Loss in selling a third hand car?

tmanish76 · 19th February 2008, 13:52

Hi Guys,

Am planning to sell off my black accent GLX bought in June 07 as I am going abroad. It is a third hand vehicle having done about 59000kms.

Took a loan of 2.5 lacs for the car and made a downpayment of 25000. At an EMI of 8913 there is 2.58 lacs more to be paid while the current outstanding principal is 2.12 lacs. My first query is which of the said amounts would I have to pay for foreclosing the loan? I do not want to end up shelling out from my pocket to sell the car and close the loan.

Have approached firstchoice for the quote. Can not the loan be transferred to the buyer? What price should I look at so that I do not end up paying anything?

ram_hyundai · 19th February 2008, 17:08

your loan cannot be transfered to anyone.the only option left is sell the car and payoff your loan.so it depends on whats the outstanding amount and whats the closure figure for the loan.
ram

BaCkSeAtDrIVeR · 19th February 2008, 17:26

Quote:

Originally Posted by tmanish76

Took a loan of 2.5 lacs for the car and made a downpayment of 25000. At an EMI of 8913

My condolences. You are paying about 30% more than what is required.

Quote:

there is 2.58 lacs more to be paid while the current outstanding principal is 2.12 lacs.

Means you have not been paying enough EMI - your outstanding is more than the loan you availed. (you availed 2.50, now 2.58 is outstanding).

[/quote]My first query is which of the said amounts would I have to pay for foreclosing the loan? I do not want to end up shelling out from my pocket to sell the car and close the loan. [/quote]

Principal + accrued interest + foreclosure fee.

SInce Principal + outstandign interest is 2.58, you will still be required to pay foreclosure fee.

Quote:

Can not the loan be transferred to the buyer?

Loan is personal to an individual. The creditor can refuse to make a loan to a particular person. The buyer may not want a loan also.

My personal experience is that if you take a loan to buy a vehicle, and want to sell the vehicle before the loan tenure, you end up having to shell up more from your pocket than what you realise from sale of the vehicle.

tmanish76 · 19th February 2008, 21:24

So bottom line is that no matter which way I look at it, I'm gonna pay from my pocket to sell the car.

If I decide to keep it, I'll need new wheels & tires, silencer, headlamps, taillights, body work and so on to make it as good as new which will set me back by about 70000.

Is there any other option that will not bleed me dry? Coz if I wait till the tenure expires in 3 years, I doubt that I would get even half the price for the vehicle...not to mention the spares availability at that time.

Strangerintown · 20th February 2008, 01:00

You will need to repay the principal outstanding of Rs 2.12 L and the fore closure penalty as would be applicable for your financier - could be anywhere between 2% to 5% of the principal outstanding.

Since you have already talked to first choice, they should be able to guide you on the loan foreclosure.

Also some loan agreements have a lock in period within which the loan cannot be fore closed. This is usually 6 months and so you should be out of the lock in. However might be worth checking on this as well.

Cheers

nishantgandhi · 20th February 2008, 09:42

tmanish, it might also be worthwhile and useful for the rest of the members if you could share your experience in dealing with First Choice. What valuation did they offer to you? Did you explore any other used car dealers as well?

tmanish76 · 20th February 2008, 13:37

Quote:

Originally Posted by nishantgandhi

tmanish, it might also be worthwhile and useful for the rest of the members if you could share your experience in dealing with First Choice. What valuation did they offer to you? Did you explore any other used car dealers as well?

Hi Nishant,

Firstchoice was the only dealer I consulted. Am a bit scared of going to any others after my experience with Velocity Motors in buying this car. They literally took me for a ride.

With Firstchoice, I received a call within a day of registering and yesterday a guy came down to my office to inspect the car. He filled out some Evaluator's report, took a test drive and told me that he would call back with a quote that he is yet to do.

19th February 2008, 13:52	#1
tmanish76 BHPian Join Date: Aug 2007 Location: Mumbai Posts: 50 Thanked: 0 Times	Loss in selling a third hand car? Hi Guys, Am planning to sell off my black accent GLX bought in June 07 as I am going abroad. It is a third hand vehicle having done about 59000kms. Took a loan of 2.5 lacs for the car and made a downpayment of 25000. At an EMI of 8913 there is 2.58 lacs more to be paid while the current outstanding principal is 2.12 lacs. My first query is which of the said amounts would I have to pay for foreclosing the loan? I do not want to end up shelling out from my pocket to sell the car and close the loan. Have approached firstchoice for the quote. Can not the loan be transferred to the buyer? What price should I look at so that I do not end up paying anything?
	() Thanks

19th February 2008, 17:08	#2
ram_hyundai Senior - BHPian Join Date: Jun 2006 Location: Calicut ,trisur Posts: 2,020 Thanked: 53 Times View My Garage	your loan cannot be transfered to anyone.the only option left is sell the car and payoff your loan.so it depends on whats the outstanding amount and whats the closure figure for the loan. ram
	() Thanks

19th February 2008, 21:24	#4
tmanish76 BHPian Join Date: Aug 2007 Location: Mumbai Posts: 50 Thanked: 0 Times	So bottom line is that no matter which way I look at it, I'm gonna pay from my pocket to sell the car. If I decide to keep it, I'll need new wheels & tires, silencer, headlamps, taillights, body work and so on to make it as good as new which will set me back by about 70000. Is there any other option that will not bleed me dry? Coz if I wait till the tenure expires in 3 years, I doubt that I would get even half the price for the vehicle...not to mention the spares availability at that time.
	() Thanks

20th February 2008, 01:00	#5
Strangerintown BHPian Join Date: May 2006 Location: Mumbai Posts: 240 Thanked: 190 Times	You will need to repay the principal outstanding of Rs 2.12 L and the fore closure penalty as would be applicable for your financier - could be anywhere between 2% to 5% of the principal outstanding. Since you have already talked to first choice, they should be able to guide you on the loan foreclosure. Also some loan agreements have a lock in period within which the loan cannot be fore closed. This is usually 6 months and so you should be out of the lock in. However might be worth checking on this as well. Cheers
	() Thanks

20th February 2008, 09:42	#6
nishantgandhi Senior - BHPian Join Date: Jan 2008 Location: Mumbai Posts: 1,220 Thanked: 156 Times	tmanish, it might also be worthwhile and useful for the rest of the members if you could share your experience in dealing with First Choice. What valuation did they offer to you? Did you explore any other used car dealers as well?
	() Thanks