selling a sofa before paying off finance

dexterwolf

Can I sell a sofa on eBay before I have paid full finance off on it?. We are buying new sofa for new house but wanted to know if it was OK to sell the other whilst we have five months left to pay on it.

cakeforbrains

Not an expert, but I think so. The finance is simply a loan. They don't still own part of the sofa.

Might be wrong, though.

RFW

dexterwolf wrote: »

Can I sell a sofa on eBay before I have paid full finance off on it?. We are buying new sofa for new house but wanted to know if it was OK to sell the other whilst we have five months left to pay on it.

It probably depends on the finance but it's most likely not a problem. It's not like a car when it can be tracked if you sell it to someone else, sofas tend not to have VIN numbers and log books.

earthstorm

NO you cannot as you don't own the sofa until you have finished paying the finance.

How finance works.

1) You find goods in store
2) you order goods on finance and are accepted and agree a payment scheme.
3) the finance company pays the retailer the full price for the item (so in effect the FC purchases the item)
4) The goods are delivered to you as instructed in the Finance agreement.
5) you are loaned the item from the FC until you have paid back what the FC has paid for the goods along with what interest if any they apply.

Enfieldian

earthstorm wrote: »

NO you cannot as you don't own the sofa until you have finished paying the finance.

How finance works.

1) You find goods in store
2) you order goods on finance and are accepted and agree a payment scheme.
3) the finance company pays the retailer the full price for the item (so in effect the FC purchases the item)
4) The goods are delivered to you as instructed in the Finance agreement.
5) you are loaned the item from the FC until you have paid back what the FC has paid for the goods along with what interest if any they apply.

Oh. Is the loan somehow secured on the sofa then?

earthstorm

Enfieldian wrote: »

Oh. Is the loan somehow secured on the sofa then?

you are leasing the sofa from the finance company until it is paid off (lease purchase).

if you look at the finance agreement you will see somewhere that the property is their until paid in full.

shaun_from_Africa

It all depends on the type of finance agreement.
If it's hire purchase or lease purchase then you don't legally own the goods until you've paid off the finance, but if the finance was simply a loan arranged with the retailer or a finance company working with the retailer, then you are totally free to do what you wish with the sofa.

Goldiegirl

It would depend on the finance agreement.

If it was some sort of hire purchase agreement then the sofa wouldn't be yours until the final payment was made.

If it was a loan agreement, then the sofa is already yours.

However, as long as you kept up payments, it's all academic really, as they'll never actually know what you do with the sofa.

It you had sold it, and you defaulted on the HP and they sent the bailiffs round to repossess the sofa, they'd probably take something else to the value of the sofa.

In short, there's probably no harm in selling the sofa, as, even if it is HP, there is a very low percentage chance that DFS (or whoever) will ever get to know about it

earthstorm

Goldiegirl wrote: »

It you had sold it, and you defaulted on the HP and they sent the bailiffs round to repossess the sofa, they'd probably take something else to the value of the sofa.

WRONG,
if you sold it and its not yours then you will end up in court on theft charges if you default and bailiffs can repossess the sofa.

dexterwolf

Thanks for coming back to me, I will dig the paper work out and have a look. I probably list the sofa and then put the money towards paying off the remaining finance.

ballisticbrian

selling a sofa before paying off finance

I would definitely sleep on it...