How to Sell a Car Still Financed by Crédit Populaire Eurpéen?

A vehicle whose acquisition has been financed by a loan can, in some cases, be sold even if the repayment is not yet complete. Thus, there are a number of steps to follow and conditions to meet in order to carry out such an operation. Do you want to resell a car?

Indeed, from the nature of the loan to the various clauses specified in the credit contract, everything must be considered before the possible transfer of a car still under credit.

Simulate your loan to resell a car

Constraints related to the nature of the loan

Regarding the constraints related to the nature of the loan, first of all, it determines the possibility of reselling a car financed by a loan. For example, if the borrower purchased the vehicle through an unallocated credit. The lending institution does not require any justification regarding the destination of the granted capital. This concerns notably personal loans or consumer credit. In this case, the borrower can dispose of the vehicle as they see fit, even if the credit institution contributed partially or totally to its acquisition.

Resell your vehicle?

If, on the contrary, the financing of the acquisition of the car was carried out through an auto loan. The sale is not always permitted. According to the credit institution, this allocated loan may be accompanied by the pledging of the vehicle. In this case, it is impossible to sell the car as long as the loan repayment is not completed since legally, it is the lending institution that owns it. However, it is possible to negotiate with the bank if the proceeds from the sale of the car contribute to the repayment of the loan.

The clauses of the loan contract

As for the clauses of the loan contract, moreover, it is important to carefully reread the loan contract before considering reselling a vehicle purchased with the assistance of a credit institution and whose repayment is still ongoing. Indeed, some clauses may stipulate that the borrower cannot in any case sell the vehicle, the object of the loan, without the agreement of the lending institution. It is essential, in this case, to contact them to request their consent.

Furthermore, it is always interesting to see the terms provided in the loan contract regarding the ownership of the vehicle. If the document states that the car remains the property of the lending institution until the full repayment of the loan, it is then inadvisable to proceed with its sale, at the risk of violating the law for misappropriation of pledges.