How to Sell a Car with Outstanding Loan – What You Should Know

Selling a car with an outstanding loan in Malaysia can be tricky, but it’s definitely possible. Whether you're upgrading, downsizing, or simply want to get rid of your vehicle, understanding the right steps can save you time and hassle. Here’s everything you need to know to sell your car while it’s still under loan.

1. Check Your Outstanding Loan Balance

Before listing your car, contact your bank or financing institution to find out the remaining balance on your car loan. This is crucial, as you need to settle the loan before transferring ownership to a new buyer.

2. Choose the Right Selling Method

You have multiple options when it comes to selling a car with an outstanding loan:

1. Sell to a Dealership: Car dealers often assist in settling the loan and handling paperwork.

2. Sell to a Private Buyer: You must clear the loan before transferring ownership.

3. Sell to an Online Platform: Selling your car online through platforms like Motorist Malaysia can simplify the process and offer competitive prices.

3. Settle the Loan or Arrange Loan Transfer

1. If you fully settle the loan, you’ll get a release letter from the bank, allowing a smooth ownership transfer.

2. If the buyer wants to take over the loan, they must qualify for financing from the bank.

4. Handle the Paperwork

The necessary documents include:

1. Car grant (Geran Kereta)

2. Settlement letter from the bank (if loan is paid off)

3. Buyer’s loan approval (if applicable)

4. Insurance Malaysia transfer

5. Maximize Your Car’s Value

To get the best price when you sell a car online, consider these tips:

• Get a free car valuation on Motorist App .

• Maintain your car’s service records.

• Ensure road tax and insurance kereta are up to date.

• Check traffic camera Malaysia records for any outstanding summons.

6. Consider Scrapping Your Car

If your vehicle is old and hard to sell, you might consider a scrap car option instead. Many dealers provide cash-for-car services for vehicles at the end of their lifespan.

7. Be Aware of Petrol Price Fluctuations

Malaysia petrol pricechanges may impact car demand, especially for fuel-hungry vehicles. Selling at the right time can fetch you a better price.

Sell Your Car Hassle-Free with Motorist Malaysia!

To make the selling process easier, download the Motorist App today! Getinstant car valuations, hassle-free paperwork, and a seamless selling experience.

Download Motorist App Now

Read More: How to Avoid Scams When Selling Your Car Online

Download the Motorist App now. Designed by drivers for drivers, this all-in-one app lets you receive the latest traffic updates, gives you access to live traffic cameras, and helps you manage vehicle related matters.