Wanting to sell my Car whilst it's still on Finance

christof94

Hi Guys,

Basically I took a gap year from Uni and got into a job for some experience, needed a more reliable Car so bought a 2010 Ford Fiesta on finance.

The Car cost £8000 I paid £2000 upfront and then traded in my older car for £900 to bring the cost to £5100.

I chose to finance this over for £150 a month over 3 years costing £5400 overall.

Currently there is £4800 left to pay. (By September there will be there will be £3900)

However I will be going back to Uni this September and want to try and get rid of the car as I won't have any other income than my loan and a part time job. It's only done 26'000 and the valuations I have done on it value it at between £5500-£7000.

Just wondering if there is any way I can sell the car, pay the finance company off and then keep the rest?

Any help would be great!

Thanks

Chris

Foxy-Stoat_3

Get an email from them asking for the settlement figure. Be upfront with buyers in your advert about the finance.

You need to get the buyer to pay the finance company over the phone the settlement figure and get confirmation in writing from the finance company that the payment has been cleared and give you the balance in cash if you want to sell the finance company's car.

It may be better to take out a personal loan and clear the finance first....if you can find a buyer quick enough you may be able to pay back the loan in full with minimal charges within the 14 day cooling off period.

MrSilk

You'd have to hand the car back to the finance company as it is still their property, you only own it once the finance has been fully paid. Of course, you'd not receive any refund of any amounts paid while you've had the car.

You won't be able to sell the car while it is still on finance unfortunately.

Tixy

Have you checked your paperwork to see at what point you can voluntarily terminate the agreement (hand back the car and owe nothing more)?

Do you want rid of the car now? or in September?

National_Debtline

Hello there, do ensure that you check the paperwork to ascertain what type of car finance you have. The majority of finance is hire-purchase, which means that you would require the lender's permission to sell it. Also you may encounter difficulties selling as the car would be recorded on the HPI register.

If the finance is a 'fixed-sum loan' - the money is not secured on the car, it would be yours to dispose of.

If it is HP, as Tixy has mentioned you may be able to voluntarily terminate. Further info can be found here:
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=16_hire_purchase_debt

Best wishes,

David @ NDL.

BeenThroughItAll

MrSilk wrote: »

You'd have to hand the car back to the finance company as it is still their property, you only own it once the finance has been fully paid. Of course, you'd not receive any refund of any amounts paid while you've had the car.

You won't be able to sell the car while it is still on finance unfortunately.

That is, with respect, rubbish.


You are perfectly within your rights to sell a car with outstanding finance assuming you pay the finance company off before releasing the car, so that you are actually selling something you own.


To the OP, check your paperwork - if the car is financed via a personal loan rather than hire purchase, you are free to sell it anyway, as the loan is not secured on the vehicle. Check with the financier if in doubt.

chanz4

It maybe very hard to sell private, people dont have the cash

Foxy-Stoat_3

chanz4 wrote: »

It maybe very hard to sell private, people dont have the cash

That's right, none of the thousands of private buyers in the UK have £5500 in cash to buy a car do they!!!!!

forgotmyname

Sell to a dealer who sill settle the finance. But i think your valuation is rather optimistic. Dealers are selling 2010 fiesta's for under £5000. So they may only offer £4000 if your lucky.

bigadaj

OP - is that finance figure correct, £300 interst on five grand over three years is a very low rate of interest.

CherlokHomes

National_Debtline wrote: »

Hello there, do ensure that you check the paperwork to ascertain what type of car finance you have. The majority of finance is hire-purchase, which means that you would require the lender's permission to sell it. Also you may encounter difficulties selling as the car would be recorded on the HPI register.

If the finance is a 'fixed-sum loan' - the money is not secured on the car, it would be yours to dispose of.

If it is HP, as Tixy has mentioned you may be able to voluntarily terminate. Further info can be found here:
http://www.nationaldebtline.co.uk/england_wales/factsheet.php?page=16_hire_purchase_debt

Best wishes,

David @ NDL.

Going to pull you up on this one as 2 of the biggest HP motor finance company's Motonovo finance & Close motor finance DO NOT need permission to sell the car as you can pay off your finance online whether it's your card or anyone's card.

Soon as that payment goes through the finance company no longer owns that vehicle.

I'm saying this because I've done it.