selling a car with finance on it.

[Ninja59]

1) Check with the finance company - as long as they are paid off they might not mind
2) There could be penalties so make sure you are aware of any.
3) Check how they want to be paid off.
4) Ultimately up to them.

[Daim]

Hmm, can't you not simply "pass the financing" on to someone else? That works here, if the financial check you do first proves that the future "buyer" is worthy.

That way the finance company doesn't lose out, you don't lose out and you get rid of the car without any extra costs...

[volvorocks]

Originally Posted by Daim

Hmm, can't you not simply "pass the financing" on to someone else?

^^^^ Generally not over here.

@ Ian

A quick point - have you checked your terms and conditions to see exactly what type of agreement you have? It may be the case you do not have HP, It may be the case the debt is not registered to the car. When you make your final payment is there an 'acceptance' fee.

You could also do an HP check to see what that comes up with as well.

Regards

[ian7675]

Well the cars details are all over it and there is an "arrangement fee"?

Edit: sorry, it's an acceptance fee as you said.

[S60 PNV]

The car I nearly bought before I got the one I now have, caused me to come across all this stuff.

The seller had not disclosed to me the car had outstanding finance. For that reason mostly, I walked away. I think he was just being a bit dim rather than trying to rip me off but there were other factors that put me off too.


You do not own the car if it has outstanding finance on it. The V5C can be in your name, yes. but you don't own, the Finance company do.

The Correct thing to do, I believe, is to call the Finance company, ask them for a Settlement figure (to pay off the Finance in full immediately).

You get a paper copy of that from the Finance company, show that to the potential buyer and tell them that if they agree to buy, they Pay X to the Finance company and Y to you. It's all very transparent and honest, then.

So if you owe £1500 on it and it's worth £4000, you only get £2500 and the new owner pays the £1500 to the Finance company directly.

The Finance Company then have no interest in the vehicle, you get a bit of money, new Owner gets a car entirely finance free from the moment you give them the keys.

[volvorocks]

Originally Posted by ian7675

Well the cars details are all over it and there is an "arrangement fee"?

Edit: sorry, it's an acceptance fee as you said.

Looks like it is some form of HP then and is secured . Some loans provided by finance houses are not actually secured as some peope think The issue is that the finance house likes the customer to think it is sometimes, when its not. Looks like you will have to either pay off prior to selling or negotiate the matter with the finance co, if you wish to sell earlier.

Regards

[ian7675]

I've just called the finance company and they said they are happy for me to sell the car. They said the new buyer must ring up and clear the remainder and I asked them could they take the full payment and reimburse myself with what's left, that too is fine. I'm going to think about it some more and if I do I will have to start getting it ready for selling. It needs a new leather drivers seat as there is a hole and a new droplink and its perfect. Thanks for the advice you've all given me about this, it's been a massive help.