Loan after change in circumstances

hotlymet

Hi all,

I stupidly took out an expensive car loan only a few months back which i'm selling privately and paying the settlement, the shortfall means that i will end up being out of pocket by 3K!

Tomorrow night i hope to pay the settlement fee of 23K once i meet the buyer and give them the car. This will leave me without a car and possibly car sharing with my partner.

The 3K, i have leant off family and agreed to pay it back in 6 monthly instalments of 500 (the same cost the finance pm). paying back at this rate wouldn't give me any less money pm however i'd like to take out a loan of 5-6K ASAP to pay back the 3000 and money to buy a cheap vehicle.

my concern is that, once i pay the settlement loan companies will more than likely still see this on my file. how long would i need to wait / are there companies that could factor in the fact that i no longer have the 23k car debt?

jonesMUFCforever

If I was buying any car privately let alone a £20k + car the first thing I would do before meeting you is to do a HPI check.#
This would show the amount outstanding and I would not even go to see it.
There is nothing stopping you pocketing the cash and not paying the HP off leaving me with a car which would be repossessed.


I am writing this assuming it is HP and not a bank personal loan because of the terminology used such as car loan, cost of finance etc.
If this is not the case ignore me!

Foxy-Stoat_3

May take a few weeks to update your credit file. Well done for finding a buyer so quickly. I take it they will pay the finance company the cost of the car and you oay the difference before they drive off with it?

poppasmurf_bewdley

I sincerely hope the guy buying the car is bringing the whole amount in cash, and not a bankers draft or paying the money into your Paypal or other account. Anything other than cash in your hand is open to being a scam.

The only safe way is to meet him inside your bank and immediately pay the cash into your account.

Foxy-Stoat_3

poppasmurf_bewdley wrote: »

I sincerely hope the guy buying the car is bringing the whole amount in cash, and not a bankers draft or paying the money into your Paypal or other account. Anything other than cash in your hand is open to being a scam.

The only safe way is to meet him inside your bank and immediately pay the cash into your account.

I sincerely hope they DONT !!!!!

No cash needs to change hands here, only a telephone transaction between the buyer and the finance company and confirmation that the seller has paid the shortfall on the finance.

poppasmurf_bewdley

Foxy-Stoat wrote: »

I sincerely hope they DONT !!!!!

No cash needs to change hands here, only a telephone transaction between the buyer and the finance company and confirmation that the seller has paid the shortfall on the finance.

I'm talking about IF the Op is dealing with cash. Not whether he should or not.

Foxy-Stoat_3

OK, the OP isn't dealing in cash as there is finance on this car for around £23,000 and the buyer is paying £20,000 for it. If the buyer pays the OP £20,000 in cash then they will probably lose the money and the car.

poppasmurf_bewdley

Zac_Holt wrote: »

Hi all,

I stupidly took out an expensive car loan only a few months back which i'm selling privately and paying the settlement, the shortfall means that i will end up being out of pocket by 3K!

Tomorrow night i hope to pay the settlement fee of 23K once i meet the buyer and give them the car. This will leave me without a car and possibly car sharing with my partner.

The 3K, i have leant off family and agreed to pay it back in 6 monthly instalments of 500 (the same cost the finance pm). paying back at this rate wouldn't give me any less money pm however i'd like to take out a loan of 5-6K ASAP to pay back the 3000 and money to buy a cheap vehicle.

my concern is that, once i pay the settlement loan companies will more than likely still see this on my file. how long would i need to wait / are there companies that could factor in the fact that i no longer have the 23k car debt?

Foxy-Stoat wrote: »

OK, the OP isn't dealing in cash as there is finance on this car for around £23,000 and the buyer is paying £20,000 for it. If the buyer pays the OP £20,000 in cash then they will probably lose the money and the car.

Sounds to me like the OP IS proposing to deal in cash.

Foxy-Stoat_3

poppasmurf_bewdley wrote: »

Sounds to me like the OP IS proposing to deal in cash.

Best of luck to the buyer then!

hotlymet

Sorry for the late reply, the buyer is a motor dealer who has been used many times by a friend who is also a motor dealer.

He will be paying the cash directly to the finance company, 23K, and I will give him 3K cash.

Regarding the loan, I have applied for a loan of 8K at 31% APR

Mara_uk7

So how did 5-6k Jump to 8K loan ?