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.