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I bought a car by taking loan, I sold car but second owner not paying
01-Feb-2023 (In Banking / Finance Law)
Hi i had taken a car loan and bought a car. Due to some business difficulties i had given the car as is with the loan being taken over by another person with an agreement signed to safe guard myself. He had been paying but he has of late defaulted 6 of his emi payments and in the meanwhile has pledged the car physically to another person for 3 laks. He has not returned that money nor paid my emi s which amounts to almost 1.5 laks. Now the bank is pressuring me to pay the same. How do i take it forward?
It is your sole liability to pay the loan amount. If you failed to pay the loan then the bankers may approach the court to take possession of the car and sale the same in public auction to recover the default loan amount. If you have not paid the sale amount by the person who purchased car, you may approach the police station to lodge the cheating complaint against him.
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Adv. Selvaperumal
Chennai | 100+ Answers
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Hi,
The information (facts) provided by you is not clear whether the loan was taken over by the person to whom you sell your car. If you sold the car and loan also cleared by you (taken over by the buyer) in the bank, then you are not liable to repay the loan but the agreement for taking over the loan is signed only between you and the buyer and the buyer was repaying the loan in your name, then you are liable to repay the remaining loan amount.
The information (facts) provided by you is not clear whether the loan was taken over by the person to whom you sell your car. If you sold the car and loan also cleared by you (taken over by the buyer) in the bank, then you are not liable to repay the loan but the agreement for taking over the loan is signed only between you and the buyer and the buyer was repaying the loan in your name, then you are liable to repay the remaining loan amount.
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Adv. Shobhan M P
Chennai | 100+ Answers
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Dear sir
At the time first purchase by you, endorsement will be made the fancier in the Registration certificate if vehicle. Till the closing of loan it would continue. In case you want to sell the vehicle for any reason, it should be made only after the payment of entire Loan amount otherwise the proposed purchaser have to get no objection certificate from financier after e exiting necessary documents. But the hypothication will continue to be in existence till closing of loan
Now to your Case if you sold a vehicle with the consent of financier or bank after obtaining necessary documents you need not worry about anything. If not you are also responsible forlorn amount.
At the time first purchase by you, endorsement will be made the fancier in the Registration certificate if vehicle. Till the closing of loan it would continue. In case you want to sell the vehicle for any reason, it should be made only after the payment of entire Loan amount otherwise the proposed purchaser have to get no objection certificate from financier after e exiting necessary documents. But the hypothication will continue to be in existence till closing of loan
Now to your Case if you sold a vehicle with the consent of financier or bank after obtaining necessary documents you need not worry about anything. If not you are also responsible forlorn amount.
Helpful?
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Adv. N Sudalai Muthu
Madurai | 100+ Answers
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