We'd like to remind Forumites to please avoid political debate on the Forum... Read More »
Selling car on HP (PCP) agreement
thebritishbloke
Posts: 1,472 Forumite
in Loans
I'm moving out of the country and want to get rid of my car that's currently on a HP (3 Year PCP) deal with Citroen finance. Sorry for some vagueness to follow with figures, I'm out of the country and don't have my paperwork to hand.
I bought the car in January 2014 and borrowed £14,450 at (I think) 4.9% at £261pm for 36 months, I think the total repayment was ~£16,000 and the balloon payment ~£6,500. I currently still owe ~£9,500 on the car.
When I looked online, my model with similar age and mileage is currently selling for £10,500 to £11,500. But I'm sure there'll be a problem with me selling it given that it has finance on it? I've heard that one option is you sell it privately and tell people upfront it has finance on it, then get them to google the phone number themselves for citroen finance and they pay off the finance over the phone there and then and give me the excess in cash, but I'm not sure a lot of people will be happy with this option.
WeBuyAnyCar have offered £8,700 for it. I'm guessing I won't be able to convince a dealer to take it off of my hands for more than this (and thus the currently outstanding finance).
Does anyone have any other advice or options? I'm not too bothered about making any sort of profit on it, I just want to (as close as possible) break even.
I bought the car in January 2014 and borrowed £14,450 at (I think) 4.9% at £261pm for 36 months, I think the total repayment was ~£16,000 and the balloon payment ~£6,500. I currently still owe ~£9,500 on the car.
When I looked online, my model with similar age and mileage is currently selling for £10,500 to £11,500. But I'm sure there'll be a problem with me selling it given that it has finance on it? I've heard that one option is you sell it privately and tell people upfront it has finance on it, then get them to google the phone number themselves for citroen finance and they pay off the finance over the phone there and then and give me the excess in cash, but I'm not sure a lot of people will be happy with this option.
WeBuyAnyCar have offered £8,700 for it. I'm guessing I won't be able to convince a dealer to take it off of my hands for more than this (and thus the currently outstanding finance).
Does anyone have any other advice or options? I'm not too bothered about making any sort of profit on it, I just want to (as close as possible) break even.
Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.
ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.
ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.
0
Comments
-
It's likely that WBAC will actually offer you considerably less than £8,700 when you book an appointment, they start off at this figure and then deduct for any scratches, dents and wear & tear.
You can take it to a couple of dealers and see what they will offer you, get a guide for prices on popular car valuation websites i.e. parkers, whatcar, autotraders etc0 -
It's likely that WBAC will actually offer you considerably less than £8,700 when you book an appointment, they start off at this figure and then deduct for any scratches, dents and wear & tear.
You can take it to a couple of dealers and see what they will offer you, get a guide for prices on popular car valuation websites i.e. parkers, whatcar, autotraders etc
Yeah I figured that was the case, it was just the first thing that came to my head to get a figure that a dealer might be willing to offer.
Completely forgot Parkers existed! Went on there and it said Part-Ex value would tend to be £9,600 so I might be able to convince the dealer I bought it from to just buy it from me. I'll give them a call tomorrow and find out.Credit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.
ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.0 -
I think (but not 100% sure) that it's against the law to sell a vehicle with outstanding finance, as you do not own it until the finance is all paid. I'm no expert though, so best to check that for yourself.
If I were in your shoes, I'd simply pay off the finance with a personal loan (or some other borrowing like 0% credit cards) and then sell it privately. Then use the sale proceeds to pay off the loan or cc.
I can't imagine there will be many buyers who would pay off the finance agreement over the phone for you. Though I can see your logic, I certainly wouldn't.0 -
I think (but not 100% sure) that it's against the law to sell a vehicle with outstanding finance, as you do not own it until the finance is all paid. I'm no expert though, so best to check that for yourself.
If I were in your shoes, I'd simply pay off the finance with a personal loan (or some other borrowing like 0% credit cards) and then sell it privately. Then use the sale proceeds to pay off the loan or cc.
