Selling A Lease Car on 0% APR

nblyth

I am 18 months through a 3 year lease at 0% with Peugeot and want to come out by selling the car. Can this be done and what is best way to go about selling a lease car to someone ?

Lemonade_Pockets

Do you mean hire purchase?

Lease generally means you are renting it, i.e. it is not yours to sell.

nblyth

It is 3 year payment deal whereby at end of 3 years I either pay it off or give it back having paid half of it.

And no they are not called hire purchase as such.

Leasing is term they use ie you make payments each month and as above you either hand back of pay remainder owing.

Hire Purchase is when you pay amounts each month including interest and at end of term it is yours. Under a lease this does not automatically happen.

Lemonade_Pockets

Ah well since you know it all i'll leave you to it.

For future reference "leasing" covers a multitude of sins. You need to narrow it down so people can give you the appropriate advice.

Also what you have described still sounds like a PCP which is technically (contary to popular belief) a Hire Purchase agreement.

cclarke12

I would think that the only way to sell it (if selling privately) is to establish a settlement figure with the finance company, pay it off yourself and then put it up for sale. No-one is going to buy it with finance still outstanding on it (the PCP arrangement you have is still a finance arrangement), and the fact you have finance on it would show up as soon as someone did an HPI check. But I am not 100% sure so I am sure there are others that can advice definitively.

nblyth

Thanks CClarke for advice - someone I know said they knew a friend who did it and they dont know how they did it. I agree it would show up on HPI check but would be honest and ask person buying to make money payable to Peugeot and not me of course. I would pay it off myself first if I had the money of course which I don't.

motorguy

nblyth wrote: »

Thanks CClarke for advice - someone I know said they knew a friend who did it and they dont know how they did it. I agree it would show up on HPI check but would be honest and ask person buying to make money payable to Peugeot and not me of course. I would pay it off myself first if I had the money of course which I don't.

You basically have a hire purchase agreement with a part deferred to the end of the three year term.

Summarising, if you advertise the car for sale, then yes, you would have the purchaser make the cheque payable to the finance company.

There wouldnt be a problem with that.

Also, check out your finance agreement, you may well find that there is a 50% clause, whereby once you've paid 50% of the 'total' amount of the agreement, you can hand it back.

plane_boy2000

nblyth wrote: »

It is 3 year payment deal whereby at end of 3 years I either pay it off or give it back having paid half of it.

And no they are not called hire purchase as such.

Leasing is term they use ie you make payments each month and as above you either hand back of pay remainder owing.

Hire Purchase is when you pay amounts each month including interest and at end of term it is yours. Under a lease this does not automatically happen.

You have a PCP - not a lease, which is basicaly hire purchase with a baloon payment at the end. The only way to get out of it is to either hand the car back (subject to the 50% rule) or settle the outstanding balance. Unless you put down a large deposit I imagine that 18 months in the car has suffered the worst of its depreciation, so in reality you probably owe more than its worth. (negative equity)

If it was a true lease (which it isn't) you may have been able to transfer the balance.

A good starting point is to call PSA finance and ask for a settlement figure and work out if the car is worth that much, but be prepared for disapointment - Peugeot's can be heavily discounted and depreciate quickly so if you didnt get the right deal up front you may be stuck