Car with outstanding finance on it

andy1975lanc

Morning folks,

Firstly apologies if this isn't the right place to post this thread, couldn't find anywhere else it would sit.

My other half has a car that we no longer need, it's sitting on the drive doing nothing apart from costing money in insurance, tax and of course the car finance. The problem we've got is that the sale value at our local car dealer is about £800 shy of what we owe on it and obviously we couldn't sell it privately as anyone worth their salt would do an HPI check and see there is outstanding finance and not even bother coming to see it.

Any thoughts as to what we can do? (For info my credit rating is on the floor due BR and my other half's is classed as poor)

Cheers in advance

Andy :beer:

Tixy

How much is the tax, insurance & car finance costing you a month? how many months does it take to make up the £800 shortfall? Not that many I'd guess. I'd suggest you get rid and pay up the £800 shortfall.
How far through the agreement are you? Have you contacted the finance company about handing it back, what are their figures like for any shortfall?

If you do decide to keep it get a refund on the tax and declare it SORN so you can also cancel the insurance. At least then you'd reduce what its costing you.

pongowaring123

First things firsts, put it up for sale for a price that would cover the outstanding finance. See how you got on, just because a local garage priced it £800 less than you require it doesn't mean somebody will not pay what you need.

Unfortunately, if the finance is HP the car is not your's too legally sell until you've paid the final payment or cleared the finance so you would need to find the shortfall if you sell the car for less than you owe.

Best of luck

Common_Sense_2

most companies will allow you to sell it as long as they get teh full settlement within a week of you selling it. - if you go down this route, be upfront about it with any possible purchasers.

As tixy says - call the Company and find out how far you are into the contract. you may have paid over half the total amount payable and so will be able to hand the car back.

CH27

What sort of finance is it?
Can you hand the car back after a certain point?

andy1975lanc

Hi folks!

Thanks for all your replies, hugely appreciated.

We've only had the car for about 8 months into a 48 month deal (I know, we should never have got it in the first place, trust me we kick ourselves every time we think about it!), so don't think we'll be able to hand it back. I suppose the best course of action as Tixy and Common Sense 2 say is to give the finance company a bell and see what they've got to say.

Plus Tixy, you could be onto something there, there's no need to keep paying the insurance when we don't drive it, never thought about SORN-ing it, cheers!

Unfortunately CH27 it's just a straight car loan secured on the vehicle, not one of these guaranteed payment things where you can hand it back.

Tixy

Actually just had a though might just be worth checking if there is anything in the finance contract that says it must be insured (eg in case of theft, malicious damage whilst on your drive). Many years since I bought a car on finances so worth checking.

Common_Sense_2

the terms of the agreement should state that the car needs to be kept insured (after all it's the finance companies car)

jonjamie1970

Dont cancel the insurance, what if it catches fire, what if someone steals it or crashes into it, dont go down this route please !

jonjamie1970

On another note, I sold a car which still had finance on it, all you do is state this, when the buyer comes, he pays the finance company what you owe, so call them and he can then speak to them and confirm the settlement figure, he arranges payment over the phone, you then speak with the finance company and confirm the loan has been cleared and release the vehicle, its done all the time.

immoral_angeluk

Is it Hire purchase or an unsecured loan?

Also be aware the law has changed now, even off road cars must have insurance by law.