Help selling car/getting out of Just Add Fuel

RUSS56

Justaddfuel is a finance agrement NOY a lease because at the end on the final payment ( not rental) is whats called the option to purchase fee !

You are free at anytime able to seel the car provided yu settle the outstanding finance , If you express an interest in sttling early this used to a calculation called " the rule of 78" working out how much interest to take off

Thats just the way life works by enter contract sign finanance aggreement etc ? You are having only one headache trying to seel a car ???? I magine if you were the salesman with a forecourt full of the sods ?? lol

londonTiger

RUSS56 wrote: »

Justaddfuel is a finance agrement NOY a lease because at the end on the final payment ( not rental) is whats called the option to purchase fee !

You are free at anytime able to seel the car provided yu settle the outstanding finance , If you express an interest in sttling early this used to a calculation called " the rule of 78" working out how much interest to take off

Thats just the way life works by enter contract sign finanance aggreement etc ? You are having only one headache trying to seel a car ???? I magine if you were the salesman with a forecourt full of the sods ?? lol

As I buyer I would not buy a car from someone who has it on finance and is leaving the country. You would have to have a LOT of faith in random strangers. Because it might be tempting for the lessor to just scarper with the revenue and not pay off finance.

Plus the value of sale will no way cover the cost of outstanding balance anyway because the monthly payments will have road tax, insurance bundled in. Whereas buy is only going to pay for the car.

Unfortunately life isn't so simple as "just add fuel", you'll have to contact the dealer/finance company and settle. Hopefully they will be nice with the current value of the car and reduce that from balance owed.

If they are going to screw you with the settlement then you might want to buy the car back (with settlement) and then sell the car yourself.

The right way to sell the car on is to FIRST pay off the remaining contract and buy the car from the finance company and then sell on. This will give you the go ahead to sell it to dealers/webuyanycar as the hpi will hopefully be clear.

If you try to sell the car first without settling, a dealer will not touch it.

motorguy

There is so much willfully wrong with this post, that its mis-advice. :eek:

londonTiger wrote: »

As I buyer I would not buy a car from someone who has it on finance and is leaving the country. You would have to have a LOT of faith in random strangers. Because it might be tempting for the lessor to just scarper with the revenue and not pay off finance.

The ABSOLUTE way to do it is to pay the finance company, and get an email / letter from them confirming they have no further financial interest in the car. Its done all the time.

Paying the seller in the hope they are going to clear the finance would be silly

londonTiger wrote: »

Plus the value of sale will no way cover the cost of outstanding balance anyway because the monthly payments will have road tax, insurance bundled in. Whereas buy is only going to pay for the car.

You pay for the insurance as a monthly set amount. That should be removed from the amount remaining by the finance company and a discount given for early settlement.

londonTiger wrote: »

Unfortunately life isn't so simple as "just add fuel", you'll have to contact the dealer/finance company and settle. Hopefully they will be nice with the current value of the car and reduce that from balance owed.

There is no need to contact the dealer. The finance company are the people to talk to. They have a legal obligation to offer a reduced "settlement figure" for early repayment, so "hope" doesnt come in to it.

londonTiger wrote: »

If they are going to screw you with the settlement then you might want to buy the car back (with settlement) and then sell the car yourself.

They cant, legally, screw you. Also what would the difference be in buying the car back then selling it? Other than you'd have to find all that cash? Simply have the buyer pay the finance company and pay any difference between value and amount owed at the same time.

londonTiger wrote: »

The right way to sell the car on is to FIRST pay off the remaining contract and buy the car from the finance company and then sell on. This will give you the go ahead to sell it to dealers/webuyanycar as the hpi will hopefully be clear.

No. That is "a" way to do it, but not the only or "right" way.

londonTiger wrote: »

If you try to sell the car first without settling, a dealer will not touch it.

No. Absolutely no. Any dealer will take the car and clear the finance, with the seller paying them any difference due.

