Finance and your car
Many people have finance on their cars in the UK and assume that they will be able to get finance here to purchase a car. It is very difficult to obtain finance from a finance house here unless you have a full lifetime contract and a residencia and in most cases a Spanish driver’s licence. Many of the main dealers offer finance but often the paperwork required to obtain this can be very complex.
If you have a good working relationship with your bank it is often easier to obtain a personal loan from them in order to fund your purchase. Generally both banks and Finance houses will require a proforma invoice which a dealer should be able to provide you with.
Once you have the finance you may purchase your vehicle and will continue to pay until the end of the terms of the agreement. Most people think that once they have made their final payment that the car is theirs and they can sell it if required. If a loan has been given by a finance house or main dealer it will have been registered in MERCANTILE in the same way as mortgages etc. As far as Tráfico are concerned this will show as a “RESERVA DOMINIO” and a car cannot be transferred until this is cancelled.
In order to cancel the block this you must obtain a “CARTA DE PAGO” from the finance house; some companies charge for these and prices can be quite high e.g. 100 euros or sometimes more. Sadly you have no choice as without clearing the register the car cannot be sold and successfully transferred. Once you have the Carta de Pago it must be presented in Mercantile in Santa Cruz and three days after presentation the debt/register is then cleared meaning that your car can be sold and successfully transferred.
Some finance houses issue these automatically or clear the loan themselves but those are few and far between. If you have had a personal loan from your bank then this would not apply.
If you require any further information please contact me firstname.lastname@example.org or call 922783828 or 629048529.