Buying a car through a financial institution such as you bank might seem to be the best available option when you are about to go for it, but as time passes by and the need to sell the car arises, you will realize that selling it requires a lot of steps and time. Selling a bank-financed car is quite complex, as you will need to transfer the ownership of the car and also the loan attached to it. And in some cases, banks don’t usually allow the sale of a bank-financed car until your loan is settled in full.
Despite how difficult this might seem, there is always a way to go about things. Right here, we will be sharing tips on how to sell your bank-financed car and get the best possible value for it.
When it comes to selling your bank-financed car, there are two major ways to go about this. You can either look for a buyer who will agree to clear your loan and buy the car afterward. To do, you will have to give a guarantee or an assurance to the buyer that after clearing your loan, you are obligated to transfer the ownership of the vehicle.
The following are the processes to follow when you choose to get a buyer who will first of all clear the loan of the car:
Firstly, you need to get all the necessary information regarding the loan. This includes the total amount you have left to pay the bank and the initial duration of the loan. After that, you need to get the buyer either a “Power of Attorney” or a “Seller’s agreement” document from the office of notary public close to you. To help protect your interest and that of the buyer, you should choose the “Seller’s agreement”. This document is legally valid at all points once the buyer makes the payment.
With all these arrangements, the buyer is most likely going to agree to your terms and decide to make the payment to you. Once payment is made, you need to fully settle the loan and keep whatever that is left to yourself.
After that, you need to transfer the ownership of the car to the car buyer. To do this, you will have to go to the RTA to inform them that you have settled in full the debts of the car and that you will like to transfer the ownership.
The second alternative is to go through your bank directly to settle the loan. Although quite some banks do not support this, few do. For example, Dubai Islamic Bank, Emirates NBD, and several others.
Supposing the banks grants you the permission to go ahead, the interested buyer has to present a car valuation Certificate to prove that the value of the car is more than that of the loan. If it is worth it, the bank will go ahead to settle the amount you have left. After that, ownership transfer can be made.
To be on the safe side, the bank will ask the new buyer to prove ownership of the car by submitting the insurance papers of the car, and the new registration card.