Selling a financed car
Anshul Goel
(Querist) 15 October 2016
This query is : Resolved
Hi,
I brought a commercial car 1 year back on Finance.I have paid 12 EMI's for this car and 36 EMI's are pending (out of 4 years Finance). I want to sell this car now in certain amount and buyer will pay remaining EMI's going forward. EMI will continue to deduct from my bank account in future and buyer will give me same amount of bank check every week.
For this, I will make an legal affidavit document wherein I will mention above point in form of terms and condition.
Now, My question is if buyer skipped any EMI in future or don't submit complete EMI's then can this affidavit be used as proof in court? will court accept this affidavit as selling proof and can help me in enquiry over buyer?
Also please let me know any other legal document I must prepare while selling my car.
Please help me in this question asap and let me know for any other information required
Regards
Anshul
Rajendra K Goyal
(Expert) 15 October 2016
You said :
EMI will continue to deduct from my bank account in future and buyer will give me same amount of bank check every week.
Reply: Generally such arrangement hardly succeed. He can get it financed in his name.
You said :
I will make an legal affidavit document wherein I will mention above point in form of terms and condition.
Reply:
Recovery on the basis of any agreement / affidavit through court would be time and cost consuming / costly and delayed process, you may not get worth appreciable results. Points can be written after consultation from your lawyer, if you still choose to proceed.
Rajendra K Goyal
(Expert) 15 October 2016
You said :
My question is if buyer skipped any EMI in future or don't submit complete EMI's then can this affidavit be used as proof in court? will court accept this affidavit as selling proof and can help me in enquiry over buyer?
Reply:
Depend on the language of document. Process may take 5-10 years in recovery on the basis of document. On default financier would take over the vehicle.
You said :
Also please let me know any other legal document I must prepare while selling my car.
Reply: Discuss with your lawyer.
Name on Registration can not be changed till loan is cleared and legally you would remain liable towards any liability on vehicle.
You should avoid such deal.
Kumar Doab
(Expert) 15 October 2016
You can benefit from the advise of Expert Mr. Goyal.
Ms.Usha Kapoor
(Expert) 16 October 2016
Agree with expert Mr.RK.Goyal.
Kuummaar AS
(Expert) 16 October 2016
Anshul Goel,
You have said
" I brought a commercial car 1 year back on Finance.I have paid 12 EMI's for this car and 36 EMI's are pending (out of 4 years Finance). I want to sell this car now in certain amount and buyer will pay remaining EMI's going forward...
Your query is hypothetical.
As the car is financed, it must be hypothecated to the authority, which has financed it. Thus, it cannot be sold without NOC of such Authority.
As per the arrangement informed by you, the car will remain in your name as you will be paying the balance EMIs.
Now questions arise
1.What will be the interest of a third person to buy your car by paying you the agreed amount and paying outstanding EMIs to you instead of to the party, which has provided Finance?
2. Even if the third party agrees to the arrangement for avoiding transfer, what will be your interest in taking the risk of challans and other untoward incidents, the liability for which will be yours being the owner in records of the concered authorities of transport department.
FOR MEANINGFUL ADVICE, ANSWER THE ABOVE QUESTIONS.
Guest
(Expert) 16 October 2016
It is almost Like your self Hiring the Car.If any damages /accidents or if the Vehicle is used for any Illegal or Criminal activity you could be the A1 in the case.When ever you sell your Vehicle effecting the Name Transfer is Very essential.For the sake of some Money which you prefer to get Now do not involve your self in greater risk.Better Discuss with the Finance company and effect the Transfer of Loan as well as vehicle to the buyer's Name.Other Wise you could be in Soup.In 2000 one of my client sold his car by signing the RTO Transfer Documents but it was not implemented and after 10 days a Police Team from out station arrived at his residence for the Reason the Vehicle was involved in a Murder.By god's grace with the help of Brokers who initiated the Sale Transfer he was safe.
Kumar Doab
(Expert) 16 October 2016
The rights are hypothecated to Bank by you.
You can not breach.
Anshul Goel
(Querist) 16 October 2016
Thank you all for your valuable advise. I appreciate your time investment to resolve my this query and giving valuable suggestions. I am now refraining myself to do any such deal. Thanks a lot to all of you.
Kuummaar AS
(Expert) 16 October 2016
Anshul Goel,
You have said,
'Thank you all for your valuable advise. I appreciate your time investment to resolve my this query and giving valuable suggestions. I am now refraining myself to do any such deal. Thanks a lot to all of you.'
YOUR NOT ANSWERING THE TWO QUESTIONS RAISED ABOVE PROVE THAT YOUR QUERY WAS HYPOTHETICAL.
Kumar Doab
(Expert) 16 October 2016
You are welcome.
Kuummaar AS
(Expert) 16 October 2016
Anshul Goel,
You are very lucky. Ask why?
Anshul Goel
(Querist) 16 October 2016
Kumar AS, my query was not hypothetical. I got the best advice from the best lawyers which gave me insight to take the decision.
And yes tell me how am I lucky.
Guest
(Expert) 17 October 2016
The Querist had Not Got his reply.
Guest
(Expert) 17 October 2016
Thanks to Expert Mr.Anshul Goel
