Selling car - declare finance in the ad or not?

thehappybutterfly

I'm selling my car which was purchased on a Personal Contract Purchase deal. This expires at the end of this month and I have to either hand the car back or clear the finance by 31st October.

I've chosen to sell the car privately but will have to sell to a dealer or WBAC if I can't get rid.

I've got it on Gumtree, on the noticeboard at work and on Autotrader. I'm selling it at a fair price - certainly lower than you'd pay to a dealer.

ETA : I should say that I've had one enquiry. And that's it.

My question is should I declare in the ad that there is o/s finance on it or leave it until I have a potential buyer? I don't want to put people off by mentioning finance but I'm worried that by omitting it, if anyone does an HPI enquiry, they'll be suspicious as to why I've not mentioned it.

What do you think? I'm getting desperate to sell as I have to clear the finance and cover the cost of the banger we've just bought so I need a minimum amount which I won't reach if I go to a dealer/WBAC.

forgotmyname

I would wait until you have a buyer phone you. Then explain its your contract lease car and the price they said you can buy it for seemed cheap compared to price guides.

If it doesnt sell it goes back to find the deposit on the next one.

If your not getting calls them its probably too dear.

It needs to be a lot less than a dealers prices. Which are also open to a bit of a haggle remember. A £5000 car wont usually be sold for £5000.

I would want at minimum of £500 off.

Also a car on finance will put a few buyers off. Some may see it as a desperate measure to get some money and offer pennies.

thehappybutterfly

Well I had it at about £1000 less than a dealer. I've just dropped £600 off it to it's now on a par with what's on Ebay but lower than on Autotrader. The ad should update later tonight so fingers crossed we get some interest by Saturday when we'll need to take it to a dealer.

Thanks for the advice re finance. I'll not add it to the ad.

colino

I think you should make reference to the o/s finanace and have the paperwork from the company agreeing the settlement and how and where you can quickly dispense with it. I don't think any private buyer will think twice about buying it if there is a further, unexpected hurdle to cross. There is too many alternatives out there.
Trade will come and seeing you are desperate, screw you down, if it's worth buying, even more.

fivetide

If it is only just now "on a par" with ebay after a £600 drop then there was your answer as forgotmyname said.

Given there are hurdles to jump over when buying your car it needs to look cheap (not too cheap of course) compared to the others.

As said, loads more out there. On ebay too, people are pricing you up against auctions for cars that might not be in great nick.

Jamie_Carter

How can someone do a HPI check without the registration number?

Don't mention it in the adverts, but be open with any potential buyer, that you are going to pay of the finance company with the money you get for the car.

I would sell through Autotrader if I were you.

Paperbird

To be honest if a seller said pay me and I'll pay off the finance I would walk away.
I'm sure the OP is as honest as the day is long but there are too many out there that are not for me to risk it.

Jamie_Carter

Paperbird wrote: »

To be honest if a seller said pay me and I'll pay off the finance I would walk away.
I'm sure the OP is as honest as the day is long but there are too many out there that are not for me to risk it.

It's a case of how you word it.

Tiddlywinks

Paperbird wrote: »

To be honest if a seller said pay me and I'll pay off the finance I would walk away.
I'm sure the OP is as honest as the day is long but there are too many out there that are not for me to risk it.

I agree with the above...

Jamie_Carter wrote: »

It's a case of how you word it.

Not really...

The car will have finance on it at the point of the money changing hands from the current owner to the new buyer... there will need to be a point where the money is given to the seller BUT the car will still be subject to finance (and therefore still owned by the finance company) until that amount is settled... the buyer would need to see a settlement confirmation to show that the debt is cleared.

How, as a private buyer, could you really make sure that you were not about to be ripped off / subject to a prolonged battle due to an admin error where the finance isn't settled correctly... or whatever other problem might occur in between?

The finance company will always have primacy over ownership of the vehicle until they issue the finance settlement papers - in my opinion, I would not take the risk PLUS who wants that hassle?

CKhalvashi

Tiddlywinks wrote: »

How, as a private buyer, could you really make sure that you were not about to be ripped off / subject to a prolonged battle due to an admin error where the finance isn't settled correctly... or whatever other problem might occur in between?

Assuming it's through a high-street bank (as all our company cars are), then you take the buyer into the bank with the cash, hand it over and get 2 copies of the receipt. Standard company practice, and we sell 3-4 ex-company vehicles a week (many of which still have 1 or 2 outstanding payments outstanding on them and all are owned by our company leasing company).

If this does not make up the shortfall, we will make it up out our own accounts. I've only been in this position with one vehicle, however, as most below-value stuff will either be kept on until it won't go a lot longer if its got stupid miles on it, or traded in if it's clean and brings us below group mileage allowance.

CK

Tiddlywinks

CKhalvashi wrote: »

Assuming it's through a high-street bank (as all our company cars are), then you take the buyer into the bank with the cash, hand it over and get 2 copies of the receipt. Standard company practice, and we sell 3-4 ex-company vehicles a week (many of which still have 1 or 2 outstanding payments outstanding on them and all are owned by our company leasing company).

As it's a PCP, it's more likely to be with Ford / Vauxhall / Citroen or whatever finance arranged via the dealer.

Yes, the seller could go to the bank with the buyer and pay in the amount to the finance company's account and give a copy of the receipt to the buyer but... I can't see many people wanting the hassle TBH... also, this method will let the buyer see what the outstanding balance is on the car and may inspire them to lower their final offer.