Often, many motorists who apply for a car loan, for certain circumstances, are not able to repay it. In this case, they are forced to take extreme measures and get rid of the mortgaged vehicle. However, it is not so easy to do this, especially when the TCP is in the bank. We will tell you more about how to sell a credit car with and without TCP.
Why does the bank pick up the TCP for vehicles?
To begin with, we note that after drawing up a loan agreement and obtaining a bank loan, the future owner of the mortgaged car voluntarily transfers his TCP to the creditor. What does it mean? This means that the TCP is the guarantee that during the payment of bank debt the borrower will not sell his vehicle and will not be able to reload it in any other financial organization.
After full repayment of the loan, the TCP will be returned to its owner, and the car will be deregistered.
If you apply for a loan without PTS and it remains in your hands, this does not mean that the borrower has the right to dispose of the subject of the pledge at his discretion until the loan is fully repaid, although this is again a matter of trust.
Is it legal to sell credit vehicles?
Selling a credit car is legitimate, but only if the borrower notifies the credit institution. If he doesn’t do this and tries to get out of the situation by fraud, then it’s illegal (how to sell a credit car not according to the law and what consequences it is fraught with, we will tell a bit later).
Attention! The sale of a mortgage machine, carried out within the framework of the current legislation and not contradicting credit agreements with a bank, is considered to be a completely legal action.
How to sell a credit car: TCP on hand?
Selling your vehicle if you have a TCP (which is a very rare occurrence) is much easier than without it. However, in this case, it is better to hedge and notify the financial organization of your decision. In addition, this intention can be fulfilled if this action is not prohibited in the loan agreement. Recall that in loan agreements it is written in black and white: “It is strictly forbidden to sell a car pledged by the bank until the loan is fully repaid.”
Therefore, even if the TCP remained with you after the loan was issued, there is no point in taking risks. Moreover, banks often inform MREO representatives about owners who took cars on bail. Therefore, before undertaking anything, you need to check with lawyers and representatives of the bank in advance whether it is possible to sell a credit car to you?
But most often, you can sell a collateral car with a PTS on hand, but with full repayment of the loan balance.
What happens if you sell a car without the knowledge of the bank?
You decided to go for a trick, or you did it unintentionally (without malicious intent), and you wanted to sell your vehicle without the participation of the bank. What is this fraught with? For example, you suggested to implement your TS, and you already have several options how to sell a credit car. But at the same time, you did not inform the bank. What will happen? In this case, it all depends on whether you want to return the money received from the sale to a credit institution or not. If so, then no one will suspect anything. The plan for such a sale is as follows:
- search for a potential buyer;
- meeting with the buyer and demonstration of the car;
- execution of a contract of sale and receipt of a pledge (its amount should be equal to the remaining loan amount at the bank);
- drawing up a receipt (to insure the buyer);
- early repayment of the loan using the amount of the received collateral;
- closing a loan agreement;
- deregistration and registration of a car for a new owner in MREO.
If you learned how to sell a credit car in Moscow, and you found a buyer, but you didn’t want to (or forget) to return the money from the sale of a car to a credit organization, then you, first, can be held accountable under the article “Credit fraud” (Art. 159 of the Criminal Code), and secondly, all responsibility for the further repayment of the loan will be transferred to the shoulders of the buyer. Therefore, he will be able to sue you in the same way with a request to declare the transaction unlawful, since it was carried out on knowingly unfair conditions (Article 179 of the Civil Code of the Russian Federation).
Will the bank agree to sell the security car?
If you do not know how to sell a credit car, but have made a firm decision to sell it, contact your bank. In this case, the credit institution may revise your loan agreement and even find customers who want to purchase your “iron horse”. However, she agrees to do this only in two cases:
- if you have real reasons proving the impossibility of further repayment of the loan (for example, this is due to loss of employment, liquidation of all your assets through bankruptcy, due to a serious illness, etc.);
- if the loan is repaid ahead of schedule.
A plus of such an appeal is the fact that throughout the purchase and sale transaction, representatives of the bank will control its implementation (including the legality of paperwork).
This means that you will save a tidy sum on professional lawyers. Minus - loss of time and money (after the sale of the car you will not get a penny). Of course, the bank knows how to sell a credit car without too much red tape. Therefore, most likely he will organize an auction (in exactly the same way he acts when selling property confiscated by a court decision for non-payment of a loan). And as you know, at such events you can sell a car much cheaper than its real market value.
What is the easiest way to sell a car on credit?
One of the simplest and most legitimate options for selling a car is the following scheme: the borrower finds a potential buyer, shows him his “iron horse”, and if everything suits him, he goes with him and the documents to the bank. Further, in the credit institution, the prospective buyer pays the remaining loan amount. After closing the loan agreement, the borrower receives PTS and, together with the buyer, goes to the notary public to draw up the sales contract, and then to the nearest MPEO to reissue the documents and the vehicle in particular.
A new loan to replace the old one: if there is no TCP at hand
Before deciding how you can sell a credit car, write out a plan for yourself indicating the options. For example, lending is safe and legal. That is, you can apply for a new loan, but in a different bank and on more favorable terms for yourself. In this case, your new lender will repay your loan ahead of schedule for you, and you will only have to timely fulfill your loan obligations to him. For example, Sberbank of Russia, Alfa-Bank, VTB-Bank and others are engaged in re-lending or refinancing of large loans.
