Sell Car
What happens if I sell car or other product before repaying loan?
So I had 5 year loan to pay off a car or and then sell the car after 3/4 years what happens to the remaining loan? Can the remaining loan be paid in one go from the the sale of the car or just keep repaying the remaining 1-2 years?
Is it the same for morgages?
Depends on what kind of loan you got. Did you get a personal loan or car finance? if you got a personal loan i.e. from bank etc then you are free to do with the car as you see fit and you are able to sell it and then pay the loan off etc. if it is car finance then until the car finance is paid the car still legally belongs to the finance company and finance must be settled prior to the sale of the car. Some car garages offer to pay the finance on the car when you buy a new one.
So if it is a personal loan then you can sell the car and continue making the payments or pay the loan off.
A mortgage is different. A mortgage is a loan on a property and the property remains in effect the property of the mortgage company until your "loan" is paid. If you sold your house then you would need to pay the mortgage before anything else i.e. mortgage for £80,000 house sells for £100,000 then you get £20,000.
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