Sell a financed car – Here's how

It is possible to sell your financed car. Even if the bank has kept the vehicle registration document as security. If your circumstances have changed fundamentally, selling the financed car can make sense. Konto-Kredit-Vergleich.de shows how it works!

With a loan without depositing the vehicle letter, the matter is quickly clarified

Various banks now offer the Car loan without a vehicle registration document as security at. This makes it easy for the borrower to sell the car. Even if it's funded. After all, in this case you have the vehicle registration document. It's a fact: the car cannot be sold without a vehicle registration document. From my point of view, there is a highly recommended car loan without a car letter from the ING (ING-DiBa).

ING is a very uncomplicated and customer-friendly bank. Not only does ING dispense with the car letter, it also offers its very low interest rate regardless of creditworthiness. The processing of the ING car loan is also very easy. As a rule, the proof of purchase does not have to be submitted. In this way, ING reduces the bureaucratic effort for borrowers to a minimum. In addition, as a borrower at ING, you can free special payments make. You can even refund everything at any time.

Bankloan amountDurationfinancing
without vehicle registration
interest rate
independent of creditworthiness

financing
without proof of purchase
More information

ING car loan
5.000 €
until
65.000 €
24 Months
until
84 months

To offer:
ING.de

Sell a financed car if the vehicle registration document has been deposited: rescheduling! »

By rescheduling the loan, you can pay off the remaining loan amount with a Credit without purpose pay off This will give you the KFZ letter back. So you can sell your car relatively quickly. Compare now »

Tip: reschedule the loan and use the special repayment right

With your new loan, you should make sure that you have the opportunity to special repayments have. With unscheduled repayments, you don't tie a block on your leg when rescheduling your car loan. As soon as you have sold your car, you can use the sales proceeds as a special repayment for your installment loan. This will get you debt free in no time.

Sell a financed car: reschedule the loan and use the special repayment right
Sell a financed car: reschedule the loan and use the special repayment right

ING offers a cheap installment loan with which you can do exactly that: make special repayments as much and as often as you want at any time. This is the ideal loan for rescheduling your car loan if you want to sell the car. You can redeem the ING loan directly after receiving the sales proceeds with a large special repayment. There is no limit to the amount of the special repayment at ING. More information on the ING installment loan* »

Sell financed car

1) Sell a financed car through debt restructuring

You can't sell a car without a letter. Also not from private to private. Point. This fails at the latest when the vehicle is re-registered. It is not possible to re-register without the KFZ letter. In addition, the buyer wants to make sure that the car really belongs to the seller and that he is not buying any stolen goods. So you absolutely need the vehicle registration document to sell the car.

Before sales activities are planned, you as the borrower should contact your financing bank. First, the bank must check how much the remaining loan amount is. The remaining regular term of the loan must also be determined. Under certain circumstances, a prepayment penalty may be due when replacing the car loan.

As a borrower, you should also know the remaining loan amount. You can then compare the determined vehicle value. Now you determine the difference between the vehicle value and the remaining loan amount. If the vehicle value is higher than your remaining loan amount, you will receive money from the sale. Otherwise you have to make up the difference with the new installment loan. You should be as precise as possible here. After all, the installment loan is for a vehicle that has already been sold at the time. The running time should therefore be kept correspondingly short. You best choose one Loan with special repayment option.

Tip: Debt restructuring is an unproblematic way of selling a financed car. Compared to the other options, significantly less coordination effort is required. Debt rescheduling car loan online »

2) Conversion at the dealer

If the car was financed through a dealer, you can make an agreement with the same dealer. With the approval of the car bank, the equivalent value of the car can be offset as a down payment. The procedure is similar to a trade-in. You do not have to take out an installment loan and the dealer benefits from you as a customer.

In principle, the procedure is also possible via a second dealer. The second dealer pays the remaining credit amount to trigger the car letter to the bank. If the residual value of the car is below the remaining loan amount, the new financing increases accordingly. The same applies if a prepayment penalty becomes due.

Selling a financed car is also possible with the conversion at one or two dealers. You just have to know how to do it!

3) The buyer takes over the financing

In the meantime, used car financing has become the norm for many people in Germany. According to a study by DATE from 2019, 45 % used cars were financed through a loan. This means that the takeover often offers financing by the buyer.

With this option, it is important to first speak to the bank to see if they will transfer the financing to the potential buyer. The transfer does not mean any losses for the bank, because the bank's installments will continue to be serviced. However, the creditworthiness of the buyer must be good enough for the bank to agree.

The car can still serve as collateral for the bank. The vehicle registration document only has to be handed over briefly to register the car for the new borrower. Written agreements between the three parties must be made for this process. It is usual for the new borrower to make a down payment, which is regulated in a preliminary contract.

Another option is for the bank to send the vehicle letter directly to the responsible vehicle authority for rewriting. This eliminates the need to hand over the KFZ letter to the new borrower. Since this involves additional work for the bank, banks charge a fee for this.

4 ) Alternative security

Another way to sell a financed car is to give the bank a alternative security instead of the car to offer. This triggers the KFZ letter. Alternatively, an agreement can be reached with the bank that the seller pays the remaining loan amount in one go after the sale of the car. After the redemption, the bank hands over the KFZ letter to the seller of the car. The latter then immediately passes it on to the buyer. The buyer, on the other hand, can receive a copy of the vehicle registration document from the bank in advance in this constellation. This creates trust. However, it is not possible to register or use the car with the copy. To do this, the buyer must wait for the original vehicle registration document.

The “submit a letter later” model requires trust in the seller. A sales contract is mandatory for this option. The procedure and corresponding deadlines are to be regulated in this contract. The contract should state within what period of time the seller sends the letter to the buyer. A short period of time is always necessary due to the deregistration of the vehicle by the seller.

Another risk is that after the car has been sold, the seller still has to add money because the residual value of the vehicle is too low. The seller should have this difference in cash in his account.

Conclusion: There are 4 ways to sell your financed car

In summary there is 4 ways Sell your financed car. Even if the bank has your letter. Next to the Debt restructuring via an installment loan you can also think about whether a Conversion at a dealer for you to consider. Other options are with the buyer Taking over the financing to be agreed or to submit the letter to the buyer later by replacing the credit with other securities.

Have you lost your vehicle registration document? In this post you will find out Why you shouldn't buy or sell a car without a registration document and what you should do instead.

Tip: Debt restructuring is an unproblematic way of selling a financed car. Compared to the other options, significantly less coordination effort is required. Debt rescheduling car loan online »

⚠️ Do you have bad credit and need a new car? In the guide: Car loan without SCHUFA query you will find an alternative way to get a car loan despite bad creditworthiness. ⚠️

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