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  • FIRST POST
    • daniel94g
    • By daniel94g 6th Feb 18, 7:07 PM
    • 2Posts
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    daniel94g
    Selling a car on PCP
    • #1
    • 6th Feb 18, 7:07 PM
    Selling a car on PCP 6th Feb 18 at 7:07 PM
    I want to sell my car which is currently financed on a PCP. My settlement figure is just over 10k, and the particular make/model is selling for just under that on Autotrader. (I'm not bothered about making any money from selling it)

    I know I cannot sell the car before settling the finance as I don't technically own it, but I don't have the 10k to spare in order to settle the finance before I sell it.

    If I listed it for sale online now, and a buyer then gave me the money for it - would I be able to settle the finance over the phone (with the money the buyer gives me) on the same day as selling the car to them? (before they drive off in it ideally)

    Thanks in advance
Page 1
    • motorguy
    • By motorguy 6th Feb 18, 7:17 PM
    • 16,460 Posts
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    motorguy
    • #2
    • 6th Feb 18, 7:17 PM
    • #2
    • 6th Feb 18, 7:17 PM
    I want to sell my car which is currently financed on a PCP. My settlement figure is just over 10k, and the particular make/model is selling for just under that on Autotrader. (I'm not bothered about making any money from selling it)

    I know I cannot sell the car before settling the finance as I don't technically own it, but I don't have the 10k to spare in order to settle the finance before I sell it.

    If I listed it for sale online now, and a buyer then gave me the money for it - would I be able to settle the finance over the phone (with the money the buyer gives me) on the same day as selling the car to them? (before they drive off in it ideally)

    Thanks in advance
    Originally posted by daniel94g
    I doubt any buyer will hand you 10K on the hope you then clear the finance.

    Easiest way is to have the buyer pay the finance company directly with you adding any shortfall.

    They will then be able to get an email / letter from the finance company saying that they have no further interest in the car.
    • daniel94g
    • By daniel94g 6th Feb 18, 7:23 PM
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    daniel94g
    • #3
    • 6th Feb 18, 7:23 PM
    • #3
    • 6th Feb 18, 7:23 PM
    Thanks for your reply!

    I kinda meant I would settle the finance before they left so they knew it was done, but I see your point there!

    Is it as easy as me phoning them up and saying I have a buyer here who wishes to settle on my behalf then ?
    • motorguy
    • By motorguy 6th Feb 18, 7:47 PM
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    motorguy
    • #4
    • 6th Feb 18, 7:47 PM
    • #4
    • 6th Feb 18, 7:47 PM
    Thanks for your reply!

    I kinda meant I would settle the finance before they left so they knew it was done, but I see your point there!

    Is it as easy as me phoning them up and saying I have a buyer here who wishes to settle on my behalf then ?
    Originally posted by daniel94g
    Yes, it should be. I'd phone in advance and confirm but the buyer should be able to do it over the phone by direct debit or do a bank transfer.

    I
    • Shaka_Zulu
    • By Shaka_Zulu 6th Feb 18, 8:07 PM
    • 1,434 Posts
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    Shaka_Zulu
    • #5
    • 6th Feb 18, 8:07 PM
    • #5
    • 6th Feb 18, 8:07 PM
    This is just hassle for any buyer so be prepared for hard haggling from any prospective buyers. You may not like what they offer you.
    • neilmcl
    • By neilmcl 6th Feb 18, 8:25 PM
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    neilmcl
    • #6
    • 6th Feb 18, 8:25 PM
    • #6
    • 6th Feb 18, 8:25 PM
    Thanks for your reply!

    I kinda meant I would settle the finance before they left so they knew it was done, but I see your point there!

    Is it as easy as me phoning them up and saying I have a buyer here who wishes to settle on my behalf then ?
    Originally posted by daniel94g
    The fact you have it on finance would put most, if not all, private buyers off. You'd be better off selling it back to a dealership or somewhere like webuyanycar, although you will take a hit.
    • motorguy
    • By motorguy 6th Feb 18, 9:10 PM
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    motorguy
    • #7
    • 6th Feb 18, 9:10 PM
    • #7
    • 6th Feb 18, 9:10 PM
    This is just hassle for any buyer so be prepared for hard haggling from any prospective buyers. You may not like what they offer you.
    Originally posted by Shaka_Zulu
    Why would the car be worth any less because its on finance? Whats the difference between paying the finance company and paying the seller?

