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Hi pals, my brother's car (Maruti Esteem) has a monthly EMI on however we want to sell it off. My father gifted the car to him and hence pays the EMIs and wants to continue with them to enable my brother to sell of the car and use to money in his business instead of repaying the loan (both will be equivalent now because the car's value is way less now). Is it possible to transfer the car with the EMI being paid by the same person. The car loan is from SBBJ (government bank hence no one will take initiative to come to us and solve our matter). Please assist buddies.
MODS please move the post to the right thread if I have posted in the wrong one, I found this one the most suitable for my question.
I don't think you can do that. You cannot sell a vehicle which is under hypothecation. You will have to take an advance from the buyer (make a written agreement for that) & pay off the balance, get the hypothecation removed from the RC & then transfer to the buyer's name.
Hi Gaurav,
You cannot sell the vehicle until and unless the hypo is cleared.The bank has to give a clearance certificate once the final loan has been repayed citing that no dues are left.
Only then you can transfer/sell the vehicle to another person.
Just curious - how long does the process of removing hypothetication and the transfer of name take?
@gaurav: Won't it be cheaper to for your dad to prepay the loan?
And this Q should be in the section "Indian Car Loans & Insurance".
Indian Car Loans & Insurance - Team-BHP
You will find many such useful discussions about loan closing there.
Quote:
Originally Posted by gaurav_diavolo
(Post 1573445)
Hi pals, my brother's car (Maruti Esteem) has a monthly EMI on however we want to sell it off. My father gifted the car to him and hence pays the EMIs and wants to continue with them to enable my brother to sell of the car and use to money in his business instead of repaying the loan (both will be equivalent now because the car's value is way less now). Is it possible to transfer the car with the EMI being paid by the same person.
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The only possibility would be to give the car to a member of the immediate/extended family who can wait to get the ownership transfered until the loan is over. As others have already mentioned, you cannot legally sell the car (transfer the ownership) until the loan is cleared.
Please don't think of giving off the car to any untrustworthy individuals - you will be in trouble if the car is misused or meets with an accident. It remains the responsibility of the car owner until the proper documentation is completed.
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