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If I buy a brand new car with 0.0% financing and later decide to sell it, can I do that without paying off the loan? What I'm thinking is that if I get the 0% financing, why would I want to pay off the loan immediately? It would make more sense to continue making payments at 0% interest. Haven't been able to find anything online about this idea.
The collateral on the loan is the vehicle. If there is no vehicle, there is nothing to secure the loan.
The bank won't release the title without paying off the loan, and your buyer is going to want the title to the car, and will need it to register it for him/herself.
The only way this sort of works is if you find a family member or something to buy it while you keep it in your name, but there are insurance and other issues there as well.
EDIT: Typing while Mikeyyc posted, sorry for any duplicate info!
Closest thing I've done to that is buy a car with an extended warranty which was financed into the loan. I then cancelled the extended warranty within 30 days for a full refund. They issued me a check to do with as I please but I still had the loan balance out there.
The car is collateral for the loan. A lien is placed on the vehicle which is recorded with the title. If you sell the vehicle, don't pay off the loan, remove the lien from the title, you have committed a felony, Grand Larceny [fraud] The buyer can not get title to the vehicle until the loan is paid.
Yeah, you can't sell the car without signing the title over. You can't sign the title over as long as there is a lien. There is a lien as long as there is a loan using the title as collateral. So no, your idea won't work.
If I buy a brand new car with 0.0% financing and later decide to sell it, can I do that without paying off the loan? What I'm thinking is that if I get the 0% financing, why would I want to pay off the loan immediately? It would make more sense to continue making payments at 0% interest. Haven't been able to find anything online about this idea.
You can get a release of lien. I did that n a few quads I wanted to sell. I simply told the bank I was gonna come in and pay it off on Monday but needed a release to sell it so the new owner could register it. I had a good reputation with my bank so they had no issue doing it.
But it can be done
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