    If its the right car at the right price it will sell, irrespective of an extra phone call to clear the finance.
    • motorguy
    • By motorguy 6th Feb 18, 9:13 PM
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    motorguy
    • #8
    • 6th Feb 18, 9:13 PM
    • #8
    • 6th Feb 18, 9:13 PM
    The fact you have it on finance would put most, if not all, private buyers off. You'd be better off selling it back to a dealership or somewhere like webuyanycar, although you will take a hit.
    Originally posted by neilmcl
    It shouldnt and it wont. I've sold a car on finance before with no issues. It just needs to be pitched as an easy thing for the buyer to do - which it is.

    The real issue here is the price of the car as most buyers at this price point will want the whole dealer experience - trade in, finance, etc.

    "being better off" by selling it to WBAC could cost the O/P ,s.

    I'd be having a crack at selling it privately first.
    • neilmcl
    • By neilmcl 7th Feb 18, 2:48 PM
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    neilmcl
    • #9
    • 7th Feb 18, 2:48 PM
    • #9
    • 7th Feb 18, 2:48 PM
    It shouldnt and it wont. I've sold a car on finance before with no issues. It just needs to be pitched as an easy thing for the buyer to do - which it is.

    The real issue here is the price of the car as most buyers at this price point will want the whole dealer experience - trade in, finance, etc.

    "being better off" by selling it to WBAC could cost the O/P ,s.

    I'd be having a crack at selling it privately first.
    Originally posted by motorguy
    I'm sorry but unless you're selling something desirable most potential buyers will be putting the phone down before you have the chance to "pitch" how easy it is to deal with the finance. As soon as you mention finance I'd bet 9 out of 10 private buyers would walk away. You're quite correct they shouldn't, but in reality they would.
    • neilmcl
    • By neilmcl 7th Feb 18, 2:51 PM
    • 10,844 Posts
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    neilmcl
    Why would the car be worth any less because its on finance? Whats the difference between paying the finance company and paying the seller?

    If its the right car at the right price it will sell, irrespective of an extra phone call to clear the finance.
    Originally posted by motorguy
    This is the key though, isn't it. If you have an average, run of the mill motor and expecting a good private sale price you wont get a lot of interest when it has finance attached to it.
    • motorguy
    • By motorguy 7th Feb 18, 3:04 PM
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    motorguy
    I'm sorry but unless you're selling something desirable most potential buyers will be putting the phone down before you have the chance to "pitch" how easy it is to deal with the finance. As soon as you mention finance I'd bet 9 out of 10 private buyers would walk away. You're quite correct they shouldn't, but in reality they would.
    Originally posted by neilmcl
    Not what i've found. "I've a settlement figure here for the finance, so its just a matter of you paying them directly - they're expecting a call from whoever buys it".

    Simples.

    Some people may be put off, but (a) not as many as you'd think and (b) they'd then be missing a decent car.
    • motorguy
    • By motorguy 7th Feb 18, 3:06 PM
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    motorguy
    This is the key though, isn't it. If you have an average, run of the mill motor and expecting a good private sale price you wont get a lot of interest when it has finance attached to it.
    Originally posted by neilmcl
    Edited for accuracy.

    Give people no other reason not to buy it, and paying the finance company becomes a mere formality.

    Great car, great price = who do i pay?

    Average car, high price = doesnt matter because it wont sell.
    • motorguy
    • By motorguy 7th Feb 18, 3:08 PM
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    motorguy
    The negativity bemuses me - this is Money Saving Expert.

    The O/P can and should attempt to sell the car privately. It could be worth ,s extra over taking a trade price for it.

    Positive thinking and a belief you're selling a good car at a good price is 95% of the solution here.

