can you sell a financed car

marygoodwife

hi just a quick one i have just bought a new vauxhall on finance last month and ive lost my job, can i sell it? someone has said i cant?, thanks in advance:eek:

Alias_Omega

Yes,

Just be honest with the buyer.

My uncle recently went to buy a car, on carrying out the HPI. It came back as financed. The seller was planning to use the cash to pay off the finance, which my uncle said NO.

Instead, he arranged to pay the outstanding finance direct to the finance company via his bank card, and gave the extra to the seller of the car.

Everyone was happy..

Tiddlywinks

Was it brand new? You may be in for a shock as the car may not be worth enough to pay off the finance - unless you put down a good deposit.

The car will now have depreciated in value because of the time and the extra owner (you).

You could ask the garage how much they would give you for it.

fatbelly

It depends.

From National Debtline:

Hire purchase and conditional sale agreements usually relate to cars although they are sometimes seen for furniture and white goods. They are different from ordinary credit agreements because under hire purchase and conditional sale agreements you do not own the goods until you have paid off the agreement.

Warning

This means you cannot sell the goods yourself without the creditor's written permission. If you sell the goods without permission it can be a criminal offence.

So, never mind what someone's uncle did. Tell us what sort of finance you are talking about.

luckwudaveit

There may also be an early repayment penalty? Of course, this may be less than any future interest charges, but worth checking out.

atrixblue.-MFR-.

you may not actually get permission to sell private as its so early in the plan.

you may get permission if you sell it to the dealer you bought it from.

this early there could very well be a early settlement fee wich the dealer will not be willing to pay off so you will have to contact the finance company, get permission to sell , find out the final settlement figure with fee's.

McClane54

Alias_Omega wrote: »

Yes,

Just be honest with the buyer.

My uncle recently went to buy a car, on carrying out the HPI. It came back as financed. The seller was planning to use the cash to pay off the finance, which my uncle said NO.

Instead, he arranged to pay the outstanding finance direct to the finance company via his bank card, and gave the extra to the seller of the car.

Everyone was happy..

Yeah agree, be honest

I helped my girlfriend sell her finianced car, we told the buyer from the start, so when they came with cash, we went to the bank and put the money in, then rang the finance company in the buyers attendance and paid it off, the buyer then drove off, when she had confirmation we just sent a copy to the buyer as a good will gesture

motorguy

fatbelly wrote: »

It depends.

From National Debtline:



So, never mind what someone's uncle did. Tell us what sort of finance you are talking about.

The car isnt sold until someone pays for it.

Get a settlement figure, have the buyer pay the finance company directly at their office when they are picking it up, with a cash adjustment from O/P if required.

Simples.

Happens every day. Finance company wont have an issue.

motorguy

McClane54 wrote: »

Yeah agree, be honest

I helped my girlfriend sell her finianced car, we told the buyer from the start, so when they came with cash, we went to the bank and put the money in, then rang the finance company in the buyers attendance and paid it off, the buyer then drove off, when she had confirmation we just sent a copy to the buyer as a good will gesture

^^^^

This.

motorguy

luckwudaveit wrote: »

There may also be an early repayment penalty? Of course, this may be less than any future interest charges, but worth checking out.

They generally will waiver a lot of the interest charges, so the settlement figure will be much less than the total amount owed at this stage. I think legally they have to.

Simple matter of getting a settlement figure though.

colino

An interesting one this. Virtually identical circumstances a customer of a local trader wanted to hand the car back (to the trader!) after only making one payment. Trader explained the routine and the substantial gap between his finance package and present value of the car. Customer went ape and instead of phoning politely to enquire hypothetically about a settlement deal, I'm guessing he carried on the same attitude when he called the finance co. They said they would send out the requested figure by post, but also sent their recoveries team the next day and repossessed the car! Their "legal letter" says they suspect fraud and will hold the car unless full payment is made within 28 days or the car will be disposed of and any balance and their costs will be added to his account. They have also fired a warning shot across the Trader by threatening him with full recovery too.
Be careful in handling this one as the big boys are not only tougher in their actions nowadays, but they act a whole lot quicker to protect their assets and have a much better legal resource than their clients.
By all means get a settlement figure but you will be horrified about the disparity between todays "fire-sale" value of the car and the figure they provide. If, with support, you can keep payments up on the car until you can dispose of without penalty, that is far better than having no car but still having an enormous debt hanging over you.