I need to sell my Hire Purchase car, any advice? ...

[bobbarley]

Like all the people on here, I'm trying desperately to sort of finances out. My fianc!e and I want to buy a house, so that means me selling my car.

I bought the car is January 2005, it's a 2005 54 plate Citroen C2 VTS. The car was bought for £12,000 on 4 years finance. I'm making monthly repayments of about £253 and there's around £4,500 left to pay on the car. I believe the car to be worth around £6,000.

I need to sell the car now to clear the debt, the problem is I can't sell it until the finance is paid off, otherwise it isn't HPI clear. Obviously I don't have the money to pay off the car, hence why I'm trying to sell it. You can see the viscous circle.

Can anyone offer me some advice as to how I can get rid of the car? I don't want to terminate the HP agreement as I want the profit from the car to put towards a deposit on a house, but I can't afford to take out a loan to pay off the car, or put it onto my credit card, because the interest I'd have to pay would be stupid.

Thanks in advice everyone.

[CLAPTON]

I have no idea whether or not you will be able to sell the car for 6,000 hence making 1,500 but assuming it takes no longer than two months to sell, the amount of interest won't be too bad.
For example, if you could raise 4,500 on a CC at 25%, then amount of interest for two months is about £188. Obviously if you sold it quicker or raised money at a lower rate then the interest would be less.

[bobbarley]

Sadly I think my old two options are going to be paying it off on the credit card, or getting out a small loan and hoping my credit rating is good enough for a low 6.9% rate

[Eager_Elephant]

HI bobbarley,

Unfortunately I think you are hoping for the impossible. It is illegal to sell a car whilst HP is outstanding as it is not your car to sell.
I suppose if a gullible person came to buy the car and did not have a HPI check done and gave you the cash then technically you have sold the car, have the cash and still have the Hp.

Obviously I am not recommending this. The only way to sell a car with Hp on is to get written permission from the HP company and a balance outstanding. When someone comes to buy the car they could write a cheque or make a BACS payment to the HP company and then give the rest to you in cash, cheque, whatever. (Letting them take the car only when the cheque's have cleared).

I know you won't have as much money for a deposit but at least you don't have a HP and the £253pm can be saved towards a deposit - is there a reason for being in such as rush.

Just remember an offer of a mortgage is less any regular commitments you have so better to have paid all debts back first.

EE

[globalds]

Why not put it on a CC and then do a blance transfer,after a couple of weeks that would be about £90.00 at 2% transfer fee and then you have between 12 and 18 months to clear the debt at 0%

[bobbarley]

If push comes to shove, I am within my rights to insist the finance company take the car back off me? I've paid more than 50% of the value of the car, and I'm sure it's part of Hire Purchase law that once you reach 50% or more they have to accept the goods back?

[CLAPTON]

It all depends upon how much the car is worth really whether its worth raising the money to pay off the HP then sell it and repay the debt.

Anyway for details of returning the car see this :

http://www.direct.gov.uk/en/MoneyTax...rs/DG_10013226

[bobbarley]

Many thanks!

[katypetal]

Thanx from me too!!!

I'm in a similar situation too!

[Baron_Greenback]

quite a few of the large used car dealerships with take it off your hands and settle the hp directly, although you won't get as much from a dealer as you would in a private sale.

[poppy10]

Surely the car should be worth more than £6000? You bought it for £12000 just 2.5 years ago - even Citroens don't depreciate that quickly?:confused:

[rog2]

Originally Posted by poppy10

Surely the car should be worth more than £6000? You bought it for £12000 just 2.5 years ago - even Citroens don't depreciate that quickly?:confused:

Unfortunately they do, poppy. Also, if you sell a car privately, you do not, usually, get as much as a dealer would get, but then again you do not normally have to provide warranties/service etc.
That said, a dealer is in business to earn money, and will purchase a car for as LITTLE as possible, in order to sell it for as MUCH as possible.

[DontDoDebtKids]

Originally Posted by Baron_Greenback

quite a few of the large used car dealerships with take it off your hands and settle the hp directly, although you won't get as much from a dealer as you would in a private sale.

I sold my car with HP loan outstanding back to the dealer I bought it from and they sorted out the HP loan. Didn't get as bad a price as I thought I would, either.