TBMeech

You cannot sell a car with HP Owing on it, you MUST settle the finance before selling the car, that is because if you do not pay the remaining finance the hp company can repossess the car off the new owner as they do not have title to it.

The easiest way is to get a Settlement Figure (Written) from the hp company, if someone wants to buy your car get them to pay the settlement - go into the local branch of your finance co together (then everyone is happy as the finance element is gone) and then the buyer gives you the balance and you give him the car....jobs a good un.

Edited to say just as Tommy2000 did in his post above

[Edited by TBMeech - 9/3/2002 11:47:23 AM]

dela

Hi - I'm just after a bit of advice.

The time has come to move my car on, and to avoid being ripped off I want to sell it privately. (I always say I'll never do it again because of the volume of time wasters....)

BUT, I have 4 months of my HP payments left to make. Can I legally arrange to sell the car, then either pay the outstanding balance off myself or use the funds from the new owner to?

I imagine its really a case of being straight up with prospective purchasers.

cheers,
dela

Reidy2

yes you can sell it, however in order for the ownership to transfer to your buyer you must settle the outstanding debt to the finance company in full.

If the new owner does a check on the car it will show up as finance o/s if you do not clear it so best being upfront about it.

Call your finance company and get a settlement figure.

Andy McCord

As far as im aware you cannot sell a car with finance still outstanding because you dont legally own it, you will have to pay it off then they will provide you with some sort of document that transfers ownership to you from the finance company

Tommy 2000

I bought a car privately with finance owing, guy warned me in advance (HPI check confirmed his story) and when I went to do the deal we both went to local dealer to settle the debt and he was left with the balance. That way I was happy car was clean...

So yeah, be honest! Talk to your creditor and find out best way to resolve in this situation.

T

slippyr4

When I got rid of my car, i was originally thinking of selling it privately. IM finance wanted a bank draught to them from the buyer for the settlement figure.

TolTec

It gets even more interesting when the car you are about to buy has HP on it that the owner does not even know about!

Turned out his car had been cloned and someone had recently bought the copy from a dealer on HP. The "owner" of the clone even had a V5 in his name that the DVLA had no record of, added to that, though the original was still registered in the right name the address had been changed.

The car had never been stolen/recovered and the seller was on the level as he went straight to the Police to report it.

Somebody may be running around in a copy of your car and the first you might time will know is when your vehicle tax renewal does not arrive.

Scary.

dela

cheers chaps - doesn't seem that scary after all

sillysi

IM told me that I could sell the car as long as the settlement was paid within a month of selling. They suggested best way was to get a bankers draft off the buyer payable to IM then they would release ownership to the new buyer.

Philip Attaway

Ditto sillysi

I still think it could put buyers off though knowing there is money owed.
I got a Cahoot loan to pay it off. There is no early redemtion fee so as soon as the car sells you can pay the car off fully yourself with no penalty.
You will probably find the loan has a lower APR than your finance with the rates as they are

Phil