Selling a car that is still under financing in the Philippines may seem complicated, but it’s entirely possible if you follow the right steps. Whether you need to upgrade your vehicle or free up some cash, you must settle the remaining loan before ownership can be transferred.

In this guide, we’ll walk you through the process of selling a financed car, covering loan settlement, LTO requirements, and transfer procedures to ensure a hassle-free sale.

Can You Sell a Car Under Financing in the Philippines?

Yes, but since the bank or financing company technically owns the car, you must settle the loan before selling.

There are two main ways to do this:

1. Pay off the loan before selling (ideal for a private sale).
2. Sell with Mobee Cars Philippines, where we handle the loan settlement and paperwork for you.

Step 1: Check Your Loan Balance & Get a Bank Settlement Quote

Before selling your financed car, request the following from your bank or lending institution:

1. Statement of Account for Full Settlement – Includes outstanding balance, early settlement quote, and any penalties.
2. Release of Mortgage Process – Timeline for the bank to remove its ownership after full payment.

Tip: If the market value of your car is lower than your loan balance, you may need to pay the difference before selling.

Step 2: Determine Your Car’s Market Value

Knowing your car’s current market price helps you set a competitive selling price.

Check online marketplaces like Facebook Marketplace, Carousell, or Mobee to compare prices. Use Mobee’s free car valuation tool to get an instant price estimate.

Tip: If your outstanding loan is higher than your car’s market price, consider negotiating with your bank or selling with Mobee Cars Philippines, where we handle loan settlements.

Step 3: Find a Buyer – Private Sale vs. Mobee Cars Philippines

Once you know your car’s value and loan balance, you have two options:

1. Private Sale (Higher Price, More Paperwork)Selling privately can get you a better price, but you must pay off the loan first before transferring ownership.

Steps:

1. Agree on a price with the buyer.
2. Collect a downpayment or deposit.
3. Use the deposit to settle the loan with the bank.
4. Once fully paid, obtain a Release of Chattel Mortgage from the bank.
5. Proceed with the ownership transfer at LTO.

Challenges:

1. You need cash upfront to settle the loan.
2. Some buyers won’t pay a deposit without an immediate ownership transfer.

2. Sell with Mobee Cars Philippines (Fast & Hassle-Free)

Selling with Mobee Cars Philippines is the fastest and most convenient option.

Benefits:

1. Mobee settles the loan directly with the bank.
2. We handle all paperwork and ownership transfer.
3. You get an instant offer without waiting for a private buyer.

Tip: Selling with Mobee Cars Philippines eliminates the risk of fake buyers and ensures your loan is settled correctly.

Step 4: Settle Your Loan & Obtain a Bank Release Letter

Once you’ve secured a buyer, the next step is loan settlement.

Pay off the outstanding loan to the bank. Wait for the bank to release the Original Certificate of Registration (CR), Release of Chattel Mortgage (ROCM), and Promissory Note. Process the Cancellation of Mortgage at LTO.

Important: Without this release, the car remains under the bank’s name and cannot be transferred.

Step 5: Transfer Ownership at LTO

After obtaining the bank release letter, proceed with ownership transfer at the Land Transportation Office (LTO).

Required Documents:

1. Original OR/CR (Official Receipt & Certificate of Registration)
2. Bank Release of Chattel Mortgage and Promissory Note
3. Valid IDs of both seller & buyer
4. Notarized Deed of Sale
5. LTO Clearance & HPG Clearance (if required)
6. New Insurance Policy (for the buyer)

Steps:

1. Visit the LTO branch where the car was originally registered.
2. Submit the documents for processing.
3. LTO updates records and issues a new OR/CR in the buyer’s name.

Tip: The buyer must secure new insurance before completing the transfer.

Selling a Financed Car? Mobee Makes It Easy!

Selling a financed car in the Philippines doesn’t have to be difficult. Mobee helps you sell your car fast and hassle-free!

1. Get an instant valuation – Find out your car’s true worth.
2. Sell to trusted dealers – Who can settle your loan directly.
3. We handle all paperwork – Including ownership transfer.

Sell your financed car today! Visit ph.mobeecars.com now!

Final Thoughts

Selling a car under financing in the Philippines requires careful planning. The key steps include:

1. Checking your loan balance & settlement amount.
2. Finding a buyer (private sale vs. Mobee Cars Philippines).
3. Paying off the loan & securing bank release documents.
4. Completing the ownership transfer at LTO.

If you want a quick, secure, and stress-free process, selling through Mobee ensures that your loan is settled while getting the best price for your car.

Need help selling your car? Visit ph.mobeecars.com today!