Cazoo and outstanding finance

baild

Afternoon all, happy Tuesday!

I've been given a quote by Cazoo and i'm interested in selling to them. I've come to the realisation that there's no point paying for a car that isn't used and the money would be better off going towards a mortgage deposit. I'm halfway through my HP agreement, so i could voluntarily terminate, but Cazoo are offering me what the car was worth 2 years ago and it seems too good to pass up.

My only question however, is that there's outstanding finance. The figure i've been given by Cazoo is more than enough to clear the settlement figure and buy a little runaround. I've just called Cazoo and talked through the process, but they said that it can take up to 7 days for them to send payment to the finance company and that's got me on edge. I was wondering whether anyone here has done this before and if so, was there any issues from the finance company? Do i need to let them know, or just let things take it's course?

Thanks in advance!

Robbo66

I have in the past but not with cazoo, you must keep the direct debit active. If payment is taken before cazoo pay off the finance this will reduce the settlement figure and they will refund any over payment.

[Deleted User]

Do check you can VT it, you have to reach 50% of the total value including interest which is typically not reached until towards the end of a PCP deal, it is not 50% of the way through e.g. 21 months into a 42 month contract

ontheroad1970

No point in VT if you can sell it for more than the amount outstanding.

Goudy

It's not unusual.
We Buy Any Car pay any outstanding finance after 4 days.

Why they do this is anyones guess but I reckon it's in hope you make another monthy payment between handing it over and them settling the finance.
They won't automatically over pay based on the figure you owed at the time you agreed to sell, they'll recheck the settlement figure when making the payment.

If you think about it, if they wait 7 days there is something like a 1 in 4 chance you would have made another payment in this time and if they handle hundreds of similar deals each year, they'd make a pretty penny.

You will also find the finance company won't unregister you and their interest in the car for a while after settlement either, in case the payment is dragged back for whatever reason.

Herzlos

I don't know if they *can* check for a new settlement figure, because they aren't really a party to the original loan.
They'll pay the agreed figure, and your finance company will refund you any extra.

They presumably delay the payments to skim a little bit of interest, keep a cash float and to make the payments in a batch which should also be cheaper.

Goudy

You can be sure they won't take the sellers word for what finance is outstanding!

They have access to various tools that give them up to the minute data on a cars finance status.

One such tool is Carveto.
It'll tell them who financed it, the agreement number, date of agreement, payments and other details like if it was consumer finance or a stock loan.
It even gives them the phone number of finance company.

If you've ever tried trading in a car on finance, it'll only take the dealer minutes to check themselves without any input from yourself. 

baild

Apologies all. I thought i would come back with a bit of an update. The sale went ahead and it couldn't have been easier. I dropped the car off on Tuesday at the Cazoo site in Bishop Auckland, they had a quick look around and confirmed that i wanted to go ahead with the sale. As soon as they pressed the button on the iPad, the positive equity was paid into my account and i've just checked this morning and the finance has been settled!