Selling a car on finance

afk1973

Hi All

We have a car at present (S-MAX) and are discussing our options with said garage BUT they are stalling and stalling "we cant find a galaxy etc etc" even though we have seen 5!! on the website anyway xxxx can we sell the car privately even though it has outrstanding finance????

Any help would be great xxx

scheming_gypsy

you can but if you don't pay the finance company and stop making payments, they'll go after the new owners for it.

harveybobbles

You can sell it private and you could ask the new buyer to pay the finance company direct rather than paying you, for you then to pay the finance company.

first off you'd need a settlement figure.

Flyboy152

scheming_gypsy wrote: »

you can but if you don't pay the finance company and stop making payments, they'll go after the new owners for it.

:wall:

The new "owners" will not have any liability in terms of any moneys owed by the OP. The transfer of the vehicle to another party is not a transfer of the debt.

However, OP, you cannot sell the vehicle without the permission of the finance company, as they are the current owners. They will ask for settlement of any outstanding amounts, before you sell the vehicle.

scheming_gypsy

i didn't say anything about transferring the debt, although it was ambiguous. The car doesn't belong to the OP or the new owners, the car belongs to the finance company until it's paid for; if the car is sold and the finance isn't paid then the car will still belong to the finance company and they'll go after the new owners for 'it'... it being the car.

afk1973

scheming_gypsy wrote: »

i didn't say anything about transferring the debt, although it was ambiguous. The car doesn't belong to the OP or the new owners, the car belongs to the finance company until it's paid for; if the car is sold and the finance isn't paid then the car will still belong to the finance company and they'll go after the new owners for 'it'... it being the car.

Which company or way would be best to sell the car "IT" just to ensure i comply correctly with all bits n pieces again thanks for the help

scheming_gypsy

If the buyer does a HPI check then it'll come back as having finance on it as expected.. so the most honest way would be to tell the sellers that it has outstanding finance and for the buyer to pay the money to the finance company directly - so there is no finance outstanding. Any remaining money would be paid directly to you.

shaun_from_Africa

i didn't say anything about transferring the debt, although it was ambiguous. The car doesn't belong to the OP or the new owners, the car belongs to the finance company until it's paid for; if the car is sold and the finance isn't paid then the car will still belong to the finance company and they'll go after the new owners for 'it'... it being the car.

Not according to Trading standards.

The Consumer Credit Act 1974 gives ‘good title’ to the innocent private purchaser of a car which later turns out to be subject to a claim by a finance company because of a previous, unpaid hire-purchase agreement. This means that the finance company is not entitled to repossess the car from you. Remember, this does not apply to cars which have been stolen, or cars that were subject to a lease or hire agreement

And you can read the legislation that covers it here:
http://www.legislation.gov.uk/ukpga/1974/39/schedule/4./paragraph/22

bigjl

Flyboy152 wrote: »

:wall:

The new "owners" will not have any liability in terms of any moneys owed by the OP. The transfer of the vehicle to another party is not a transfer of the debt.

However, OP, you cannot sell the vehicle without the permission of the finance company, as they are the current owners. They will ask for settlement of any outstanding amounts, before you sell the vehicle.

Completely wrong, the only time you gain good title when buying a vehicle that has outstanding finance is when you buy the vehicle from a dealerahip.

As you are buying from a properly functioning business then yoy can assume good title, the debt would then be the responsibility of the business that sold you the vehicle.

This thread will turn in a slagging match with some saying you get good title and some saying you don't.

The only reason the loan is secured on the vehicle is to ensure the finance company gets paid.

The only time this changes when you buy privately is if you buy the car as a non runner or crash damaged, the act of repairing the vehicle muddys the waters slightly, and you would normally get good title after negotiation.

If you could gain good title without settling the finance then why would HPi exist and why would anybody pay the finance if they could simply "sell" it to a mate and get good title.

bigjl

The above legislation is all very interesting but when it is applied you wilk find that the case will go along the line of "nobody would buy a vehicle without doing a hpi check, therefore it would be reasonable to assume the new private purchaser could reasonably be expected to know the vehicle is subject to a HP Agreement"

Basically that is the way it would unfold in the real world, and no amount of uninformed Googling will change this, it is one thing thinking you know what laws and legislation means but sometimes it isn't that simple.

Remember that i have gained good title of various cars on finance but they were all initially subject to a lien due to unpaid repair bills and good title was only gained after negotiating with the legal owner, the finance company.

Unsecured loans for vehicles stopped years ago, and where last used on motorbikes as far as i know.

Flyboy152

bigjl wrote: »

Completely wrong, the only time you gain good title when buying a vehicle that has outstanding finance is when you buy the vehicle from a dealerahip.

As you are buying from a properly functioning business then yoy can assume good title, the debt would then be the responsibility of the business that sold you the vehicle.

This thread will turn in a slagging match with some saying you get good title and some saying you don't.

The only reason the loan is secured on the vehicle is to ensure the finance company gets paid.

The only time this changes when you buy privately is if you buy the car as a non runner or crash damaged, the act of repairing the vehicle muddys the waters slightly, and you would normally get good title after negotiation.

If you could gain good title without settling the finance then why would HPi exist and why would anybody pay the finance if they could simply "sell" it to a mate and get good title.

What are you on, because it must be some expensive s**t.