selling a car with finance on it.

[ian7675]

Last summer myself and the wife urgently needed a second car but we couldn't quite afford it outright so we took some finance out on it. I have no financial problems or anything but the car just isn't getting used any more. I've literally driven a few hundred miles since Christmas so its becoming an unnecessary expense. So I was thinking about selling it but the problem is it had the finance secured on it. Do people generally have a problem with this and are people generally going to avoid it despite my honesty? Obviously I would just pay the finance off straight away but I'd like to avoid paying out for another year of motoring if i can.
Failing that I'd just have to pay it off over the next year and sell it then. What do you think?

[S70 B5254T]

Thought about doing just that with the wife's Fiesta, and a lot of private buyers might not check or realise, but at the end of the day, the car doesn't belong to you, so it's not yours to sell...

Also, if I was a sensible private buyer, and you had been honest about this, I wouldn't touch your car with a barge pole, knowing that there was an outside chance that the finance company might come and repossess the car that I'd just paid £5K for...

Lots of adverts these days about cars with hidden pasts and it takes 1 minute for a buyer to send and receive a text with the information on.
As someone who has thought about it long and hard myself, I'd say it isn't worth the risk.

[Speedy]

I would suspect you not the only one, even on here. I'd think that loads of people have cars that as soon as that last payment is finished it's off to a new home, people circumstances change even from when they first bought the car. I got my S60 when i was doing long trips, 4 years down the road I've now got a 6 mile commute to work, do I really need a 2.4 to do that?.

You could voluntarily surrender the car but you'd lose all the money you put down to purchase, so just try and sell it in the free ads to keep further costs down or it will cost you more and just hope you find that person.

Would you buy a car with finance knowing you'd clear that finance.

Steve.

[ian7675]

That's what I thought, thinking about it from a buyers perspective I doubt I would take the risk either. I'll probably try and up the payments and clear it quicker then I can think about selling it. It's a shame as it's a nice car but these days my head has to rule my heart.

[Mr-V70]

It is worth discussing this with the finance company. When i sold a car with outstanding finance they granted their permission on the basis that the loan was settled on sale of the car.

This was a few years ago now so things may have changed. It may also say something about it in the T&C's of the finance agreement.

Sam

[ian7675]

Thanks, I'll look into that.

[DaveNP]

It's got to be worth a call to the finance company, they must have a way to deal with situations like this and if their solution doesn't suit you then you still have the option to just keep the car until the finance is paid off.

[SonyVaio]

I know of people who have done this, as long as the buyer is happy and you have agreed with finance company then all should be well.

I take it the money you would get from a sale is over and above the outstanding finance? The way it worked with the people I know was; the buyer bought the car and dealt with the seller but the payment was made to the finance company in whole and NOT the seller, then once the finance company took off the finance sum and associated costs then the remainder balance was then paid to the seller.

I think most finance companies are happy as long as they are going to get their money in full and your honest with them.

All the best,

[ian7675]

Yeah there would be money in the car for me after its paid off, Thats one of the reasons we went for such a short finance period. If the finance company would do as you suggested i.e take the whole amount and give me back the remainder, i would be mire than happy with that. I'll call them when I can.

[Anadinolin]

Its fruad to knowingly sell a car with OUTSTANDING finance unless agreed by the finance company, as others have said, the finance co are the best ones to talk to regards this