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Old 06-19-2018, 01:57 PM
 
Location: Oklahoma
4 posts, read 1,972 times
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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.

Last edited by OddBall8; 06-19-2018 at 02:27 PM..
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Old 06-19-2018, 02:01 PM
 
Location: Hougary, Texberta
7,827 posts, read 10,349,004 times
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Likely not, as the car is almost always the collateral against the loan.
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Old 06-19-2018, 02:02 PM
 
675 posts, read 1,214,949 times
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No.


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!
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Old 06-19-2018, 02:02 PM
 
Location: Alexandria, VA
10,712 posts, read 19,040,812 times
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A car loses value as soon as you drive it off the lot - you might be able to sell it but at a loss (most likely) - why on earth would you do this?
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Old 06-19-2018, 02:09 PM
 
6,103 posts, read 3,261,607 times
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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.
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Old 06-19-2018, 06:25 PM
 
Location: Sarasota FL
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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.
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Old 06-19-2018, 06:46 PM
 
Location: Florida
4,376 posts, read 2,424,586 times
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Standard practice is for the lender to hold the title until the loan is paid off. You need the title in order to sell the car.
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Old 06-19-2018, 06:50 PM
 
Location: NC
1,777 posts, read 858,251 times
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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.
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Old 06-19-2018, 06:57 PM
 
Location: Raleigh
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No...well, no buyer would agree to it, and I assume against the terms of the loan contract.
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Old 06-19-2018, 10:03 PM
 
16,476 posts, read 17,501,756 times
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Quote:
Originally Posted by OddBall8 View Post
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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