Selling a car currently on PCP for a friend

Elika0215

I have a friend that I totally trust with everything...except money. He's blown an absolute fortune, relative to what I consider a lot of money, and is blinded by big-money schemes. People around him have tried to help after receiving multiple guarantees of repayment only to have been ignored and avoided once deadlines have passed. You'll see why that's relevant in a mo!

He now wants to sell his car which he currently has on PCP finance and as he's never had an ebay account, has asked me if I can do it.

So, I now have the ad saved as a draft on ebay under my account.

When the car sells and payment is made, isn't there an obligation to repay the PCP loan in full? If so, are there any implications on me as the seller and recipient of funds (I'll then transfer it to him) if he chooses to pocket the money rather than repay the PCP?

Frankly, I think it'll be sold, PCP paid off and job done. I really want to help so don't want to refuse unless there's a clear risk on my part.

AdrianC

It's not his car to sell. Don't get involved.

Get him to look into VT instead.

neilmcl

Elika0215 wrote: »

I have a friend that I totally trust with everything...except money. He's blown an absolute fortune, relative to what I consider a lot of money, and is blinded by big-money schemes. People around him have tried to help after receiving multiple guarantees of repayment only to have been ignored and avoided once deadlines have passed. You'll see why that's relevant in a mo!

He now wants to sell his car which he currently has on PCP finance and as he's never had an ebay account, has asked me if I can do it.

So, I now have the ad saved as a draft on ebay under my account.

When the car sells and payment is made, isn't there an obligation to repay the PCP loan in full? If so, are there any implications on me as the seller and recipient of funds (I'll then transfer it to him) if he chooses to pocket the money rather than repay the PCP?

Frankly, I think it'll be sold, PCP paid off and job done. I really want to help so don't want to refuse unless there's a clear risk on my part.

You/he can't sell the car without informing the finance company, the car belongs to them. Even if they let you, the finance must be cleared before you can handover the car, you'll also may find relatively low interest in a car advertised with PCP finance attached to it.

Nodding_Donkey

So you are going to help him commit fraud OP?


Nice.


ETA Ask yourself why he doesn't just register for an eBay account. It's not exactly onerous.

k6chris

Just to be VERY clear - the car does NOT belong to him! The car belongs to the finance company and he has an agreement with the finance company to use it. If he (or you) try and sell the car as belonging to him (you), when it belongs to someone else, you are commiting fraud! He can however approach the finaance company and see what the options are for ending the agreement.


Sorry to be blunt, but he and you need to be very clear on this!

TheTalkingDead

Whilst the car is not his to sell if you go ahead your complicit in a fraud the type of "mate" you have is the first person who will drop you in it to shift blame off himself when confronted by fraud officers. Simply dont do it, I wouldn't.

Elika0215

Oh my god! Thank you. I'll walk away.

foxy-stoat

I do hope that anyone interested will do a HPI check prior to buying it....or I can see pain for everyone involved.

Remind him that finance needs to be clear before the car can be signed over to the new owner.

Herzlos

Essentially what needs to happen is that before he sells the car, he contacts the finance to get a settlement figure, then once the car sells he phones the finance company and makes the settlement payment, and then signs the car over to the new owner.


If he's not almost at the end, he may be paying more than he's getting.


For the reasons above, you'll find few private buyers interested, so you might be best trying to sell to someone like webuyanycar.com who'll rip him off spectacularly.


Why is he selling it? no longer affordable? Has he checked if he's in a position to Voluntarily Terminate it?

Elika0215

Sorry to drag this out but this is his response when I said he needed to go to the finance company. "What I do is get a settlement letter from the loan company and buyer pays them direct with any surplus to me.".

Does that sound legitimate?

k6chris

Elika0215 wrote: »

Sorry to drag this out but this is his response when I said he needed to go to the finance company. "What I do is get a settlement letter from the loan company and buyer pays them direct with any surplus to me.".

Does that sound legitimate?

Here is a link that might help:


https://www.autotrader.co.uk/sell-my-car/advice/how-can-i-sell-a-car-with-outstanding-finance


I think the first thing he needs to do is to get an actual settlement figure in writing. I would then get 3 or 4 quotes from specialist companies that buy cars with finance still on them (Google "selling car with finance on"). They will give him a quick valuation.


Get him to do these 2 things first and see what the figures say. Selling a car on eBay is not straight foward (a lot of tyre kickers and time wasters) and many people use the companies above to reduce the hassle factor. This is 100% the route I would go down.


Good luck!