Not all new owners of vehicles purchased on credit wish to organize their future according to the standard scheme: monthly payments - use of the purchased machine. Someone does not have enough funds to pay the loan, someone wants to replace the car with a more suitable one, someone wants to buy more or less expensive equipment. But how to sell a credit car? In the article we will analyze the procedure in detail.
TCP seizure
And the first difficulty here is that the TCP (vehicle passport) is not in the rightful owner, but in the bank. Typically, the credit institution seizes the document after the registration of the machine. The client is given 10-15 days for this process.
The TCP is returned to the car owner only after payment of the majority of the loan or after full repayment of the loan. Thus, the bank seeks to protect itself from unscrupulous borrowers. And the owner has a problem: how to sell a credit car, if TCP at the bank?
A loan agreement with the transfer of a vehicle passport to a credit institution has specific objectives:
- While the TCP is at the bank, the borrower (being a full owner on the papers) can only operate the car, but not dispose of this property. Sale, exchange, donation occurs only under the control of a credit institution. Accordingly, such a limitation gives the latter confidence that the borrower will not stop paying loan payments.
- If the client allows for long delays, cannot manage his loan, then the bank, having a TCP, can easily put the car up for auction.
- Before the end of the loan agreement, the borrower has an obligation to insure the car according to the expensive CASCO system.
But you can sell a credit car with a TCP on hand. Some banks do not require the transfer of a vehicle passport to them when taking a car loan. But, in fact, the proposal is more like a trick - interest rates on such loans are much higher, while the bank’s rights to the credit machine remain the same.
Car loan without TCP withdrawal
If you nevertheless decided to stop on an auto loan without a deposit in the form of a vehicle passport, then you should contact the following credit organizations:
- Sberbank Note that such loans are not available in all branches and departments.
- Unicredit.
- "Russian standard".
- Raiffeisen Bank.
These credit institutions have developed their own schemes for countering fraudulent transactions, which is why it is not necessary for them to remove TCP from the borrower. The loaned person receives such disadvantages as a high loan rate, an expensive type of hull insurance, a condition in the form of compulsory credit insurance and so on.
Credit Car Sales Options
Is it possible to sell a credit car? As we have seen, until the loan is fully repaid, the car does not actually belong to its owner. Accordingly, its sale is possible only with a number of restrictions that are disadvantageous for the owner.
So is it possible to sell a credit car? Yes, there are several ways to do this:
- Sale with the participation of the bank.
- Self sale.
- Sale by court order.
Whichever of these methods you choose, the first thing you need to do is contact the bank for permission from the transaction! Without the consent of a credit organization, you will not be able to sell cars in a legal way.
You can also offer alternative options for how to sell a credit car legally:
- Early repayment of the loan at their own expense. You deposit money, get TCP and you can dispose of the car at your discretion.
- Refinancing. In this case, a consumer loan is taken from another bank for the missing amount. These funds repay the loan ahead of schedule. You sell a car with a TCP (this is the most profitable option), and part of the funds received close the taken consumer loan.
Let's analyze each path step by step, in detail.
Selling a car through a bank
Yes, banks sell credit cars. If you want to choose this method, then you need to do the following:
- Contact the credit institution where you received the loan, and state your decision.
- Many banks cooperate with large auto networks, whose activity is the sale of used cars.
- The sales procedure takes place through this intermediary. This usually takes a minimum of time.
- After the sale, you quickly withdraw credit obligations from you.
The method is quite simple. But at the same time, it is disadvantageous - the cost of the vehicle will not be determined by you, but by the bank. Of course, the credit institution will act in its own interests, as a result of which the price will be much lower than the market.
Self sale
How to sell a credit car yourself? Naturally, this option will be much more profitable for you. There are two possible ways of development of events:
- Contacting a specialized dealership dealership. As a rule, such centers list repurchase of credit cars in the list of their services. A car dealer evaluates your car and assigns a buyback price. If you agree with her, then the salon employee will come to the bank, pay off the remaining loan amount, after which he will be given a TCP. The car center returns the difference in value to the owner. Of course, cars will be sold in the cabin at a different, higher price.
- Independent searches for a new car owner. How to sell a credit car in this case? You need to register on any of the well-known advertising sites and submit your message about the sale. Another option is to try to find a buyer among friends, relatives, colleagues. This person from the part of the funds that will be transferred to you for the car repays the remaining share of the loan. The bank returns the TCP and you register the car with the new owner.
Note that the above options are good only if you do not have delinquencies in the loan, you are not limited in terms of delay before the bank.
Judicial Sale
But this method is equally disadvantageous to both the client and the credit institution. After all, the cost of the car, which the court will appoint, will be the lowest. This amount is sometimes enough only to pay the main body of debt. And already interest, late fees are paid by the borrower from their own funds.
And the bank’s disadvantage is that the sale of a vehicle by a court decision takes quite a long time. The credit institution does not receive any loan repayments during this period.
Credit car sale algorithm
If you managed to find a buyer yourself, then you need to proceed according to a simple scheme:
- First of all, you make a request to the bank for the unpaid amount, together with interest.
- You are with the buyer in the department, where you fill out an application for early repayment of the loan.
- With the new owner, pay part of the amount provided by the funds.
- Conclude a sale agreement. Transfer the available documents, they provide you with the rest of the money from repaying the loan.
- You are waiting for the loan to close - it takes 2-3 days. Then, the TCP is returned to you, and you provide the document to the buyer in order to re-register the car on it.
Difficulty selling
All of the above methods of selling credit cars have common difficulties:
- You must inform the bank about your decision, even if you are looking for a buyer yourself or through a dealership.
- You need to get permission to sell from a credit institution! Note that not every bank agrees to a transaction.
- If you decide to sell the car without notice of the credit organization, then your actions may be regarded as fraud with the penalty due for it.
- "I sell a credit car without PTS" - obviously the disastrous start of the announcement. It is not very easy to find a buyer willing to purchase such a car - most often people are afraid of "divorce" schemes, additional problems with the purchase.
- In order to motivate the future owner to purchase, you must yield in your interests - in particular, to make a decent discount.
Illegal ways to sell
You have already heard about how to sell a credit car illegally. The most common scheme of "experts" is as follows:
- A car is purchased under a car loan with PTS Bank.
- The fraudster regularly makes the due payments within 2-3 months.
- Then the person turns to the traffic police with a message about the loss of TCP. He is given a duplicate of the document.
- With the new Title Vehicle, the car is on sale.
But such actions are criminally punishable. In 2018, they face a sentence of imprisonment for up to 5 years.
Note to the reader: in order not to become a victim of such a fraud when buying a used car, before re-registering the car for yourself, be sure to contact the traffic police to find out if the previous owner applied for a duplicate of the vehicle passport.
Many owners of credit cars who have a TCP in their hands (having issued a loan at a bank where the vehicle passport is not withdrawn) go for this kind of trick. They submit an early application for repayment of the loan, try to find a buyer in a short time. Since the TCP is on hand, they sell the car to the new owner without reporting a loan. Auto is deregistered, reissued by the buyer. The previous owner at this time tries to repay the loan with the money received as soon as possible.
And such an operation will also be a fraud, though quite easily disclosed. The traffic police department involved in the re-registration of a car may ask the bank for permission to do this with a credit car. The scheme thought out by the resourceful seller will fail.
Selling a credit car is troublesome, but possible. The main thing here is to obtain permission from the bank for the transaction.