What Happens If I Sell My Van And Its Still Under Hire Purchase?

newhope_2

Hi,

I am self employed and have got a van under hire purchase agreement, we were just about keeping our heads above the water with payments, bills , mortgage....struggling like everyone else... and i'v knackered my arms so now cant make the payments. If we give the van back we will still be paying for it but have no vehicle which seems absurd to me, however its worth 6 grand, so what happens if we sell it to release the capital but continue to pay the monthly payments?

would i have to go to court and how would they know that iv sold the van? my girlfriend says it'll show up on the DVLA when i sign the van to someone else, but im not convinced, i really want to sell it to help us just for a bit untill my arms are better and i can buy another van from the money of the hire purchase'd one?

i hope iv written this clearly and look forward to your responses!

newhope

harveybobbles

You could in theory keep up the payments and explain this to the buyer, but the problem is when they come to sell it, they may not have the gift of the gab to explain this to the person they are selling it to. And it will all end in a rather big mess...

If you've knackered your arm, why not tell this to your finance company and if you took out payment protection which covered accident cover, then this will make the payments on your behalf.

Or get a settlement figure, sell it, but agree in writing with your buyer that you will be paying the finance off.

Another way - If your settlement is say, £5000 and you sell the van for £6000 ask you buyer to pay the £5000 to the finace company and give you the remaining £1000.

Quite a few ways round it, but none are easy lol.

vaio

Until you finish paying the HP you don’t own the van so it’s not yours to sell and this will show up on HPI.

Your buyer has to pay the finance off and give you the rest. No buyer would pay you and trust you to carry on making the payments.

Depending on the deposit you paid and how long you’ve had it etc you might also find that you owe more than the van is worth although I think there is also something that says if you have paid half the payments you can just hand the van back to the finance company and walk away.

Conor_3

newhope wrote: »

Hi,

I am self employed and have got a van under hire purchase agreement, we were just about keeping our heads above the water with payments, bills , mortgage....struggling like everyone else... and i'v knackered my arms so now cant make the payments. If we give the van back we will still be paying for it but have no vehicle which seems absurd to me, however its worth 6 grand, so what happens if we sell it to release the capital but continue to pay the monthly payments?

would i have to go to court and how would they know that iv sold the van? my girlfriend says it'll show up on the DVLA when i sign the van to someone else, but im not convinced, i really want to sell it to help us just for a bit untill my arms are better and i can buy another van from the money of the hire purchase'd one?

i hope iv written this clearly and look forward to your responses!

newhope

It is not your van to sell in the first place. What you're doing is basically illegal. If you were unable to meet the payments, the finance company would seize it from the person you sold it to. Then what?

And if the buyer does a HPI check, which anyone with any sense would do, it'd come up as on finance and 99.999999999% of people will walk away. Only a stupid person would buy a vehicle with outstanding finance on it.

standupguy

What you are proposing is illegal - it is conversion of property or selling something you do not own or have title to.

If you have equity in the van - best to sell, pay the Finance company and use the equity.

If you have no equity then consider voluntary terminating the agreement if you have paid half the hp price on the document - that way you do not gain from extra money but you do lose the monthly payment

AdrianHi

harveybobbles wrote: »

Another way - If your settlement is say, £5000 and you sell the van for £6000 ask you buyer to pay the £5000 to the finace company and give you the remaining £1000.

I know of someone who does this on a regular basis (average every 9 months). Sometimes he is in negative equity which means he agrees a sale, the buyer pays the finance company and he pays the remainder to the finance company both putting their payments into the post at the same time.
Not all buyers will feel comfortable with this so you may well find it easier to get an unsecured personal loan, pay off the HP and then sell the van to clear the loan.

newhope_2

***UPDATE***

my girlfriend spoke with the finance company and they have said we can sell the van privatley but if the buyer asks if there is finance remaining we have to show him/her the reciepts wev got and write a letter explaining that we will continue to pay the finance. Or they will sort out a payment plan with us and up the finance from 3 years to 5 - or we can take the van back to the dealer and request a smaller van with smaller finance - all are more attractive options than giving the van back.

HOWEVER, because i cant drive my girlfriends been driving the van, last night we took the dog for a walk and basically she broke the gear box, absolutly !!!!!!ed it, i cant fu*king believe it!

girls ARE the worst drivers no matter what anyone says, fu*king joke

Conor_3

Sorry but you can't break the gearbox on a single trip out. You might want to look at the driving style of the person who has been driving it the most since you had it...

newhope_2

well that'd be my girlfriend, iv not been able to drive for about 4 months, haha and your right, iv told her time and time again about how she does drive, pulling up to stop she does something with the clutch and leaving it in gear (honestly shes tried to stop in 4th before!) ...but what she tells me is shut up because she knows how to drive and will i stop having a go at her, i told her shed break it