Can I Ship My Car Overseas if It’s Not Paid Off?

So you’ve decided to move abroad but have a car loan here in the States that you’re still making payments on Car Shipping Seattle. Can you take your vehicle with you overseas or do you have to sell it first? While shipping a car internationally with an outstanding loan adds some complications, it is possible in many cases. Let’s take a deeper look at the logistics and things to consider.

Check Your Loan Agreement

The first step is to carefully review the terms and conditions of your auto loan. Some lenders explicitly prohibit shipping a vehicle out of the country while the loan is active. Others may allow international transport but require certain stipulations be met.

Look for any clauses mentioning:

• Restrictions on where the car can be located or titled
• Requirements for additional insurance when moving the vehicle
• Stipulations if you are relocating long-term rather than short-term

Pay close attention to definitions of events that would constitute default, such as failure to maintain comprehensive insurance. International shipping may trigger some of these even if temporarily.

Communicate With Your Lender

Talk to your lender about your relocation plans and proposed timeline for shipping the car. Explain exactly where it will be located and for how long. Ask them to clarify in writing any special conditions or approvals needed on their end to allow international transport Car Shipping Seattle.

Some lenders are accommodating of short-term expat assignments but not permanent moves. Others may require the loan to be paid off in full before signing off. Knowing their stance upfront prevents surprises later.

Consider Refinancing

If your current lender won’t budge, look into refinancing the loan with another financial institution. Some lenders cater specifically to international clients and will permit shipping a vehicle abroad as long as certain insurance and storage requirements are met.

Refinancing has benefits beyond gaining shipping approval – you may qualify for a lower interest rate too. Just be sure any potential refinancing fees don’t negate interest savings given your loan payoff timeline.

Maintain Proper Insurance Coverage

International shipping will likely require specialized, and often costlier, insurance policies. Lenders expect continual coverage on financed vehicles at all times and places Car Shipping Seattle.

Research requirements for:

• Temporary import/export coverage in destination country
• International transit insurance while vehicle is in transport
• Collision and comprehensive policies after arrival overseas

Provide proof of insurance policies satisfying all conditions to your lender ahead of the move.

Arrange For Overseas Storage

Lenders want assurance the vehicle will have a safe, legal place to reside once abroad. Arrange overseas storage whether keeping it yourself or loaning to friends/family.

Ideally get written confirmation of:

• Secure, indoor/outdoor parking location details
• Contact info for storage owners in case lender needs access
• Permission to temporarily store there as stipulated in loan terms

Ship The Vehicle Professionally

Using an experienced car shipping company takes the stress out of international transport logistics. Reputable firms are familiar with customs regulations and lender requirements worldwide.

Many provide door-to-door service including:

• Preparing vehicles for shipping
• Booking container space on commercial vessels
• Clearing customs at origin/destination ports
• Final delivery upon arrival overseas

Ask for lender approval forms to have the shipper act as their agent during transport. Stay in close contact with estimated arrival dates, too.

Consider Selling The Vehicle

If shipping complications or costs are too great, selling your car privately or to a dealership may be simpler. Just be sure:

• Payoff amount due at time of sale covers any penalties/remaining interest
• Lender provides a letter acknowledging loan closure/satisfaction
• Title is transferred in your state before departure

While an emotional hassle, selling eliminates risk of underwater loans or issues storing a financed vehicle long-term abroad.

Key Takeaways

Shipping a car internationally while a loan is outstanding adds red tape but can be done given thorough planning and lender communication. Get all conditions and approvals in writing upfront to avoid problems down the line. Maintaining proper insurance and arranging secure temporary storage are musts too.

Weigh the logistical hassles against costs of paying off or selling the vehicle first. With diligent preparation, you can hopefully bring your automobile along on your overseas adventure! Just be sure your lender is on board with the whole process.