Clear car finance loan

bobnov77

Good Evening
My fiance has an existing car finance loan which we are looking to clear off by selling the car, reason being bambino number two is hear and a 3 door car with two kids in the back seat is a back breaker. What we plan to do is sell the car but the settlement figure is slightly higher than the price we would probably get by selling. The car is worth roughly £8000 outstanding credite balance is nearer 10.000. Thats not a problem. My problem is how does the system work when it comes to clearing £8000 from a outstanding balance of £10,000? Obviously we would keep up the payments for the outstanding £2000 until its cleared but i have no idea how this would work? i.e you sell the car to someone else put the sale of the car money to your loan and pay the rest off?? in theory it sounds ok but I bet its not as easy as that? Can anyone advise of what to do? or has anyone been in a similar position. At the end of the day a new car is required (4 doors this time) but we dont want to trade it in for a dealer and finance company to add the difference on top of another finance deal to another car. We would rather sell, pay the sale price to the finance company, continue to pay the rest of the outstanding finance until finished but during that period we wnat to get another car with lesser monthly payments but more doors??? We havent got a clue where to start??

Thanks in advance for any advice.

t508

Is it a Hire Purchase agreement we are talking about or a personal loan. refer to your agreement to be totally sure.

NeverEnough

If the car is on HP you cannot sell it as it is not yours to sell. If it is financed another way via a loan, then it will be different. Some Finance companies will allow you to sell if you are upfront with them and the buyer and they will release the vehicle once the buyer (usually) settles the finance directly. You would need to pay any difference in and settle it at the same time. Check your paperwork to clarify what kind of finance you have for the car. If its just an unsecured loan you could sell privately and pay off the loan as per the agreement. If its HP it may be best to look at a dealer part exchange, as registered motor dealers will be able to settle outstanding finance on a car and arrange purchase of a different one.

lawrie28

You will need to pay the the £2k difference to get out of the agreement.

serverking

If your prospective buyer were to do an HPI check on the car, the outstanding finance would be flagged up on it

You could go for a runabout like this instead:-

http://atsearch.autotrader.co.uk/uvl/popup.jsp?currentaction=searchresults&e2w=105581&sort=5&did=105581&partner=TMG&postcode=rm78be&max_records=200&configfile=http://dealerservices.autotrader.co.uk/dealers/105581/105581_config.xml&dropdowntype=uvl&e2w=105581&miles=1500&csslocation=http://dealerservices.autotrader.co.uk/dealers/105581/105581&id=201113383198993&distance=0
you might want to take a battery with you - when I went to view it around xmas it didnt start...

bobnov77

serverking wrote: »

If your prospective buyer were to do an HPI check on the car, the outstanding finance would be flagged up on it

You could go for a runabout like this instead:-

link removed

you might want to take a battery with you - when I went to view it around xmas it didnt start...

LOL....I liked that one you might be right and head down that route! I think we will go discuss things with a dealer and take it from there. Thanks for all respones.