Selling car and Settling car finance

joe86design

hi. I wonder if it is possible for me to sell my car and then settle the car finance with the money i receive from selling it. I am with Ford credit/hire purchase. i have found out how much i have to pay to settle the agreement and how long they give me to pay it.

is this a possibility as this would sort my finances out once and for all.

If i do settle the agreement, is that the end?

I have gone over and over the terms and conditions and it say nothing about this.

Thanks
Joe

joe86design

Im sorry if i posted this in the wrong place. i just saw motoring in the title!

Hintza

Talk to them. I'm not sure, but the best way is for the buyer/dealer to settle the finance and you keep the balance (if any). That way then the buyer knows the car is clear, if they leave it to you, tou could take the money and run leaving the car with outstanding finance.

Hope someone comes along to give you a better idea, of correct procedures

Premier_2

Simple answer: yes

More complicated answer: the car is not yours to sell; it belongs to the finance company.
If you wish to sell it, the finance company usually must be informed. The finance company will want the outstanding balance upon sale, usually direct from the buyer - you usually don't even get to see it.
Of course, if the sale price is less than the settlement figure, the finance company probably won't allow the sale unless you pay the balance up front.
If you sell (or part exchange) the vehicle through a dealer, they will usually take care of all this for you (apart from any shortfall, obviosly).
Sorry for the long answer, but basically the finance company have secured their money against the car. If you sell the car and get the money yourself, the finance company has no security anymore, hence why they want paying their money direct.

joe86design

Thanks for this great help!

The settlement fee is less than what the car is worth. I Know a couple of people who i know are interested and are willing to pay the asking price. In this case do ford need anything from me one once a settlement has been paid?

Premier_2

Once the finance has been settled, Ford Credit will usually write to you to confirm the account has been settled in full and that will be the end of the matter

joe86design

Thank you so much.
I feel so much better now there is a way out.

Thanks again!

Hintza

Premier wrote: »

Once the finance has been settled, Ford Credit will usually write to you to confirm the account has been settled in full and that will be the end of the matter

Might be a good idea to keep this and forward a copy to the new owner. Keeps everyone straight.