car on higher purchase

olavbear

i bought a car on higher purchase , amd i allowed to sell it ? as somone told me that it belongs to the bank , but im paying the installments everymonth surley i can sell the car but continue to pay the instalments on the car ?????????

margaretclare

Any item bought on hire-purchase is not yours to sell until you've made the final payment, therefore you can't sell it.

Aunty Margaret

grumbler

You already got the same answer on other board.
Why do you think that you will get the different answer here?

mummytofour

If you want rid of the car, depending on your reasons, you can take it back to the garage you got it from and they maybe able to help, by buying the car back off you, it depends how much you owe on the car and if the car is worth more than you owe.
If the car is not worth as much as you owe, but you have paid 50% of what is owed under the agreement then you can give the car back to the finance company.
The car doe snot belong to you, as you owe money on it.
If you wish to selll it on the open market then you will need to settle the finace first, maybe get a loan to pay the finance off??
Vxx

Robert_Sterling_3

You got a loan from the bank.
Someone bought the car from the garage.
They own the car.
If you fullfill some conditions the car becomes yours in due course.

I like the way you bought it by HIGHER Purchase rather than the more conventional HIRE Purchase.

starlite_2

Robert_Sterling wrote:

I like the way you bought it by HIGHER Purchase rather than the more conventional HIRE Purchase.

He he..yes ...but perhaps 'higher purchase' is a more accurate term?

Sarahsaver

Freudian slip eh? If it's on HP it doesnt belong to you, like a house on a mortgage, its yours when its paid for.

starlite_2

Sarahsaver wrote:

Freudian slip eh?

lmao...especially if you 'say yes' if you know what i mean....

Ivenofinmoney

mummytofour wrote:

If the car is not worth as much as you owe, but you have paid 50% of what is owed under the agreement then you can give the car back to the finance company.

This is absolutely true, and a little known fact, that the garages & finance companies won't freely tell you.

My experience....
Just before we got married, we were lokking for ways to free up some cash to put towards the cost of the wedding, at a combined monthly cost of £750 our cars seemed the most obvious targets.

I had purchased mine with a unsecured loan, with a re-payment rate designed to match the depreciation, so sold car & cleared loan - Easy !!

The OH had got hers on HP (26% APR :eek: ) before we got together, I spoke to the original garage, and they said, they could sell the car on her behalf, and we would have to make up the difference. :eek: with the balloon payment that was going to be rude :mad:

I then discovered the 50% rule (law for all Hp purchases), and went back to the dealer - 'ah erm yes - you could do that of course... speak to the finance company'

I wrote to then credit company and asked for a full statement of the account, we had two months left of payments to reach the 50% mark, the day after the payment was made I contacted the credit company and told them I wanted to exercise my right to return the goods.

They tried to make it difficult, suggesting I would have to pay 1.50 a mile return for collection from a local dealer, but I asked where it would be delivered to and they eventually gave me a date and location of where to return the car.

Some jobs-worth crawled all over the car, and pointed out that somebody had breathed on it the wrong way....

I got caught out and paid up £32, but have since been told that you should dispute everything and get them to prove it's not reasonable wear and tear.

Not quite as easy as settling the Loan, but better than being confined to an overpriced car for several years.

- Just to finish the story... I spent the 1st months savings on two bangers (Montego £100 & Escort XR3i - £250 both with 12 months MOT) drove them for a year and by the time the MOT's expired the wedding had been paid off, and we updated our cars again.

But having covered 20,000 miles in the Montego, it was the cheapest motoring I have ever had, I'm now paying more a month in tax for my company car, wish I could get the cash instead and get another £100 banger


An interesting point to note, the place I returned it too was an Auction house, I asked jobsworth how much it would fetch and he said about £1800 (around £3.5k less than the outstanding finance) - could be an intersting way to save some cash, get out of a scary finance deal and keep the same car. - But not for the feint hearted, if your not into car Auctions

Debt_Free_Chick

Ivenofinmoney wrote:

This is absolutely true, and a little known fact, that the garages & finance companies won't freely tell you.

It's in the finance agreement. I know it's dull etc, but you can hardly say that they "won't freely tell you".. it's in the small print with all the other boring - but vitally important stuff, such as the part that tells you that you don't own the car until you've paid off all you owe

YorkshireBoy

Debt_Free_Chick wrote:

It's in the finance agreement. I know it's dull etc, but you can hardly say that they "won't freely tell you".. it's in the small print with all the other boring - but vitally important stuff, such as the part that tells you that you don't own the car until you've paid off all you owe

I'm another "saddo" that reads the small print, and yes it's written in the agreement - quite prominently in my case with Ford Motor Credit.

The way that Ford make it less attractive to hand the car back through this "loophole" though is that they ask for a 35% deposit and then balance over 3 years @ 0%. So, whilst you may have paid off half the finance, don't forget the big payment you made at the outset.

On this basis, it will nearly always be more profitable to sell (with the lenders permission) than "give it up" after paying 50% of the finance.