Car Finance - Black Horse - Can I sell - Are there any options?

Mr.J_2

Hi everyone,

Fairly new to this site, but if possible - I am seeking some advice?!

Last year (May 2014), we bought a BMW X5, we have Black Horse finance (over 5 years) and I was wondering where we stand with this. Am I able to sell the car and then pay the finance off? There is still a large amount outstanding - personal situ has changed and I am now looking to move on from the car due to financial reasons.

Would I be better off going back to BMW where we bought the car and speaking to them?

I was just wondering if there is anyone else out there that have been in a similar situation and could shed some light on the situation?

Thank you

Double_V

If you no longer need the car.
Then just go and hand the car back and simply walk away.
But if you have put any deposit, you will lose it.

If it's small amount, then imo it's best to just hand the car back. (considering you're within the allowed mileage)

Selling privately and then clearing finance seems like long process.

tberry6686

Is the finance a personal loan, hp or a pcp.

If it is a personal loan then you can sell it if you want and use the money how you like (unless it is secured on the car) You will almost certainly get less for the car than you owe and so would have to put some money in.

If HP you can voluntarily terminate when you have paid off half the value of the contract (unlikely to be even close at this point) with nothing more to pay. Just handing the car back at this point would allow Blackhorse to sell it for whatever they can get and you will be liable for any shortfall.

PCP I have little knowledge of but I'm sure someone who does will be along soon.

Mr.J_2

Thanks, I believe the loan is secured against the car - it was done via BMW and rec'd to use Blackhorse. But personal situation has changed and due to finance reasons, I want to sell the car.

Having only had the car a year, I think I could sell it for the amount owed, but I am wondering if that is possible to do and then clear the finance? If so, I will put up for sale

Nearlyold

Double_V wrote: »

If you no longer need the car.
Then just go and hand the car back and simply walk away.
But if you have put any deposit, you will lose it.

If it's small amount, then imo it's best to just hand the car back. (considering you're within the allowed mileage)

Selling privately and then clearing finance seems like long process.

Sorry you cannot just hand the car back, you can only Voluntarily Terminate without further liability if the loan is HP (Most PCPs are HP contracts) BUT you have to have paid 50% of the TOTAL amount payable including all the interest and any bubble due at the end. If its a 5 years agreement its unlikely to be PCP.

Ask Black Horse for a settlement figure and compare this with the current sale value of the car so that you can see where you stand. If you still need a car you could try going back to the dealer and see what they could do if you went for a much cheaper car BUT be prepared to lose a shed load of money on the deal. If it is on HP you need to talk to Black Horse before selling it as the car belongs to them not you, however if you sell it to a main dealer they will usually settle the finance for you, though there is obviously a risk that they delay payment

Gaz83

Mr.J wrote: »

Thanks, I believe the loan is secured against the car - it was done via BMW and rec'd to use Blackhorse. But personal situation has changed and due to finance reasons, I want to sell the car.

Having only had the car a year, I think I could sell it for the amount owed, but I am wondering if that is possible to do and then clear the finance? If so, I will put up for sale

IF it's possible (and I doubt it) to sell it and clear the total balance then yes, in theory, you could attempt to sell it. But you'd need to find a buyer willing to a) buy a car with outstanding finance, and b) be prepared to pay off the finance at point of sale. A lot of buyers can't be bothered with that kind of hassle.

molerat

First thing you need to do is read the agreement, it states across the top what type of finance it is in big bold letters. If it is HP etc it will give you the half way figure where you can hand it back and walk away.

Mr.J_2

I am pretty sure it is not on HP and that it is finance against the vehicle. I have a internet log in and it shows me the make of the car, remaining balance, duration, what has been paid etc.. I will check the agreement though

Nearlyold

It's very unlikely to be secured on the vehicle if it's not HP or PCP

MataNui

If the loan is secured on the car it will show up on a HPI check. For that sort of car nobody will buy it without doing one so regardless of what you may/may not be allowed to do under the finance agreement nobody will buy it from you anyway. Anyone with half a brain would want to see the finance clear BEFORE handing you any money for it, not give you the cash and hope you pay the money straight to the finance company (plus any shortfall).

burlington6

Double_V wrote: »

If you no longer need the car.
Then just go and hand the car back and simply walk away.
But if you have put any deposit, you will lose it.

If it's small amount, then imo it's best to just hand the car back. (considering you're within the allowed mileage)

Selling privately and then clearing finance seems like long process.

What a moron