Can we change cars with a current loan?

In case you want to sell a car with an outstanding loan, it is imperative to be aware that there are several steps to take. In all cases, it is necessary to break the contract with the lender. It is all the same that these approaches differ according to the borrowing conditions, the pledges or even the different sales authorizations.

If the loan is unrestricted, there is no problem with the sale of the vehicle. On the other hand, if the credit is affected, it must be checked whether there is a clause concerning the pledge of the vehicle.


1. In the case of a personal loan

1. In the case of a personal loan

In case the vehicle is not linked to a personal loan such as a consumer credit for example, it is quite possible to sell your car even if it is under credit.

Indeed, as specified in the loan contract, the lending organization has no right concerning your purchases. In other words, you are free to sell your vehicle.


2. In the case of a car loan

2. In the case of a car loan

If the credit is allocated to the purchase of the vehicle (car loan), it is highly possible that the sale is not authorized by the lending organization. The applicant must effectively make the full repayment of the car loan before being able to separate from the vehicle.

In the case of an affected loan, in the majority of cases, certain causes mentioned in the contract prevent the owner of the vehicle from reselling his car.

There are then 3 possible financing solutions:

  • Repay the car loan in advance: It is only once the credit is repaid that the pledge disappears. Thus, the sale of the car is completely possible.
  • Go through a credit repurchase: This involves taking over an existing loan by requesting the addition of cash. It is nevertheless a relatively expensive system. The current loan is then settled and money can be made available.
  • Request the agreement to sell your car: with a loan in progress to the organization that holds this loan. The beneficiary of the pledge can ask the lending organization to sell his car under credit which will then ensure that the object of the sale will be used to repay the car loan.

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