I can't imagine there will be many buyers who would pay off the finance agreement over the phone for you. Though I can see your logic, I certainly wouldn't.
You can sell a car on finance! Certainly not against the law!
As for someone paying it over the phone, the buyer should always be the one paying the company direct! That way you know it is completely paid off!
It is a fairly straight forward thing to do as well - you still carry out the same care and attention as if you were handing over a wad of cash to someone!0 -
Dealers tend to make a 2k profit on each car from expeerienceDon't put your trust into an Experian score - it is not a number any bank will ever use & it is generally a waste of money to purchase it. They are also selling you insurance you dont need.0
-
yoshiyella wrote: »It is a fairly straight forward thing to do as well - you still carry out the same care and attention as if you were handing over a wad of cash to someone!
Perhaps it is, but I'd certainly be very cautions buying a car like that. I'd require them to provide an up to date full hpi certificate to double check if there's nothing else outstanding/ out of ordinary.0 -
Perhaps it is, but I'd certainly be very cautions buying a car like that. I'd require them to provide an up to date full hpi certificate to double check if there's nothing else outstanding/ out of ordinary.
Surely you would do that for any car you buy anyhow?
Like I said if you do your usual due dilligence on any car you buy surely it should not matter about the finance. I do a HPI check on every car I buy!0 -
The difficulty with that is that I already know that I'm leaving the country and I'd be committing fraud by not telling them when making the application (and if I did tell them, they would not finance me). I am able to access that much money through family or liquidating assets, but I'd rather not if I don't have to (plus then I run the risk of not selling the car quickly).I think (but not 100% sure) that it's against the law to sell a vehicle with outstanding finance, as you do not own it until the finance is all paid. I'm no expert though, so best to check that for yourself.
If I were in your shoes, I'd simply pay off the finance with a personal loan (or some other borrowing like 0% credit cards) and then sell it privately. Then use the sale proceeds to pay off the loan or cc.
I can't imagine there will be many buyers who would pay off the finance agreement over the phone for you. Though I can see your logic, I certainly wouldn't.
Yeah I spoke to the dealer I bought it from today and they think they'll be able to buy it from me for what I owe, just need to confirm with a manager tomorrow.Dealers tend to make a 2k profit on each car from expeerienceCredit 'Score' - Don't buy the credit 'score' that Experian, Equifax and Noddle want to sell you. It's an arbitrary number that means nothing when it comes to applying for credit.
ALWAYS HAVE A DIRECT DEBIT SET UP FOR THE MINIMUM PAYMENT ON YOUR CREDIT CARDS, REGARDLESS OF WHETHER YOU PLAN TO LOGIN AND PAY EACH MONTH.0 -
yoshiyella wrote: »Surely you would do that for any car you buy anyhow?
Like I said if you do your usual due dilligence on any car you buy surely it should not matter about the finance. I do a HPI check on every car I buy!
I don't buy cars privately. Have a good relationship with a local trader so HPI checks are not that important to me.0 -
If it is a HP (Hire Purchase) then you most definitely cannot sell it.....for the simple reason that you don't own it yet! You cannot pass clean title to something if you don't have clean title yourself.
Under an HP, title only passes to the buyer on the payment of the token "purchase option" at the end of the agreement.
So in order to sell the car you will need to settle the outstanding payments and pay the purchase option prior to selling the car. In practice this can be done directly by the buyer to the finance company - but it is something that makes buyers understandably nervous. Best to speak to the finance company and ask their advice on how best in practice to achieve what you want.
So going to a dealer may be the best option as they know how to sort such things.0
This discussion has been closed.
Confirm your email address to Create Threads and Reply
Categories
- All Categories
- 350.1K Banking & Borrowing
- 252.8K Reduce Debt & Boost Income
- 453.1K Spending & Discounts
- 243.1K Work, Benefits & Business
- 597.4K Mortgages, Homes & Bills
- 176.5K Life & Family
- 256K Travel & Transport
- 1.5M Hobbies & Leisure
- 16.1K Discuss & Feedback
- 37.6K Read-Only Boards