Another option on how to sell a credit car without a TCP (and with a TCP) is to issue a loan for urgent needs in another bank. In this case, you get a new loan, repay your current car loan yourself and additionally win a certain amount of money.
Among the advantages of such refinancing, we single out a quick opportunity to get rid of an expensive loan and the legality of the method. Of the minuses - a new “credit bondage”.When arranging a loan for personal needs, in addition to the possibility of selling a car that has already gone beyond the concept of “pledge”, you can think about how to sell a credit car and buy a new one.
That is, having received a new loan and paying off the old one, it makes sense to use the remaining money as a down payment when buying a new vehicle on credit.
Renewal of the pledge: will the bank go for it?
Have not decided yet how to sell a credit car without TCP? You can consider the following option: you come to a lending institution, say that you plan to sell your car in the near future. In return, you are ready to leave a new deposit, for example, in the form of your country house or any other real estate, equivalent in value to the property. This option is most suitable if your buyer does not risk contacting a credit vehicle, and you do not have your own funds for early repayment of a loan.
Therefore, if you are extremely honest with a credit institution, it will certainly make concessions to you and will not cause obstacles.
Is it realistic to sell a car with a duplicate title?
If you have already learned a lot of information and concluded for yourself how to sell a credit car, do not give in to provocations and use obviously illegal schemes. For example, the most common of these is selling a vehicle in duplicate. In this case, the borrower, whose TCP is in the bank, applies to MREO with a statement about the loss of a passport to his car. They give him a duplicate, and he sells it in the joys.
Well what can I say? Here again, it all depends on the honesty of the borrower (whether he will return the money to the bank or not). Consequently, here again, as we said above, a double litigation is possible with the bank and the buyer (we repeat that he will have to pay a loan instead of the borrower).
Can I sell a car for parts?
If you have already read somewhere about how to sell a credit car for spare parts with a view to further non-payment of a loan, think three times. As a rule, the scheme of this option to get rid of credit bondage is as follows: the borrower disassembles his car for parts, sells them and claims theft of the vehicle. What is fraught with this action? Firstly, this again falls under the article on fraud, which, if applied, threatens the accused with a fine of up to 120,000 rubles, or another amount of income for the period up to a year, with correctional labor. The maximum term for this article is up to two years in prison.
Secondly, the announcement of the theft is knowingly false information. It is her who is often used by unscrupulous borrowers in order to obtain insurance for the car. However, the insurance company never throws its money to the wind. And this means that a commission will be created, and the consideration of the situation with theft will be studied very carefully. If the truth comes up, then there will be a place Section 306 The Criminal Code of the Russian Federation “Knowingly false denunciation” + “Fraud for the purpose of profit” and “Obligation to return unjust enrichment” (under Article 1102 of the Civil Code of the Russian Federation), as well as “Compensation to the victim of lost profits” (under Article 1107 of the Civil Code of the Russian Federation).
In addition, the sale of a car for parts is less profitable for its seller than the sale of vehicles entirely.
Can I sell a car through a car dealership?
If you are only thinking about how to sell a credit car (TCP at the bank), it is worth looking for suitable car dealerships. Often they work on the "traid-in" system. The car sales system in this way looks like this:
- Find a suitable car dealership and negotiate a sale with him;
- come to the bank (since the TCP is there), notify him and discuss the details;
- bring all the necessary documents, including a loan agreement;
- draw up a power of attorney for a car dealership.
Next, sign a contract with a car dealership, on the basis of which the sale will be carried out.By and large, a car dealership is like a big pawnshop: they brought a mortgage thing, it was appreciated, and you got the money. Therefore, initially it is worth declaring to the representative of the salon the real price for the car. And, of course, the vehicle mileage factor, its wear, etc. will be taken into account here. After all the nuances have been settled, your vehicle will be parked, and you will be asked to wait a certain time, for example, a month. If the car does not sell during the agreed period, you will be advised to lower the price and put it up for sale again.
What are the payment schemes for selling a car through a car dealership?
Payment options in this case may vary. The most common of them - work at a percentage. This means that a car dealership for intermediary services will take from you (from the amount of the sale of transport) about 10-20 (and sometimes even more) percent. Further, you can pay a strictly fixed amount for salon services and additionally pay for parking your car (including payment per day).
Payment for a car itself can be carried out according to the principle: 50-60% of the assessed value immediately and 20-30% - at the end of the transaction (after the sale of the vehicle). The rest will be taken by the salon for its services.
What are the pros and cons of selling a car through a salon?
Among the advantages of selling vehicles through car dealership representatives are the following:
- lack of troubles with paperwork (all paperwork is controlled by salon specialists);
- high sales speed (a car dealership can realize your TS through its dealers and partners very quickly);
- getting rid of a loan (provided that the money received is transferred to the bank to repay the loan);
- the opportunity to gain a small amount of money from the sale;
- lack of costs and time for submitting advertisements.
Among the cons:
- additional expenses for paying for salon services;
- parking expenses;
- loss in money (associated with depreciation and mileage).
In other words, if you want to sell a credit car, you can always find a legal way to do this. Therefore, obey the law and do not try to deceive the bank!