If you have a car loan over your head and you want to sell the car, though it’s tough it’s not impossible. The most preferred option is to close your loan account by prepaying the loan and then sell the car. But if you are unable to repay the loan, there is an option to transfer the loan to the next person. To be able to transfer your car loan to somebody else, you need to surrender the ownership of the vehicle to them as well. Banks might allow you to take the burden of a car loan off your shoulders by handing it over to someone else, provided you meet their requirements. Whatever be the reason for selling the car, you can transfer the loan using the process given below.
The process of transferring your car loan entails the following:
Your loan documents will clearly state if it is possible to transfer your loan to another person. If you are unable to find this information, you can contact your bank and get clarification on the options of transfer and the process. If your bank has specifically mentioned that the loan is not transferrable, then it will be extremely difficult if not impossible to transfer it.
You will need to find a person who is willing to take on the loan and the ownership of your vehicle. Unless you make a good offer, people might generally not be interested in taking up a loan halfway through. Do your research on the used car rates and do your calculations to estimate a good price to sell your car. The fact that you are selling the loan along with the car will bring down the price of the vehicle. But this depends on how much of the loan is left for the new owner to handle.
The person who will be taking over your loan should have the same or better credit standing as you. This person should preferably not have defaulted on any loan previously. He should have a steady source of income and a good credit score depicting clear repayment history of any prior loans or credit card debts. The new borrower will have to submit KYC documents required by the banks.
If you are unable to find a suitable buyer to transfer the loan, you can contact a car dealership. These dealerships have contacts related to purchasing used vehicles and it might be easier finding a buyer through the car dealer.
Transferring the loan documents is not the only concern in this process. You will need to transfer the registration of the car as well. To do this, you need to visit the closest Regional Transportation Office (RTO). The RTO authorities will transfer the ownership of the vehicle to the new owner. Processing this request will take up to two weeks. The authorities will have to do a background check with the bank before they change the name in the Registration Certificate. There may be charges applicable for this.
The new borrower will also have to fit the insurance requirements. You will need to check with the car insurance provider to get consent on transferring the insurance policy as well. Submit the bank documents to the insurance provider and they will make the changes. This will ensure that you don’t get charged for premiums you don’t have to pay. The new owner of the car will have to bear the car insurance premiums.
Car insurance policies for the motor enthusiast in you. Have you found yours yet?
The new borrower will have to submit the following documentation.
The bank may request for more documentation as they may deem fit.
Banks may levy processing fees and transfer fees for change of the loan borrower. Depending on the remaining loan tenure and principal, the charges will vary. You need to check with your lender to find out the charges related to the transfer process.
GST of 18% is applicable on all banking products and services from the 1st of July, 2017.
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Major automobile manufacturers in India are looking to cash in on the increasing demand for automated manual transmission (AMT) gearboxes. Maruti Suzuki, Tata Motors, and Hyundai have all begun to increase the number of AMT models.
Some automakers believe that in five years time, almost every second car in the country could be an AMT. Hyundai Motors have increased its share of AMTs to 9.8% from the previous 4% in 2015.
According to an executive from Maruti Suzuki, the popularity of AMT vehicles is due to the comfort and ease of operation and fuel efficiency. Maruti Suzuki is planning to sell around 2 lakh AMT vehicles in 2018-2019.
7 September 2018
Maruti Suzuki has introduced the Special Edition Dzire in the Indian automobile market. The car is based on its lower specifications, the LXi and the LDi trims that are the outgoing models. The Dzire is expected to be made available in both diesel and petrol variants. The price of the petrol version of the car is expected to be Rs.5.56 lakh while the diesel variant costs Rs.6.56 lakh, both ex-showroom Delhi. Hence, the new model of the car is costlier than the outgoing versions by about Rs.30,000.
The 2018 Maruti Suzuki Special Edition Dzire has a wide range of additional features, including wheel covers, power windows, and rear parking sensors. The car also has remote central locking facility and a Bluetooth-enabled music system. Other significant features of the vehicle include ABS, brake assist, and dual front airbags.
Maruti Suzuki is looking to attract a wider customer base towards the base variants of the car by offering additional equipment in the new Dzire.
The car will continue to be made available with the 1.2 litre petrol engine and the 1.3 litre diesel motor. The petrol engine generates 82 bhp of peak power and 113 Nm of maximum torque. The diesel motor will juice out 74 bhp of peak power and 190 Nm of maximum torque. The engines are both coupled to 5-speed manual transmissions.
14 August 2018
India’s most popular car manufacturer, Maruti Suzuki, has announced that it will be rolling out a new entry-level car by 2020. The new entry level car has been code named Y1K will be the first entry level car to be launched by the car manufacturer in the last 2 decades.
The new car is expected to run with a petrol engine that has a capacity ranging between 800cc to 1000cc. Maruti is hoping to have a prototype of the car ready by the beginning of 2020 and plans to have it launched later the same year.
18 July 2018
South Korean carmaker, Kia Motors is all set for its entry into the Indian market with its 4 car models which will include the SP concept-based SUV. With the introduction of these 4 models, Kia Motors aims to bring more business to India and make it a global hub for manufacturing. The carmaker will target automotive suppliers of Tier I and Tier II cities which will aid the company to create cost-effective but superior quality products.
Kia Motors is a sister-concern of Hyundai and it intends to manufacture/assemble its vehicles in India. The pattern of the product launch is at the moment being worked upon. Meanwhile, the carmaker is looking for suppliers in India who can serve its vendors in South Korea. Kia Motors have set up a manufacturing plant in Andhra Pradesh where production will begin from August 2019.
6 June 2018
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Display of any trademarks, tradenames, logos and other subject matters of intellectual property belong to their respective intellectual property owners. Display of such IP along with the related product information does not imply BankBazaar's partnership with the owner of the Intellectual Property or issuer/manufacturer of such products.
