Buying a car is one of the biggest investments that need meticulous planning. What’ll happen if you suddenly change your mind and want to invest in something other than the car? Will you still finish paying off the loan? Thanks to the process of transferring car loans, you don’t have to ponder over the uncertainty. Let us give you a brief idea of the process and its benefits.
What do we mean by “transferring car loans”?
You are welcome to change your mind anytime if you don’t want to invest in a vehicle anymore. This can also happen that you haven’t finished paying off the car loan yet but you want to sell the car already. Banks give an option to transfer the car loan to another person if you are transferring the ownership of the car to the same person.
How does this ( transferring car loans ) work?
The process of transferring a car loan is not that easy. However, it can be comprehensive and a lot smarter if you follow the following steps:
1. Go through the car loan agreement paper:
The first thing that you need to do is t notice whether there is any mention of transferring the car loan to another person or not. What you need to find out is if your bank allows you to transfer the loan to another person. However, it will be difficult if the bank does not have any clause such as this.
2. Find the borrower:
If you and the borrower have already agreed to the terms of transferring the loan then it is a win-win situation. If you haven’t found the borrower yet then you can take help from a car dealer that you already know. The dealer may know people who’ll be interested to buy a second-hand car while giving loans. Make sure that the borrower is not a defaulter. The borrower needs to present documents such as proofs of identity, address, yearly income, and a form that states the request of transferring the loan from you.
3. Change registration:
The next step is to change the registration details of the car. You must visit the nearest RTO office to do the same. You need to submit the bank and personal documents of the borrower in order to change the registration. After undertaking a background check of the new owner, the process will take two weeks to get completed. You may have to give some charges to change the registration of the car.
4. Contact the car insurer:
The person taking over your loan amount and car should comply with the insurance terms. Contact your car insurer to intimidate them with the situation of transferring your car and loan. You need to submit the bank documents to the insurance agency to let them make the necessary changes so that you don’t have to pay any additional charges in the future.
DSo, this was everything that you needed to know in order to make the process of transferring a car loan a lot simpler. Stop worrying now if you have decided to sell your car and get to the action!