Want to get rid of my car that is on finance

izoomzoom

A year ago, DH bought a 59 reg car. He was commuting 86 miles a day.

However, he got a new job locally and we no longer need the car. He now cycles to work.

We asked for an early settlement figure and they gave us an amount of £6900.

DH recons similar cars are up for £6000 on autotrader and we would like to try and sell the car, probably getting between £5.5 and £6 grand.

However, the car is on finance and I am not sure we are allowed to sell it privately whilst still owing money to the finance company.

Someone suggested getting a loan (probably from our bank) paying off the all finance, and then selling the car privately. We understand there would be a shortfall of probably up to £1400, but would have the car's monthly repayment amount available to service that and be done with the 'car debt' in less than 6 months.

The alternative would be to keep the car, which is only used on the weekend (we do have my car too), and continue to pay £250 a month for the privilige for the next 3 years .....

Any thoughts?

F1F93

How about option three: Sell your car?
I agree it's a bit pointless to keep two cars, but is there any reason why you wouldn't sell yours? Or is that on finance too? Obviously you may not want to drive his (my OH never liked to drive my old car, said it was too big).

There is also some clause in most contracts where you can give the keys back after half of the car has been paid back or something like that (I'm not sure exactly what it is, I've never had to use it!) but that could be an option. Presuming its a four year lease (given that your OH took it out a year ago and you mentioned paying for the next three years) then you only have to keep it going for a year and then you can give it back.

Is there anyone else in the family who drives and is in need of a car? If so, maybe come up with a deal with them, i.e they have use of the car during the week in exchange for half of the monthly payment or something like that?


EDIT: Also, most car's have some sort of forum, most of which have a buy/sell page. Might be worth posting on there, autotrader, ebay etc to maximise your chances of selling for a decent price .

CLAPTON

what sort of finance is he on?

HP
personal loan
or what

supersaver1000

izoomzoom wrote: »

A year ago, DH bought a 59 reg car. He was commuting 86 miles a day.

However, he got a new job locally and we no longer need the car. He now cycles to work.

We asked for an early settlement figure and they gave us an amount of £6900.

DH recons similar cars are up for £6000 on autotrader and we would like to try and sell the car, probably getting between £5.5 and £6 grand.

However, the car is on finance and I am not sure we are allowed to sell it privately whilst still owing money to the finance company.

Someone suggested getting a loan (probably from our bank) paying off the all finance, and then selling the car privately. We understand there would be a shortfall of probably up to £1400, but would have the car's monthly repayment amount available to service that and be done with the 'car debt' in less than 6 months.

The alternative would be to keep the car, which is only used on the weekend (we do have my car too), and continue to pay £250 a month for the privilige for the next 3 years .....

Any thoughts?

Hi izoomzoom. Have you paid half yet (including the deposit) as you may be able to give the car back?

I was p/exing a car a couple of years ago then realised it would be cheaper to pay the balance of half and give it back then take the part-exchange price.

Unless you paid a large deposit then I'm guessing you possibly won't be at that point yet.

I used webuyanycar to get rid of a car this year and it worked well for me. They paid off my finance and I ended up with some cash in my hand (not sure where it disappeared to in my Abyss of debt) but I'm not sure how it works the other way around. Worth a try though

Interestingly I had a quote from them in October but waited as I wasn't sure of our situation but then in January they offered me even more - how did that work? But anyway it covered more than the 3 payments I'd made in the meantime so I was more than happy.

Probably a good idea to get rid of it sooner than later as it will depreciate but good luck.

Sorry meant to say that you don't need to arrange another loan as I'm fairly sure any purchaser would just pay the finance company. Bit messy which is why used who I did.

izoomzoom

CLAPTON wrote: »

what sort of finance is he on?

HP
personal loan
or what

According to the paperwork I have - its says fixed sum loan but it is also linked to the supply of specific goods (ie DH's car).

izoomzoom

supersaver1000 wrote: »

Hi izoomzoom. Have you paid half yet (including the deposit) as you may be able to give the car back?

I was p/exing a car a couple of years ago then realised it would be cheaper to pay the balance of half and give it back then take the part-exchange price.

Unless you paid a large deposit then I'm guessing you possibly won't be at that point yet.

I used webuyanycar to get rid of a car this year and it worked well for me. They paid off my finance and I ended up with some cash in my hand (not sure where it disappeared to in my Abyss of debt) but I'm not sure how it works the other way around. Worth a try though

Interestingly I had a quote from them in October but waited as I wasn't sure of our situation but then in January they offered me even more - how did that work? But anyway it covered more than the 3 payments I'd made in the meantime so I was more than happy.

Probably a good idea to get rid of it sooner than later as it will depreciate but good luck.

Sorry meant to say that you don't need to arrange another loan as I'm fairly sure any purchaser would just pay the finance company. Bit messy which is why used who I did.

No haven't paid back half. Only had it a year now.

izoomzoom

F1F93 wrote: »

How about option three: Sell your car?
I agree it's a bit pointless to keep two cars, but is there any reason why you wouldn't sell yours? Or is that on finance too? Obviously you may not want to drive his (my OH never liked to drive my old car, said it was too big).

There is also some clause in most contracts where you can give the keys back after half of the car has been paid back or something like that (I'm not sure exactly what it is, I've never had to use it!) but that could be an option. Presuming its a four year lease (given that your OH took it out a year ago and you mentioned paying for the next three years) then you only have to keep it going for a year and then you can give it back.

Is there anyone else in the family who drives and is in need of a car? If so, maybe come up with a deal with them, i.e they have use of the car during the week in exchange for half of the monthly payment or something like that?


EDIT: Also, most car's have some sort of forum, most of which have a buy/sell page. Might be worth posting on there, autotrader, ebay etc to maximise your chances of selling for a decent price .

Can't sell my car, as family cannot all fit in DHs car.

BillJones

There is no reason not to sell the car privately, as long as you settle the finance as part of the sale.

However, a car with finance on it will probably have to be sold at a slight discount to one without, as the finance is one more thing for a buyer to worry about.

izoomzoom

Also the car has extended warranty, which if sold to a dealer or like, will become null and void.

However, if we sell it privately, the warranty can be transferred to the new owner for an admin fee.

CLAPTON

izoomzoom wrote: »

According to the paperwork I have - its says fixed sum loan but it is also linked to the supply of specific goods (ie DH's car).

in what was is it linked to the car?
does it prevent you selling the car in some way?