Car on HP - Can I sell privately

Euro64

Hi- I'm a newcomer to this forum looking for advice

I have a car which I'm buying on a HP agreement but have recently been given a company car through my work

I have a settlement figure for the car which is roughly about 5-10 % above the value of the car if I was to sell it to a dealer.

I know that I could sell the car privately for a far higher value (anything up to £1500 more) so I would much prefer to sell the car privately

Would it be legal to sell the car privately providing the buyer was aware at all times that there was outstanding finance and that the finance would be settled with the sale -(I would ask the buyer to pay the finance company directly )

Apart from the fact that I would gain a small amount of money I'm also aware that a motor trader would also get a discount on the settlement from the finance company so I'm loath to line the pockets further of someone who is going to make a tidy profit.
So would it be legal to sell privately providing the finance was settled immediately

Thanks in advance

CLAPTON

You don't own the car... the HP company does.
You can only sell the car with the HP company's permission.

Euro64

CLAPTON wrote: »

You don't own the car... the HP company does.
You can only sell the car with the HP company's permission.

That's why I would suggest that the buyer settles the finance directly

Would I be breaking the law doing this ?

HeadInSand_2

Yes, it would be fine selling to a private buyer as long as they are fully aware and pay the finance company directly. Only downside to that is the buyer may get nervous/suspect some form of scam if asked to make payment to some random company and not want to go through with sale, so expect to sell a little below market value for this.

Edit - this is based on my friend having done this very thing - I guess some finance companies may have differing terms, so double check first.

Euro64

CLAPTON wrote: »

You don't own the car... the HP company does.
You can only sell the car with the HP company's permission.

So does that apply to part exchange
or selling the car to a garage who will pay off the finance then make a huge profit on the car as well as claiming a discount on the HP settlement

I am aware that I don't own the car - that's why I used the phrase "I have a car which I am buying on a HP agreement"

tupperware

Of course you could sell a vehicle to somebody who was planning on paying the funds straight to the finance company.

Anybody can make a payment onto an account and if the finance company recieve their funds they will release the title.

The only problem you may have is getting somebody to agree to it.

Cantdance_2

I did exactly this about 18 months ago.

What I did was get the buyer to meet me at the bank with £5,500 cash, I then paid it directly into my account over the counter and then rang up Peugeot and paid the finance off on my mobile while the buyer was still standing there.

Admittedly, I sort of knew the person as I advertised the car on my work classifieds, but even so I wouldn't see a problem.

I can see how people might be wary of this but it probably happens a lot these days.