Selling a Hire purchase car.

Cornucopia

A VT is a specific option built into such finance agreements by law which enables you to cancel the agreement once 50% of the amount borrowed has been paid AND you give the car back to the Finance Company.

As such, no, you cannot sell the car to WBAC.

dawebo

Thank you, this is the answer i've been searching for. Sorry for maybe confusing you, but the guy I saw at WBAC just wanted to buy the car and wasnt interested in helping with any questions I had! Much appreciated.

motorguy

dawebo wrote: »

I actually come out with a decent amount of money to be honest. What im more concerned about is that with a hire purchase the car is not technically mine... so how is the remaining balance mine? If i was to continue paying until the end of the agreement and then decide to give the car back rather than pay the balloon charge for the car I wouldnt get any money. But doing it this way with WBAC i get nearly £3000. Why wouldnt everyone do this?

How much was the car initially? How much deposit did you put in? What were the monthly payments? How long was it over?

oldhand

worried_jim wrote: »

and WBAC will probably be pulling your pants down to spank you on the deal.

No that costs extra.....;);)

motorguy

dawebo wrote: »

But doing it this way with WBAC i get nearly £3000. Why wouldnt everyone do this?

Somewhere along the line, you've put a lot of equity in to the deal in the form of a big deposit or trade in.

forgotmyname

You cannot VT the car and sell it to WBAC.

Seems you have the VT figure which is 50% of the price. If you VT you have to hand the car back to the finance company. Paying £2500 to not use their car. Seems silly.

Sell it to WBAC and the finance will say we want our £8000... or whatever you owe.

MataNui

Sounds like its not a settlement figure in the way you understand it. Sounds like a VT figure to me. In other words you pay this to the finance company to get out of the finance agreement and they take the car.

As you suspect the car is not yours to sell and you cant sell it to WBAC. The figure you have been given is the figure to reach the 50% that allows you to just hand the car back.

If you sell the car then you will likely still owe the finance company several thousand on top of the 2.5k WBAC will pay them.

It sounds more like a PCP deal that you are into. The car is not yours to sell.

macman

OP mentioned a 'balloon payment', which indicates to me that the deal is a PCP and not HP.

neilmcl

macman wrote: »

OP mentioned a 'balloon payment', which indicates to me that the deal is a PCP and not HP.

True, but bear in mind that in reality PCP is actually a form of HP and most contracts will be headed as a Hire Purchase agreement.