Car loan

loza990

ive got a car loan but my head gasket has gone on the car. Where do i stand if i was to sell the car. Im getting no answer from the loan company or the car garage i brought it from. Ive not even had the car 2years but seem to of had nothing but problems with it

Grumpy_chap

If you sell the car, you will still need to repay the loan in full.

Nearlyold

Its probable that you can't sell it without fully paying off the loan but it does depend on what type of Car Loan you have.

Check your finance documents - if it's Hire Purchase or Conditional Sale (or a PCP based on either of those agreements) you can't sell it without also having to fully pay off the loan.

If it's a Fixed Sum agreement you own the car so you can do what you like with it, you'll still have to pay the loan of course but your normal monthly payments can just continue as before to eventually clear the loan.

loza990

Nearlyold said:

Its probable that you can't sell it without fully paying off the loan but it does depend on what type of Car Loan you have.

Check your finance documents - if it's Hire Purchase or Conditional Sale (or a PCP based on either of those agreements) you can't sell it without also having to fully pay off the loan.

If it's a Fixed Sum agreement you own the car so you can do what you like with it, you'll still have to pay the loan of course but your normal monthly payments can just continue as before to eventually clear the loan.

Ive just checked its a hire purchase

Nearlyold

Okay - you need to consider your options.
What car is it?  Current Mileage? How much will it cost to fix it?  What's it worth fixed? What's it worth unrepaired? What's the finance settlement figure - ring the lender & ask.
If you get shot of it and manage to clear the loan - do you need and can you afford to buy a replacement vehicle?

barrymckeown83

I am paying a balloon payment for a xar on pcp via a personal loan. On applying for the loan, do i need to declare the outstanding hp balance as a loan even though i will be paying this off with the new loan? 

barrymckeown83

My apologies for posting my previous comment on this thread. Wrong place.

MinuteNoodles

barrymckeown83 said:

I am paying a balloon payment for a xar on pcp via a personal loan. On applying for the loan, do i need to declare the outstanding hp balance as a loan even though i will be paying this off with the new loan? 

Yes. You're effectively consolidating the existing finance into the new borrowing and as there's no guarantee that once you have the money you'd use it for the purposes intended they'll treat the total debt for affordability checks as being the loan you're applying for plus the outstanding HP on the car.