Selling a car i still owe finance on?

happytails

If i sell my car for more than i owe on the finance then pay the finance off the car that day/next day then is that ok? Not sure if there was a rule on selling a car you dont actually own outright?

Thanks
Sarah

bazster

If you don't own it you can't sell it, and if you go through the motions of doing so then you will be defrauding the buyer, because they will not own it.

BJV

It will depend if the finance is linked to the car, e.g hire purchase in which case you are on dodgy ground. As the car is not legally yours until you have made the last payment and as such it is not yours to sell.

Also why would the next owner want to buy a car that still has finance on it?

If it is a personal / bank loan that you have then there is no connection to the car and you can do what you want.

fivetide

Best way is either trade in and the dealer will sort or be honest with the buyer and have them pay the finance off and give you the difference. That way they know it is cleared.

If they drive off and it is stolen that night then the insurance would pay the finance company not the new owner which clearly isn't fair.

5t.

jaydeeuk1

Most buyers will be instantly put off by the word finance. If you tell the finance comp your intentions, they will send through a final settlement figure. You'll either need to pay this off first, or the buyer will need to pay it, and the remainder if any to you. No way should you expect the buyer to hand you the cash first for you to pay it off.

happytails

jaydeeuk1 wrote: »

Most buyers will be instantly put off by the word finance. If you tell the finance comp your intentions, they will send through a final settlement figure. You'll either need to pay this off first, or the buyer will need to pay it, and the remainder if any to you. No way should you expect the buyer to hand you the cash first for you to pay it off.

I owe £4700 on it so im guessing i could sell it for this and get the buyer to directly pay Toyota finance. I just want rid of it and the finance so i can start a fresh and buy a cheap car outright. i need a 7 seater and to p/x would put me in a worse position

jumperjohn

You can sell your car. Inform the finance company and gain a settlement figure. Inform the new buyer what is owing and they can pay the hp company monies owed. Nothing different as to what a garage would do.

Looksguywalker

jumperjohn wrote: »

You can sell your car. Inform the finance company and gain a settlement figure. Inform the new buyer what is owing and they can pay the hp company monies owed. Nothing different as to what a garage would do.

....and if the new buyer takes the car and doesn't pay the outstanding HP where does that leave the seller?

jumperjohn

Looksguywalker wrote: »

....and if the new buyer takes the car and doesn't pay the outstanding HP where does that leave the seller?

I don't want to go into the fine detail but one would presume that the buyer rings the hp company and pays and upon a successful completion of the payment the buyer takes the car.

27col

jaydeeuk1 wrote: »

Most buyers will be instantly put off by the word finance. If you tell the finance comp your intentions, they will send through a final settlement figure. You'll either need to pay this off first, or the buyer will need to pay it, and the remainder if any to you. No way should you expect the buyer to hand you the cash first for you to pay it off.

Many years ago I went with my son to buy a car that turned out to be on finance. I seem to remember that we went with the seller to a local office where the car was paid off and we got the paperwork while we waited. It all worked well, but I am pretty sure that I would not do the same again.

AlexisV

If there's outstanding finance it will appear on a text check report won't it?