can you sell a financed car

motorguy

colino wrote: »

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.

Yes, it would be a good idea not to make the finance company think you cant afford the car at this stage.

motorguy

marygoodwife wrote: »

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:

Personally though, i wouldnt knee jerk into anything just yet. Any notice period pay / redundancy could keep your payments going for another month or two until you get another job?

zoominatorone

We bought a car two years ago from a dealer. They arranged finance with Barclays for us which works out at £120 per month.

Am I right in thinking that what we have is effectively a bank loan and we could dispose of the car as we wish as it's not actually on finance?

motorguy

zoominatorone wrote: »

We bought a car two years ago from a dealer. They arranged finance with Barclays for us which works out at £120 per month.

Am I right in thinking that what we have is effectively a bank loan and we could dispose of the car as we wish as it's not actually on finance?

You would need to check the agreement - it may be loan, equally it may be finance against the car.

used_car_manager

zoominatorone wrote: »

We bought a car two years ago from a dealer. They arranged finance with Barclays for us which works out at £120 per month.

Am I right in thinking that what we have is effectively a bank loan and we could dispose of the car as we wish as it's not actually on finance?

barclays dont do HP it will be a motor loan...

Cornucopia

Pretty much any finance arranged with a motor dealer will be HP or similar.

The first step for the OP should be to obtain a settlement figure from the finance company. Then get an estimate of the vehicle's present value on-line or from a dealer. The difference will either be a shortfall or equity in the vehicle and the decision can then be made about what action to take.

Penalties for early settlement will be built in to the settlement figure. They may be bundled in to a figure for refunded interest. They are likely to be at their highest at this early stage of the agreement, though that will be offset by the large amount of future interest that will not be charged.

Technically, you cannot sell the vehicle without the agreement of the finance company. However, if you are selling the vehicle to a reputable dealer, that dealer will typically sort all of that out, and you would not need prior permission.

used_car_manager

Cornucopia wrote: »

Pretty much any finance arranged with a motor dealer will be HP or similar.

The first step for the OP should be to obtain a settlement figure from the finance company. Then get an estimate of the vehicle's present value on-line or from a dealer. The difference will either be a shortfall or equity in the vehicle and the decision can then be made about what action to take.

Penalties for early settlement will be built in to the settlement figure. They may be bundled in to a figure for refunded interest. They are likely to be at their highest at this early stage of the agreement, though that will be offset by the large amount of future interest that will not be charged.

Technically, you cannot sell the vehicle without the agreement of the finance company. However, if you are selling the vehicle to a reputable dealer, that dealer will typically sort all of that out, and you would not need prior permission.

not entirely true...

barclay dont do HP its a motor loan.. 2 different things...

hpi it if its not on their you can sell it.. if it is and its a loan you can have it removed as its not HP