    Adapting a "oh it'll never sell" approach means you're dooming yourself to failure from the off.
    • paddycharlie
    • By paddycharlie 7th Feb 18, 4:13 PM
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    • 93 Thanks
    paddycharlie
    But it is the reality. I wouldn't go near any private car sale where the seller has stipulations that I have to pay a finance company. And I would be confident that I would be in the majority.


    Why would anyone bother when they can get the same thing for the same price from another private seller without the hassle? And if it is reduced to a price below all other private sellers it will look a bit dodgy when you add in the finance hassle.


    By all means give it a try and you could get lucky but don't expect the pool of buyers to be anywhere near what you'd get selling it normally. And expect buyers to haggle if they see the finance company issue as a weakness.
    • Tarambor
    • By Tarambor 8th Feb 18, 5:56 AM
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    Tarambor
    Why would the car be worth any less because its on finance?
    Originally posted by motorguy
    It isn't but I know if I'm going to look at a car on finance that nine times out of ten the seller is wanting rid of it because they can't afford it. That means there's a bit of desperation on their side because every month it doesn't sell is another few hundred quid they're paying out which they may not be able to afford in another repayment. That puts me instantly in a strong position especially if I'm stood there with a paper bag full of pound notes.
    • scaredofdebt
    • By scaredofdebt 8th Feb 18, 8:04 AM
    • 980 Posts
    • 403 Thanks
    scaredofdebt
    Personally I'd rather pay the finance company, less trouble having to go to a bank to draw cash out and then the hassle and risk of carrying it around. If the car is a good deal the "hassle" would be well worth it.

    A two minute phone call is nothing to the hassle of finding a car, driving to see it, test drive etc etc etc.
    Make 2018 in 2018 Challenge - Total to date 1,049
    • AdrianC
    • By AdrianC 8th Feb 18, 8:52 AM
    • 17,211 Posts
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    AdrianC
    It's worth less than the finance settlement.
    The buyer will be handing ALL of the purchase price to the financier, then waiting for the OP to hand more over in order for it to be clear.

    This might sound a stupid question - but why not just hand it back...?
    • motorguy
    • By motorguy 8th Feb 18, 9:59 AM
    • 16,460 Posts
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    motorguy
    But it is the reality. I wouldn't go near any private car sale where the seller has stipulations that I have to pay a finance company. And I would be confident that I would be in the majority.


    Why would anyone bother when they can get the same thing for the same price from another private seller without the hassle? And if it is reduced to a price below all other private sellers it will look a bit dodgy when you add in the finance hassle.


    By all means give it a try and you could get lucky but don't expect the pool of buyers to be anywhere near what you'd get selling it normally. And expect buyers to haggle if they see the finance company issue as a weakness.
    Originally posted by paddycharlie
    If you've the right car for sale at the right price and its exactly what the buyer wants, whats the difference between paying the finance company and paying the buyer? At some point theres going to be a leap of faith in bank transferring a large amount of cash to a complete stranger.

    The odds of two otherwise identical cars being for sale at the same time in the same area are quite low for most cars.

    I'd be wholly confident i could sell a car just as easily that is on finance than not and i certainly wouldnt be discounting it extra just because of that. Sorry you dont have that confidence.
    • motorguy
    • By motorguy 8th Feb 18, 10:01 AM
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    motorguy
    It's worth less than the finance settlement.
    The buyer will be handing ALL of the purchase price to the financier, then waiting for the OP to hand more over in order for it to be clear.

    This might sound a stupid question - but why not just hand it back...?
    Originally posted by AdrianC
    I'm assuming he hasnt hit the 50% marker yet - but worth clarifying by the O/P
    • motorguy
    • By motorguy 8th Feb 18, 10:02 AM
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    motorguy
    Personally I'd rather pay the finance company, less trouble having to go to a bank to draw cash out and then the hassle and risk of carrying it around. If the car is a good deal the "hassle" would be well worth it.

    A two minute phone call is nothing to the hassle of finding a car, driving to see it, test drive etc etc etc.
    Originally posted by scaredofdebt
    +1

    I wholly agree.
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