Selling but still owe money

Biollante21

Apologies if this is in the wrong section but i couldn't see anywhere else to put it
I treated myself to a new car 12 months ago (15 plate Merc A180) which i got on finance over 5 years
In May i start a new job which comes with a company car so am faced with what do i do with my car?
Keeping mine and having the company pay for it is not an option so i am faced with selling it as there is no point me having 2 cars
With me still owing 4 years on it i obviously have that problem to face up to
I am quite happy to sell it privately and have the buyer sit next to me while i phone and pay it off as selling that way i would get a much better return than selling it to We Buy Any Car or even back to Mercedes or another dealer
What are the things i need to know before selling it?
Mercedes have already said i will be in negative equity if i decided to sell it back to them but i got a quick quote off Auto Trader on what to ask for as a price and it is over what i owe on it
I don't have the money to pay it off (£11,500.00) so am a bit stuck
Just to be clear i can keep up the payments on the car without any problem but there is no point me doing this

sheramber

Can you get a bank loan to pay off the car and then sell it?

Biollante21

I already have a loan running and don't want to add to it
Doubt i would be eligible for another 11 grand as well

molerat

Realistically how much will you get for the car and how much is the settlement for the finance ? You need to sort those figures out and get enough money together by whatever means to bridge the gap.

facade

A colleague bought a car like this last year. He was given the settlement figure and paid the finance company directly, got the clear notification, and then paid the seller the difference.

Biollante21

I got a quick guide price from Auto Trader of £13600.00 if i was to sell it privately and obtained a settlement figure of £11700.00 a couple of months ago

I don't have the cash available at the moment to pay off the car and then sell it afterwards

Feel like im stuck between a rock and a hard place at the moment with it
The last thing i want to do is sell it as i really do love the thing but i don't feel like i have a choice

maurice28

Would there be any chance at all of your new employer swapping the company car for a car allowance payment?

motorguy

sheramber wrote: »

Can you get a bank loan to pay off the car and then sell it?

Why on earth would he do that?

As has been said - the way to do it would be to have the purchaser pay the finance company direct over the phone or by bank transfer and thats it sorted

fatrab

I've sold a few cars which had finance on them over the years.

Be completely up front and honest with the person you are selling it to. You're not trying to scam anyone and you're happy for them to pay the outstanding balance directly to the finance company then pay you the leftovers.
Find out how and when you can make the repayment to the finance company - there's no point finding out their call centre is closed on a Sunday afternoon when the buyer is standing in front of you wanting to transfer the cash.
Make sure they'll accept whatever payment method you're proposing. Believe it or not, some of them (Peugeot Finance for example) won't take a card payment, it must be a bank transfer.

Folk buy and sell cars with outstanding finance all the time so don't be too worried about it.

motorguy

fatrab wrote: »

I've sold a few cars which had finance on them over the years.

Be completely up front and honest with the person you are selling it to. You're not trying to scam anyone and you're happy for them to pay the outstanding balance directly to the finance company then pay you the leftovers.
Find out how and when you can make the repayment to the finance company - there's no point finding out their call centre is closed on a Sunday afternoon when the buyer is standing in front of you wanting to transfer the cash.
Make sure they'll accept whatever payment method you're proposing. Believe it or not, some of them (Peugeot Finance for example) won't take a card payment, it must be a bank transfer.

Folk buy and sell cars with outstanding finance all the time so don't be too worried about it.

^^^^^^

Wholly this.

macman

Presumably you don't have to accept the company car-or do you need the car for work-related travel?