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Pwede ba ibenta ang kotse kahit hindi pa tapos bayaran ang car loan? Paano ang procedures nito? Kelangan ba ilipat ang loan sa name nung bibili?

 

How do you compute kung magkano ang amount na pwede mo ibenta considering na may i-aasume pang balance?

 

Sana may makatulong sa mga tanong ko. Thanks in advance!

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Guest lustfortravel
Pwede ba ibenta ang kotse kahit hindi pa tapos bayaran ang car loan? Paano ang procedures nito? Kelangan ba ilipat ang loan sa name nung bibili?

 

How do you compute kung magkano ang amount na pwede mo ibenta considering na may i-aasume pang balance?

 

Sana may makatulong sa mga tanong ko. Thanks in advance!

 

your LTO certificate of registration is encumbered with the bank so technically, you don't have the right to sell the car. however, presuming your buyer is aware of the fact that it is still encumbered with the bank and is agreeable to the sale,you can do the ff:

 

1. the two of you execute a deed of sale and the buyer pays off your remaining balance with the bank. at the same time, the buyer holds an authorization letter from you stating that you have given him the authority to get all documents from the bank once it is fully paid. the bank prepares a cancellation of mortgage and has it cancelled in the register of deeds. the buyer gets the cancellation and the or/cr and has it unencumbered by LTO, at the same time, has it transferred to his name based on the deed of sale.

 

2. if the buyer wants to have the vehicle under his car loan, then he would have to apply for a loan, ( presuming the bank will accept a secondhand vehicle) and submit his own financial documents for the bank to evaluate the granting of the car loan.

 

there is no automatic assumption of a loan just because you, the borrower, has decided to sell the vehicle in the middle of an existing car loan. the bank granted the loan based on your personal capacity and thus, would have the right to evaluate the borrower on his own personal capacity to pay.

 

as to the amount for you to be able to sell, check out the market value of your vehicle ( taking into account depreciation and expenses related to the transfer, depending on your agreement as to who will shoulder). after the buyer has settled the bank and the expenses for the transfer, he can pay you the balance of the agreed amount.

Edited by lustfortravel
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Thank you lustfortravel for answering these questions in detail. :)

 

Just some additional questions:

 

1. Di ba risky kung i-me-maintain sa name ko yung loan? What if hindi consistent yung buyer sa pagbabayad? Magrereflect yun sa name ko, right?

 

2. If I leave it (the old loan) in my name, makakaloan pa ba ako agad or should I wait for it to be fully paid? I guess i-eevaluate din ulit yung capacity ko...

 

3. You said the buyer will pay the balance of the agreed amount after he has settled the bank. Do you mean settle the loan or just the bank requirements?... Kasi normally di ba they pay you first then they start paying for the assumed balance?

 

Thanks again for your answers!

 

The rest could also share their knowledge and views. ;)

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Guest lustfortravel
Just some additional questions:

 

1. Di ba risky kung i-me-maintain sa name ko yung loan? What if hindi consistent yung buyer sa pagbabayad? Magrereflect yun sa name ko, right?

 

yes, it is risky. if the buyer will not pay, the bank will run after you, not him. ikaw naman ang umutang sa bangko eh, hindi yung buyer. and if you run the risk of repossesion because of non-payment, your credit rating will be reflected in all banks and financial institutions.

 

2. If I leave it (the old loan) in my name, makakaloan pa ba ako agad or should I wait for it to be fully paid? I guess i-eevaluate din ulit yung capacity ko...

 

again, yes, you will be evaluated based on your capacity to pay. if your source of income is more than sufficient to cover existing and new debts and your credit rating is good, the bank will be more than happy to lend to you, even if you still have an existing loan.

 

3. You said the buyer will pay the balance of the agreed amount after he has settled the bank. Do you mean settle the loan or just the bank requirements?... Kasi normally di ba they pay you first then they start paying for the assumed balance?

 

there is no "assumption of loan" here. remember, the bank only recognizes the agreement between you and the bank- in short, wala silang pakialam sa transaction ninyo ng buyer. that's between you and your buyer. so the only way for your buyer to get the OR/CR transferred to his name is to pay off the remaining balance, have it unencumbered then transferred to his name. only then can he use the same car to apply for a loan with the same bank. this is also presuming the bank will accept second hand vehicles. new borrower na ang evaluation sa kanya.

 

no bank will agree to assumption of a loan since the loan was granted to you in the first place, based on your capacity to pay. they will not agree to a transfer of loan since it is disadvantageous to them and besides, the vehicle is not "yours" to sell technically since it is mortgaged to them.

Edited by lustfortravel
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Guest lustfortravel
Great! Nice to finally meet a financial advisor! :)

 

Going back to the topic (and sorry kung makulit na), I could still demand for initial payment (to cover some of those I've already paid) as soon as we made an "agreement" on the balance, right?

 

 

the only way for you to "demand" initial payment is if the buyer agrees to give you your share in advance and settle the balance with the bank afterwards. if he pays you the balance first, he gets the vehicle but he doesn't get ownership unless the balance is settled and everything is transferred to his name . if he is fine with this, then i don't see any problem in your transaction. :)

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Thank you lustfortravel for answering these questions in detail. :)

 

Just some additional questions:

 

1. Di ba risky kung i-me-maintain sa name ko yung loan? What if hindi consistent yung buyer sa pagbabayad? Magrereflect yun sa name ko, right?

 

2. If I leave it (the old loan) in my name, makakaloan pa ba ako agad or should I wait for it to be fully paid? I guess i-eevaluate din ulit yung capacity ko...

 

3. You said the buyer will pay the balance of the agreed amount after he has settled the bank. Do you mean settle the loan or just the bank requirements?... Kasi normally di ba they pay you first then they start paying for the assumed balance?

 

Thanks again for your answers!

 

The rest could also share their knowledge and views. ;)

NEVER sell a car and still have your name on the loan. You have to sell it outright period.

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Thank you lustfortravel for your wonderful advices! Feel free to add more info and tips along the discussions. :)

 

id6230, what exactly do you mean when you say "sell it outright"? Do you mean let him apply for his own loan? Sorry if I'm quite naive on these stuffs... :)

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^ Well if you're getting a brand new car through a dealer sila na ang mag-fafacilitate ng applications mo.

 

They will look for banks who would approve your loan application kasi nga naman sure na may benta sila pag na-approve ka. Your dealer will let you know of the requirements.

 

As long as they could be assured that you have enough money (no other loans, mortgages, etc) and your monthly income is a lot higher than the monthly amortization then I think it won't be a problem. Madali na makakuha ng car loans ngayon e. :)

Edited by bagito
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