selling a HP car to a dealer

GooliesOfFire

How does this thing work. My wife has her car on Hire Purchase with last two payments to go and she would like to get rid of the car quicker before she will need to MOT and tax it.

Toyota Financial rep said it's fine to sell it to a dealer and they sent her a letter with a settlement figure.

But how exactly does this process work? Will the dealer give her money and she settle the debt or does dealer contact her her HP provider and settle the debt?
I imagine the settlement needs to be done by the dealer or her over the phone while she is at the dealers before she can sign any paperwork, because afaik she's not the owner until the debt is fully paid. Or does it work differently?

crazyguy

They normaly pay the hpi direct with a cheque,

Car value say £5000 , money owed hp say £3000 and you get a bank credit of the remaining £2000

Make sure she has an up to date settlement letter all though they will check this at the dealer you are looking to sell it to.

GooliesOfFire

crazyguy wrote: »

They normaly pay the hpi direct with a cheque,

Car value say £5000 , money owed hp say £3000 and you get a bank credit of the remaining £2000

So when exactly is all the paperwork signed and the car taken by the dealer? Is it when the cheque clears and HP provider confirms the settlement?

I've never had a HP car myself. I prefer to buy what I can afford. So 2 years ago I bough a 04 reg banger for cash haha. I don't know how Hire Purchase works in this case. I always was under the impression that you cannot sell a HP car.

crazyguy

No the dealer normaly makes you an offer of x amount of pounds and then they have the settlement figure that normaly stands for approx 2 weeks in most cases, you take your car in sign it over and they inturn pay you normaly by bacs and then settle the hpi via a cheque shortly after.

GooliesOfFire

crazyguy wrote: »

No the dealer normaly makes you an offer of x amount of pounds and then they have the settlement figure that normaly stands for approx 2 weeks in most cases, you take your car in sign it over and they inturn pay you normaly by bacs and then settle the hpi via a cheque shortly after.

Thanks. We will need to go to a dealer in two cars just in case they make us an offer then.

crazyguy

Yep , I would ring them and get an estimate first and then if your happy enough then take it in or move on to the next dealer.

Make sure you dont use webuyanycar.com as they are thieves

GooliesOfFire

Cheers mate :beer:

crazyguy

You will find the independent ones are better and give you more !