Can i Sell with outstanding Car Finance

ClaYuR

Well..first off i dont want to sell..

I'm going tomorrow to an Evans Halshaw dealer with my 55 plate vauxhall astra.

I've had it for 9 months and have been paying £130 per month, set up for 260 months..

I still have around £7,000 to pay on the finance..

Is it still possible to trade it in, for another vauxhall (petrol-diesel) without losing money?

Or, enabling myself to know how i can avoid losing money?

All advice appreciated,
Claire :rolleyes:

flashy

nope, the car is not yours until you have paid the finance company the money outstanding.

If a new buyer does a car check, e..g RAC Check, it will flag up as having outstanding finance.

The only way you can now do it, is either get a bank loan to pay off the car finance, sell the car, get a banger and pay loan off.

Or go to a car dealer and get a deal where they wipe the old finance and add it to the new car.

One reason i will never ever go with car finance companies.

Hope this helps

sjc_2

You can trade it in but they will use the part ex value to pay off the finance first. Is 260 Months correct as in 20+ years to pay off a Car, if so I would say your trade in wouldn't even cover your outstanding debt to include interest.

Have a look at one of the guides to see how much the trade in is and work out your outstanding finance balance and see if they are close, which should give you a rough idea.

ClaYuR

Thanks,

What kind of deal entails wiping the old finance?

Or do you mean, like..adding on the £7,000 i have outstanding to the £8,000 i would pay for a new diesel?

Saying that, how do you get your cars if you don't use finance?
Bank loan?


Is it possible to hand the car (including the finance) to another person?

Say they were willing to take the car & finance payments off my hands?
And how does it work with part exchanges in garages? If you know..

Can you tell i'm female, and blonde?
Haha..

Thanks,

ClaYuR

p.s ..i meant weeks, not months :A

flashy

no worries.

To be honest, I gradually saved enough money to buy a car outright with cash, a car is the second biggest thing you will probably buy in life (behind a house) so you need to be happy.

Trade in:
If you trade the car in at £5000. Say thats all they offer you. Your looking at a new car costing £10,000.

You have £7000 outstanding from last finance deal, you will be charged as follows:

£7000 - £5000 = £2000.

£10,000 (new car) plus £2000 (left outstanding from old) = £12,000.

You will then take a new finance deal out on £12,000 for however many years.

Handing Car over:
I think another person can be nominated to take on payments, you need to check with the finance company in question. (it will be in the small print on the contract)

Hope this helps

ClaYuR

Ah right, ok, thats great..i'm changing from petrol - diesel to save money on Fuel, so, by saving this money, i can stretch the finance anyway, to be happier with my car and hopefulyl with the odd £20 - £30 in my back hipper at the end of the month, doesn't seem alot but hey ho.

£30pcm for diesel rather than £150pcm on petrol seems a better deal to me

Thanks alot,
Hopefully will get on good tomorrow!

flashy

No problem. I would stick with diesel. I made the switch a few years back, due to increased costs and running costs with a petrol. The older a car gets, the better mpg you get with diesels.

Best move ive ever made.

djohn2002uk

ClaYuR wrote: »

Ah right, ok, thats great..i'm changing from petrol - diesel to save money on Fuel, so, by saving this money, i can stretch the finance anyway, to be happier with my car and hopefulyl with the odd £20 - £30 in my back hipper at the end of the month, doesn't seem alot but hey ho.

£30pcm for diesel rather than £150pcm on petrol seems a better deal to me

Thanks alot,
Hopefully will get on good tomorrow!

You think you'll get 5 times the mileage from a diesel? Or a diesel is 5 times cheaper to run?
Now that is a blonde moment

Doozergirl

You can sell a car with finance outstanding.

As long as a buyer knows then they can pay the finance company instead of you. It's better if the finance is less than the car as the finance company will refund you the difference and the buyer is pretty secure.

I bought a nine month old BMW that way - I was happy making the cheque out to BMW finance and I was shown the letter stating the amount to clear it. They put the cheque in the envelope and posted it in front of me. It's pretty common I believe.