Re selling car with fince?

fzbob

Hi I'm in the situation where I'm finding it hard (very) to pay a loan on a car I stupidly purchased on finance a while ago, same as a guy in a thread last January, wanting to sell his car while in finance. Unfortunately as I am relatively new to posting (not reading ) on this forum, so I can't post a link to it.
The thread is now locked/closed.

Anyway, I'd like to know the outcome of his selling the car with finance on it?
His name is Bells& Whistles.;)
If he/you are still on this forum, would you let me know how it all worked out for you please?

Stevie_Palimo

If you have finance outstanding on a car this must be cleared prior to you receiving anything so lets say the car is worth around £7500.00 for arguments sake and you have approx. £3000.00 on finance still owed then if you take your car to a reputable dealer and they offer you around £6000.00 they will then pay the finance Company directly and give you the difference.

FireWyrm

It is illegal to sell a car with outstanding finance on it as you do not own the asset. You will have to clear the finance first and THEN sell it. If you do sell the car with finance attached, the buyer will be rightly peeved with you because they wont own it either and it can be legally recovered by the true owner (the finance company). You could land yourself in all sorts of hot water.

Stevie_Palimo

FireWyrm wrote: »

It is illegal to sell a car with outstanding finance on it as you do not own the asset. You will have to clear the finance first and THEN sell it. If you do sell the car with finance attached, the buyer will be rightly peeved with you because they wont own it either and it can be legally recovered by the true owner (the finance company). You could land yourself in all sorts of hot water.

My mate had a car on HP and asked for a clearance amount on the outstanding finance and had it paid by a dealer to the finance Company who purchased his car and he got a cheque for the difference.

sourcrates

Yes you can take the car to a dealer, and if the dealer wants to buy it, they can, as long as the outstanding finance is settled by the dealer.

I have also done this a few years ago, perfectly legal, you usually obtain a settlement figure first from the finance company, in writing, the dealer then settles the finance, and gives you any remaining balance.

They can do this as the dealer never registers the vehicle as there's, as they usually sell them on.

FireWyrm

IF you use a dealer. If you sell it to someone on the street, expect blowback.

Stevie_Palimo

FireWyrm: My opening post states dealer and not private sale so the point you made whilst reflecting a private sale does not apply here.

Sourcrates: My posts both stated the part you mimicked so not sure why you duplicated it.

sourcrates

fzbob wrote: »

Hi I'm in the situation where I'm finding it hard (very) to pay a loan on a car I stupidly purchased on finance a while ago, same as a guy in a thread last January, wanting to sell his car while in finance. Unfortunately as I am relatively new to posting (not reading ) on this forum, so I can't post a link to it.
The thread is now locked/closed.

Anyway, I'd like to know the outcome of his selling the car with finance on it?
His name is Bells& Whistles.;)
If he/you are still on this forum, would you let me know how it all worked out for you please?

Go for a trawl around a few dealers and see what they can do for you.

If you haven't had the car long, there may be a fair bit of interest to repay, you can ask for a settlement figure from the finance company, without going through with the sale, if you don't want to.

National_Debtline

If the car is subject to hire purchase or any form of conditional sale agreement then you would need to get the finance companies written consent before any sale. If the sale price is less than the outstanding finance you have another decision to make because the shortfall would become due immediately and failure to pay this could have a negative impact on your credit file and result in further enforcement action.


Finance is quite a general term and doesn't necessarily mean hire purchase, so just to make sure I am covering as many options as possible I would also say that if the car was purchased with a personal bank loan then the finance and the item are not linked which means you can sell the car at your own discretion. Make sure you check your contract before doing anything.


Laura
@natdebtline

MataNui

It looks like most posters have been replying presuming you will get the difference between what you sell it for and what you owe. Based on the typical interest rate paid on these contracts and the average depreciation of a car it is far more likely you will in fact be offered less (perhaps significantly less) than the settlement figure.

As the finance must be cleared for the garage to gain good title and be able to sell it on then the most likely outcome is you will be paying the garage to take the car off your hands. Other people have posted in similar situations and the shortfall is typically a few thousand

5erge

Similar thing happened to me I had a car with finance but the dealer offered me less than the settlement figure (only by £150) but I decided to sell the car back to VW, pay the £150 I owed and walked out of the garage with the weight of car finance off my shoulders. The best thing I ever did.


I now drive round in £1000-£2000 BMW's that I own outright and they are just as good as a brand new motor, aircon, ABS, leather, decent MPG etc...


A new car is nice for a couple of weeks, then it's just another car.


Des