Selling A Finance Car?!?

Nelle01

Hi All,

A bit of advice needed please. I took out finance on a car around 6 months ago. (With MotoNovo). I have around £10,900 left to pay.

I think I could get around £8000 for the car. I would like to outright buy an older less expensive car so as to not have the debt hanging over my head and then pay off the rest of the finance with the money I get from selling.

Is this something I can legally do? And then perhaps give the person I am selling the car to something in writing the state I am liable to pay off the outstanding finance?

I am not very knowledgeable at all on money related things concerning cars. I really want this car and debt gone .

I know different companies will probably have different rules on this but I am just wondering if this will be at all possible?

My credit used to be pretty good but since getting this car annoyingly it has gone down so getting a loan or credit card in order to pay off is not even an option.

Selling and paying off seems the easiest way to go about it but often with these companies the simple option never seems to be available. :mad:

Any advice greatly appreciated even if just to say this is a stupid idea lol.

Thanks x

molerat

What type of finance is it, what does it say at the top of the finance agreement ?

Nelle01

I'm not at home to dig out the policy but I believe it would be Hire Purchase? Or is that not right?

molerat

If on HP the car is not yours to sell. You need to ask the finance company for a settlement figure and pay off the whole amount at the time of the sale, you can not make a part payment and continue to pay the finance. If however the agreement is a "Fixed Sum Loan" then you can do whatever you wish as the car and the loan are not linked.

seanavfc92

If the car is hire purchase, you would need to voluntarily terminate the agreement. You can ask them for written permission to allow you to sell the car, but that's not guaranteed. Any shortfall would obviously need to be paid off, but that becomes an unsecured debt once you surrender the car back to them.

Best thing to do would be to call them and get some more info. Different finance companies work differently.

sourcrates

Nelle01 wrote: »

Is this something I can legally do? And then perhaps give the person I am selling the car to something in writing the state I am liable to pay off the outstanding finance?

I am not very knowledgeable at all on money related things concerning cars. I really want this car and debt gone .

Selling and paying off seems the easiest way to go about it but often with these companies the simple option never seems to be available. :mad:

OP, this is a very bad idea, according to Motonovo`s website, the type of car loan they provide is Hire purchase.


This means you don't own the car, they do, until you have repaid all outstanding finance.
That also means anyone you sell this car to, would need to repay the outstanding balance to the lender.
As the debt on the car outweighs its value, that's not an option.


No car dealer will buy this from you as they automatically do an HPI check to see if a vehicle has outstanding finance.


If you were to sell it privately, to an unsuspecting member of the public, the car could be seized back by the police, the customer would lose all there money, and the car.


You could find yourself in all kinds of problems, what you would need to do, is ask the lender for a settlement figure, once that is paid, the car is yours to do with as you wish, but as you have not had the agreement for long, you owe more than its worth.


I`m afraid legally, your stuck with it, unless you return the car to them, they would then sell it, for less than the outstanding balance, and you would still be liable for the remainder, its catch 22 either way, sorry !!!!

matttye

The maths doesn't add up, you would still owe the finance co money.

£8000 for selling the car
- say £3k for a new used car

£5000 remaining. Pay that off finance. £5900 left to pay.

Just thought you might want to look at the numbers before you even get into whether it's legal or not.

SailorSam

I bought a car once that was on finance, but i didn't know anything about the loan until the finance company got intouch with me to say they wanted either the money or 'their' car back again. What made it worse was i bought it off a guy i'd worked with, although he had since left.
Told them i knew nothing of the loan and i'd contact the bloke i bought off. He asked me to tell them there'd been a mistake and i was suppose to finish the payments, so if i did this he'd come to see me each week with the money.
I got back to the finance company telling them what he said and although i didn't know about the loan if he came with cash each week i'd send it on to them.
Well surprise surprise, i never saw my 'friend' again or any money, but i was very lucky that the finance company accepted what i told them and didn't take the car away.

sourcrates

SailorSam wrote: »

Well surprise surprise, i never saw my 'friend' again or any money, but i was very lucky that the finance company accepted what i told them and didn't take the car away.

Wow, you were very lucky, they usually take the car and sell it to recoup there losses.

matttye

SailorSam wrote: »

I bought a car once that was on finance, but i didn't know anything about the loan until the finance company got intouch with me to say they wanted either the money or 'their' car back again. What made it worse was i bought it off a guy i'd worked with, although he had since left.
Told them i knew nothing of the loan and i'd contact the bloke i bought off. He asked me to tell them there'd been a mistake and i was suppose to finish the payments, so if i did this he'd come to see me each week with the money.
I got back to the finance company telling them what he said and although i didn't know about the loan if he came with cash each week i'd send it on to them.
Well surprise surprise, i never saw my 'friend' again or any money, but i was very lucky that the finance company accepted what i told them and didn't take the car away.

Yes you can argue that you have a 'good title' if you bought it in good faith. Unfortunately doesn't apply to this thread as the OP is talking about telling the buyer there's outstanding finance on it. If you buy a car knowing there's outstanding finance then you can't argue that you have a legal right to it.

See: http://www.adviceguide.org.uk/england/consumer_e/consumer_cars_and_other_vehicles_e/consumer_problems_with_the_car_you_bought_e/consumer_the_vehicle_you_bought_doesnt_match_its_description_e/the_vehicle_is_still_on_hire_purchase.htm

[Deleted User]

How can you pay off a £10,900 balance, with £8,000, let alone buy another car as well :huh: