Need to sell my car.

teaser77

Hi everyone,posting for the first time.Would apprecciate some advice on needing to sell my car.The car is worth around £13000,i owe £8500 finance on the car.Someone mentioned about a bridging loan to pay off my finance so the car was clear to sell then paying loan off when the car is sold.Any helpful hints anyone????????:beer:

nichere

hi teaser77
i recently got rid of a laguna i had on finance and could not afford the payments anymore and asked the finance company for a half and half settlement figure?
is this available on your finance agreement?
basically you are paying half the amount you owe for the car and giving it back to the finance company
i found this my best option and had no problems of the finance people with this although some people who have tried this before have had some problems with the finance people but it is your right to do this.
someone may come up with some other options but i hope this may be of some help to you

emma0787

My boyfriend managed to sell his car whilst there was still finance owed on it. He sold the car and used the £7000 he got to pay off the £5000 he still owed and put the other £2000 towards his new car.

I think it's ok so long as the buyer doesn't do a hpi check? Or am I wrong...?

JonathanA

Are you trying to sell privately or back to a dealer? If the former, then trying to sell with outstanding finance probably won't work, and it is against the terms of your agreement I would think. if you're selling to a dealer, then they will normally settle the outstanding balance on your behalf and pay you the difference.

asandwhen

emma0787 wrote:

My boyfriend managed to sell his car whilst there was still finance owed on it. He sold the car and used the £7000 he got to pay off the £5000 he still owed and put the other £2000 towards his new car.

I think it's ok so long as the buyer doesn't do a hpi check? Or am I wrong...?

I dont think anyone would buy a £13,000 car without doing a HPI check - I am very suprised that the person that purchased your boyfriends car didnt do one - VERY RISKY!! - I almost purchased a car a few years ago for £3000 that was an isurance right off - I wouldnt have known if I didnt do the check.

AMILLIONDOLLARS

Insurance right offs are ok to buy secondhand, if they are correctly repaired. A car maybe be written off by the insurance company because it is uneconomical for them to repair it so its cheaper for them to pay out the claim, it doesn't mean that the car is not road worthy and after repair the car is normally inspected and given a road worthy certificate and it can go back on the road.

Going back to selling a car under finance. You have to be very careful if you handback the car, a lot of dealers don't tell you that this does effect your credit rating and a bad mark maybe placed in your credit file. Do check before you go down this road the long term implications of you getting credit again.

AMD

simondando1981

Hi,

I work for a main dealer so I hope this helps:

I would not advise taking out a bridging loan. Why pay extra interest when you don't need to!!??

Here is a couple of options for you:

1) Sell car back to a dealer. Yes this will mean a lower price for it but they will settle you finance for you and pay you the equity. Quickest option.

2) Part Ex the car - the above will still apply eg - 13k part ex. 8500 settlement leaving you a 4500 deposit for your next vehicle.

3) Early termination. If this is a motor loan agreement then you will have a termination right that if you have cleared the 1/2 way stage in the total amount payable, you can hand the car back to the finance company. If you have not got to the 1/2 stage, you will need to pay up to it in a lump sum. This option does not affect your credit file but a handback will show on your file. If you agreement does not have 1/2 and 1/3 (repossess option) options, it is a personal loan and not a finance agreement on the car. If it is a loan, it will not be registered on HPI anyway.

4) Sell privately. So what if the HPI shows finance? As long as it is paid off before title is passed to the new owner, there's no problem. Make it very clear that there is outstanding finance and that the funds will need to be paid to the finance company before you can release. Your company will provide you with a letter saying that they will no longer have a financial interest in the car.

I hope this helps. Any questions, please ask!:D

blue_haddock

Easiest way to get round this is to sell the car privately and when the buyer comes to pay they phone the finance company and either pay the remaining finance off over the phone with a debit card or get the details to send them a cheque. The remainder of the cash goes to the seller.

Buyer takes no risk as he knows the vehicle is paid and the seller gets best price for the vehicle.

emilie03

i wish to do the same thing, i have a car loan with a finnance company have paid 1/2 back over £4k, any ideas on what a settlement offer is around, i wish to pay loan off early and keep the car, or hand car back with payment?

thanks

seven-day-weekend

I never realised it was so difficult to sell a car! Having said that, for the last twenty years we have not had a loan for a car and I expect the rules have changed a lot since then. If I remember rightly, the last time we sold one with money still outstanding on it, we just paid off the loan with the money. But it doesn't seem that easy these days!

Good luck with whatever you do, OP, sorry I have no advice, just wanted to wish you well.

seven-day-weekend

I never realised it was so difficult to sell a car! Having said that, for the last twenty years we have not had a loan for a car and I expect the rules have changed a lot since then. If I remember rightly, the last time we sold one with money still outstanding on it, we just paid off the loan with the money. But it doesn't seem that easy these days!

Good luck with whatever you do, OP, sorry I have no advice, just wanted to wish you well.