How else would "any" trade in work? "Hello, i'd like to trade in my 3 year old car for a new one, but i've some finance outstanding". "No, sorry, you'll have to clear the finance first!" :rotfl:

They wouldnt do much business would they?

samc01

Motor guy! One person who knows what they're talking about. People, you can either pay off the finance over the phone with the finance company and the buyer or clear it and the let the buyer pay the agreed figure.

I've had these agreements for the last 8 years and they've been ideal for me but this opportunity is to good to pass up. So I'm willing to make a loss.

I had it on autotrader and they told me my car didn't sell because we'd priced it too low! Ridiculous.

Appears my only options are to keep looking for a buyer or look into whether I can keep it in a garage with no insurance or tpft and just pay the finance. Bah!

If anyone has found themselves in a similar situation and has a solution or some advice, I'd love to hear from you.

motorguy

samc01 wrote: »

Motor guy! One person who knows what they're talking about. People, you can either pay off the finance over the phone with the finance company and the buyer or clear it and the let the buyer pay the agreed figure.

I've had these agreements for the last 8 years and they've been ideal for me but this opportunity is to good to pass up. So I'm willing to make a loss.

I had it on autotrader and they told me my car didn't sell because we'd priced it too low! Ridiculous.

Appears my only options are to keep looking for a buyer or look into whether I can keep it in a garage with no insurance or tpft and just pay the finance. Bah!

If anyone has found themselves in a similar situation and has a solution or some advice, I'd love to hear from you.

I think you're doing everything i would do. You could try gumtree and ebay motors if you havent already, and yes, ultimately, put it in storage.

My son went to Slovenia for six months and we just kept his BMW in our garage for six months. We let the MOT lapse and SORN'd it offroad. I think we kept the insurance running, relative to building up his no claims. I started it every couple of weeks, and turned it around in the drive and put it back in.

MobiusPizza

Anyone can terminate a regulated financial agreement, be it hire purchase or PCP, if one has settled at least half of the finance including interest, etc and one simply return the vehicle. This is called a voluntary termination and is covered by the Consumer Credit Act 1974, Section 99.

motorguy

MobiusPizza wrote: »

Anyone can terminate a regulated financial agreement, be it hire purchase or PCP, if one has settled at least half of the finance including interest, etc and one simply return the vehicle. This is called a voluntary termination and is covered by the Consumer Credit Act 1974, Section 99.

You can VT a car at ANY time. The finance company can only pursue you for half the total amount - subject to fair wear and tear.

Also, its not "half the finance including interest", its half the total transaction amount including deposit, interest, amount borrowed and fees.

MobiusPizza

motorguy wrote: »

You can VT a car at ANY time. The finance company can only pursue you for half the total amount - subject to fair wear and tear.

Also, its not "half the finance including interest", its half the total transaction amount including deposit, interest, amount borrowed and fees.

Thanks, you are right about terminating it any time. I think it is 50% of the total amount borrowed plus interest and fees, and also includes the Guaranteed Minimum Future Value on a PCP. This should not include the deposit as the deposit is paid by the debtor already. Otherwise if I put a deposit of £3000 on a £3100 car and only finance £100, suddenly I have to shell out £1550 to get out of finance, which is absurd and of course incorrect.

motorguy

MobiusPizza wrote: »

Thanks, you are right about terminating it any time. I think it is 50% of the total amount borrowed plus interest and fees, and also includes the Guaranteed Minimum Future Value on a PCP. This should not include the deposit as the deposit is paid by the debtor already. Otherwise if I put a deposit of £3000 on a £3100 car and only finance £100, suddenly I have to shell out £1550 to get out of finance, which is absurd and of course incorrect.

No. You've confused yourself. Where you are relative to the "half" value includes deposit and payments made.

If you put down £3,000 on a £3,100 car, you could hand the car back at any time with nothing further to pay as your deposit + payments (£3,000 + £0) had taken you over half the total transaction amount of (£3,100 + interest + fees)

Also dont introduce the notion of amount borrowed AND minimum / guaranteed future value on PCP - that GFV makes up part of the amount borrowed.