Selling a car on finance.

kevin63

Looking to sell my car which has current finance outstanding from a PCP deal.

Will be selling at a slight loss so will have to put some money towards the sale myself so have some questions:

1) Should i get the buyer to transfer the cash to my bank account and then I pay off the finance in full (adding the extra amount) - This way I know the finance company has been paid and mind at ease.

2) Should I get the buyer to pay directly to the finance company, then i also send a bank transfer for the remainder? - I'm worried buyer then reverses this payment or something and they drive away with the car.

3) Even if buyer does somehow reverse payment to finance company - once we both sign the logbook over to them, are they liable for the finance too?

My biggest concern is here, when to sign the car over to them and give them the keys as the finance company has stated payment must be via bank transfer. I'm never going to be sure they have received this payment until probably a week later by post I'm guessing. No buyer is going to pay then let me keep the car for a week.

You're advice and help would be appreciated.

ess0two

2


But I'd want to see you pay the remainder at the same time.

molerat

The safest way for the buyer is for them to pay the finance company direct, there is no chance of you pocketing the money and them being chased.

The safest way for you is to accept a FP bank transfer or folding money, that way you know you have the cash and can pay it all off yourself.

Phone your finance company and ask them if they can pick up a transfer paid into their account immediately.

kevin63

ess0two wrote: »

2


But I'd want to see you pay the remainder at the same time.

Why's that, because the buyer would be liable for the remainder if I didn't pay it?

I'm not in the game to rip someone off, all legit here. Just don't want to get ripped off myself.

Once both paid would it be fine to transfer keys and V5 without confirmation from finance company? Deal is likely going to go ahead after work you see when the car is being viewed - Finance company office probably shut to call them.

Thanks,

kevin63

molerat wrote: »

The safest way for the buyer is for them to pay the finance company direct, there is no chance of you pocketing the money and them being chased.

The safest way for you is to accept a FP bank transfer or folding money, that way you know you have the cash and can pay it all off yourself.

Phone your finance company and ask them if they can pick up a transfer paid into their account immediately.

Thanks for your reply, I'd be more confident if I received the cash then let them watch me pay it off in full. That way I know it can't be reversed.

I guess I need to ring the finance company and see if they can offer advice. I thought they'd be against the idea of me selling though. It's with volkswagen if that's any help.

laidbackgjr

kevin63 wrote: »

Thanks for your reply, I'd be more confident if I received the cash then let them watch me pay it off in full. That way I know it can't be reversed.

Whilst the buyer couldn't reverse the payment to the finance company, they could try to reverse the payment to you. If you have a buyer determined to commit fraud, whichever method you take will leave you exposed and in a fight with the banks / finance company for protection.

Thankfully most buyers are not fraudsters and will simply be looking to ensure their purchase is free of finance, if I was buying I would want you to have cleared your share of outstanding finance first, then I'd pay the finance company the balance to clear and drive off with car, paperwork and be confident the finance was cleared.

kevin63

laidbackgjr wrote: »

Whilst the buyer couldn't reverse the payment to the finance company, they could try to reverse the payment to you. If you have a buyer determined to commit fraud, whichever method you take will leave you exposed and in a fight with the banks / finance company for protection.

Thankfully most buyers are not fraudsters and will simply be looking to ensure their purchase is free of finance, if I was buying I would want you to have cleared your share of outstanding finance first, then I'd pay the finance company the balance to clear and drive off with car, paperwork and be confident the finance was cleared.

So even if the buyer does try to rip me off and drives away with the documents, car and keys - I'm still liable for the finance? Seems there will be always a risk for me then regardless and whatever way I proceed is going to be risky.

Joys of selling a car privately

kevin63

Biggest roadblock i'm having at the moment is 'How can i confirm the finance company has received the funds to clear it'. If i sell the car in the evening I'm guessing they're shut.

Maybe I can only do it on a weekend, early on a saturday or something.

Anyone have any experience with this?

Thanks

Foxy-Stoat_3

Best thing to do is call the finance company and ask for their call center opening hours and complete the sale then. They may well be open upto 8 or 9pm.

Once the buyer makes the payment over the phone you make the additional payment for the shortfall, ask them to email confirmation that the finance has been paid to you and the buyer. If I was a buyer, I would insist that written confirmation is received before driving off with it.

It would be in your interest to ask for the buyers driving license to check the address and their ID, note the driver number on the receipt and keep a copy. If the buyer is using a stolen debit card or anything like that you can show that you took some steps to confirm their ID.

Spicy_McHaggis

Foxy-Stoat wrote: »

Best thing to do is call the finance company and ask for their call center opening hours and complete the sale then. They may well be open upto 8 or 9pm.

Once the buyer makes the payment over the phone you make the additional payment for the shortfall, ask them to email confirmation that the finance has been paid to you and the buyer. If I was a buyer, I would insist that written confirmation is received before driving off with it.

It would be in your interest to ask for the buyers driving license to check the address and their ID, note the driver number on the receipt and keep a copy. If the buyer is using a stolen debit card or anything like that you can show that you took some steps to confirm their ID.

Unlike to help the OP out though as he'll be without a car and still owe the finance.

Foxy-Stoat_3

Spicy_McHaggis wrote: »

Unlike to help the OP out though as he'll be without a car and still owe the finance.

Not unless the finance company has given him confirmation that the payment has been received and cleared.

Also, the finance is secured on the car, so the new owner would then be responsible.