Selling a car that is on finance

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Selling a car that is on finance

mehstg

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Hey guys

Quick question. How easy is it to sell a car that is on HP privately?

Obviously, if the buyer does a check, it will show that the car has HP against it. Just a thought, but personally, I would run a mile as a buyer in this situation, so wouln't blame someone else for doing the same!!

Basically, I am looking at buying a new car (Brera 2.2 JTS) and none of the dealers I have spoken to will give me anything remotely near what I can get for my car privately.

Any ideas?


P
 
I'd say best thing to do would be to speak to your finance company and see what they'd suggest. If you can find a buyer who is willing to do it, and then you can pay the settlement once the car is sold then easy peasy. Otherwise, unsecured loan from your bank, pay the settlement figure and then sell up.
 
Get a settlement figure for the outstanding finance, and pay for it when you sell the car privately.

If the buyer checks or asks, then just say that you will pay it off out of the funds from the sale.

When I buy cars privately, I always take along a letter that I ask the seller to sign that says that they sell the car with no debt owing to finance or other people. That way, if a finance company then asks me for cash, I have evidence that the seller agreed to pay for it. This is legal binding if done in front of witnesses, which I take along.

Buying a car with finance owing is no problem now as the agreement is with the original buyer. If a debt exists it exists between the original buyer and the finance firm. If you have paperwork stating that the seller has agreed to pay off all finance agreements you're safe as houses.
 
Get a settlement figure for the outstanding finance, and pay for it when you sell the car privately.

If the buyer checks or asks, then just say that you will pay it off out of the funds from the sale.

When I buy cars privately, I always take along a letter that I ask the seller to sign that says that they sell the car with no debt owing to finance or other people. That way, if a finance company then asks me for cash, I have evidence that the seller agreed to pay for it. This is legal binding if done in front of witnesses, which I take along.

Buying a car with finance owing is no problem now as the agreement is with the original buyer. If a debt exists it exists between the original buyer and the finance firm. If you have paperwork stating that the seller has agreed to pay off all finance agreements you're safe as houses.

i dont know if that has legal standing
any legal info to back that up?
 
I don't think that's right. The debt is secured on the car and thus, it's not legally yours to sell. The car only becomes yours once the final payment is made, or you settle the balance.

I asked this question recently and got a response to the effect that - you can sell a car on finance, but you have to run this by the finance company and get their approval. As someone else said, you can always get an unsecured loan and pay the HP off. Only issue with this is you can't rely on the loan being approved. I have a credit score of 974 (as of yesterday in fact) and was recently recently refused a small loan :rolleyes: This is even with a good payment history and no missed anything, a good wage, etc.

All I am saying is bend over and expect to wind up with a bucket as the banks will almost **** you over :)

Anyone else who knows about credit scores will know that 974 is pretty damned good.
 
i dont know if that has legal standing
any legal info to back that up?

Nope, no legal backup at all. I have bought a couple of cars privately with outstanding finance and I always ask about the finance. A letter, witnessed that states the seller has stated that they will or have paid of the vehicles finance is like them forming a contract with you. By signing it they have agreed to take responsibility. If the finance company does come after you, you have certified proof that the seller has agreed to pay the finance company, if they don't you have a perfectly reasonable claim on the seller. So, one way or another you're safe.

Other avenue is insist on paying the credit comapny directly. You then pay off the outstanding loan, and give the balance if any to the seller. This can often be done over the phone. Or break up the payment into 2 cheques, one for the finance, made payable to the finance company, and one to the seller. That was the seller can take both cheques, and pay off the balance. You'll know its done when the cheque clears
 
Nope, no legal backup at all. I have bought a couple of cars privately with outstanding finance and I always ask about the finance. A letter, witnessed that states the seller has stated that they will or have paid of the vehicles finance is like them forming a contract with you. By signing it they have agreed to take responsibility. If the finance company does come after you, you have certified proof that the seller has agreed to pay the finance company, if they don't you have a perfectly reasonable claim on the seller. So, one way or another you're safe.

Other avenue is insist on paying the credit comapny directly. You then pay off the outstanding loan, and give the balance if any to the seller. This can often be done over the phone. Or break up the payment into 2 cheques, one for the finance, made payable to the finance company, and one to the seller. That was the seller can take both cheques, and pay off the balance. You'll know its done when the cheque clears

Is this like the legally binding contract they took with the HP company? The one where the small print says they own your ass 'til every last penny is paid? - If they are happy to renege on a contract they signed with a huge money lender, do you honestly think they will do right by you?

Some advice here...
http://www.insolvencyhelpline.co.uk/legal_issues_explained/car_repossession.php
 
Clear the outstanding balance in accordance with the finance companies terms using your (or your parents) credit card. The car becomes your sole legal property without any arguement, all markers get lifted and nothing shows on HPI. Sell the car privately and you have a minmium of 4 interest free weeks to pay off the credit card using the proceeds of the sale.....easy peasy (y)

However .....this assumes the car is worth more than what you still owe on it including any early redemption charges and you or someone who trusts you has a card with a credit limit that will cover it (y)
 
If the finance company does come after you, you have certified proof that the seller has agreed to pay the finance company, if they don't you have a perfectly reasonable claim on the seller. So, one way or another you're safe.

And if the seller does a runner with the money and doesnt clear the balance off what happens? Is your signed letter going to be enough to prevent the finance company from coming round and snatching the car back, which on account of the fact it has not been fully paid for is still their property ? ........I doubt it very much :D

They will turn round and say........ "You made a contract with the seller, not us, the owners so take it up with him..........and in the meantime here is a repossesion order for the car in question"
 
This is legal binding if done in front of witnesses, which I take along.
No it isn't. The car belongs to the finance company until the loan is paid off. All your letter does is provide proof that you knew you were buying a car from somebody who didn't own it. Which makes it quick and easy for the finance firm to repossess it.
 
I would never consider buying a car off someone who doesn't own it.
Neither would I. In law you can't buy anything from somebody who doesn't own it. All you can do in that situation is to give money to somebody in return for something that can be taken away with no compensation.
 
Hey guys

Quick question. How easy is it to sell a car that is on HP privately?

Obviously, if the buyer does a check, it will show that the car has HP against it. Just a thought, but personally, I would run a mile as a buyer in this situation, so wouln't blame someone else for doing the same!!

Basically, I am looking at buying a new car (Brera 2.2 JTS) and none of the dealers I have spoken to will give me anything remotely near what I can get for my car privately.

Any ideas?


P

You have a fine taste in cars..... They're flawed (or so I read) but just look at em.....I'd sell a family member for a brand new one.
 
Do what I did when I sold my GP. Buyer comes to visit, likes the car & wants to buy. Ring up Finance company there and then and he can settle finance and pay you the remainder.

Saying that I was able to do that as the buyer had the funds available on his Credit/Debit card. May get complicated when cheques/cash/bankers drafts etc get involved.
 
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