When you are urgent and need money when financial conditions are difficult, it will definitely make you depressed and stressed. To avoid that, the most appropriate way is to pay off all the installments you have or sell your valuable assets. In order to do this, the first thing that comes to your mind may be selling your vehicle, such as a car. But, what if you want to sell a car that is still on credit or has not been paid off?
Don't worry, you can still do it. It's just that there are a few additional steps and the method is not difficult.
When you have credit, usually your vehicle documents are held by the company that gives you credit or is called a finance or leasing . This they do to ensure that you don't sell your car without paying off your credit.
Before you decide to sell your car that is still on credit, here are tips and ways you can do it, namely Take Over Credit and Refinancing.
Take Over Kredit
Take over credit is the process of buying and selling assets where the buyer will take over the remaining installments/debt from the seller, so that the seller is free from the obligation to pay the installments.
Take over credit may sound foreign to you. In short, even though it doesn't add money, by taking over your car installment credit, it will be the responsibility of the buyer.
Before selling a car that is still on credit, you also have to pay attention to several things, because taking credit under your hands can take you to legal action!
Notify the Car Sales Plan to the Leasing or Finance
The most important thing you have to do is provide information to the leasing and explain if you are going to sell your car because you are unable to pay the installments and will give the obligation to pay the installments to someone else.
Do not try to take over credit without the knowledge of the leasing. Because you can get caught in the law. The regulation regarding take over is contained in Article 1365 of the Civil Code which reads an act that violates the law and causes harm to others, obliging the person who caused the loss because of his mistake to replace the loss, with threats of imprisonment and fines of up to hundreds of millions.
So, to take over a vehicle loan, you have to be very careful, complete all the necessary documents and most importantly do it in accordance with applicable law. Generally, the files needed are ID cards, NPWP, family cards, proof of installments that have been paid, and others.
After you provide all these documents, the finance or leasing company will take care of all the over-credit processes and wait for them to be used to change the name of the car in the BPKB and STNK.
Inform Prospective Buyers About Unpaid Credit
In addition, you are also obliged to notify the person who will take over your car installments. Don't let him have a bad credit history or bad BI Checking score, so that the take over runs smoothly and you can be free from installments quickly.
Prospective buyers will usually bid on the price you have set for the car. Generally, the average car over credit will be cheaper than buying a new car on credit, but at least the car you want to over credit can be fresh funds to buy a new car or meet your other needs.
Refinancing
The second way you can do to sell your car that is still on credit is by refinancing. Briefly, refinancing is a way to divert your car installments to leasing or other finance.
So, your installments that are not yet extensive will be repaid by a replacement leasing, and then you will pay the installments to a replacement leasing.
This method is effective if you want to trade in a car. With refinancing, the remaining installments in the previous lease will be paid off by the new leasing company.
Meanwhile, the installments that have been paid to the previous lease will be used as a down payment to buy a new car.
For example, A has 12 times paid installments of IDR 3 million per month to leasing X. This means that A has paid a total of IDR 36 million.
The amount of IDR 36 million will be depreciated according to the value of the car, for example a deal at IDR 25 million. Then this Rp25 million will be paid to the dealer as a down payment, and you can pay off the remaining installments of the new car to the new leasing company.
So that refinancing does not harm you, here are some tips for refinancing a car that is still on credit to benefit you.
Make Sure Your Credit Score Is Good
Before you apply for refinancing, check your BI Checking score. Check your score and if something doesn't match, you can report it to the leasing company or bank that gives you credit.
This is because inaccuracies can damage your credit score, which can affect your ability to qualify for a new loan.
Viewing and checking your BI Checking score can also help in tidying up your finances.
interest lease than before
Refinancing to a new lease will also incur interest. To benefit, ensure that the interest on the new lease is lower than on the previous lease.
It would be nice before deciding on a new lease, you have done some research on the new lease.
Then, record the information from interest to maturity date. By doing this you can also compare some leases with others in order to get the best lease that fits your criteria.
Calculate the Funds You Can Get
After getting a new lease, the next step is to calculate the funds you can get from the refinancing. Each lease has a different procedure, so make sure you calculate it carefully.
Don't forget to maintain communication with leasing company in order to get detailed information about the funds that can be obtained.
Prepare the Required Data and Documents
Just like take over credit, you must also prepare all data and documents according to the procedure to complete the refinancing application. This includes proof of monthly installment payments, because this is a determining factor in whether your refinancing will be accepted or rejected.
If previously you were often late in paying your installments, it is likely that your refinancing will be rejected by the new leasing because they see you at risk of causing bad credit. So, don't forget to be disciplined about paying installments, okay?
This is a discussion about tips and how to sell a car that is still on credit. For other interesting information about finance, visit the TheNewbie Blog!
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