car finance question
19 October 2007, 02:19 PM
#1
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car finance question
Hopefully somebody would be able to point me towards the right direction.
I started a new job about 3 months ago and a company car comes with it, now I hardly drive my scooby and its just sitting there, so am thinking of selling it as I am paying for something that i hardly drive (for e.g. insurance is in excess of £1500). I have about 18 months finance outstanding.
Would it be possible to sell the car and settle the outstanding finance with the proceed from the sale? or can I settle it simultaneously?
I can't really afford to settle the finance and THEN sell the car.
Any advice would be appreciated
Shof
I started a new job about 3 months ago and a company car comes with it, now I hardly drive my scooby and its just sitting there, so am thinking of selling it as I am paying for something that i hardly drive (for e.g. insurance is in excess of £1500). I have about 18 months finance outstanding.
Would it be possible to sell the car and settle the outstanding finance with the proceed from the sale? or can I settle it simultaneously?
I can't really afford to settle the finance and THEN sell the car.
Any advice would be appreciated
Shof
19 October 2007, 02:26 PM
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Just depends on who you sell it to. If it's a dealer, then yes, they will pay the finance off for you then give you a cheque for the remaining amount.
Selling privately? If your up front an honest about it you could be ok. A complete stranger might not go for it, but selling your car to a mate/work mate might.
What you could do is present the buyer with your finance agreement. They could then write a cheque to the finance company (thus ensuring that it is payed off) then give you a cheque for the rest.
Selling privately? If your up front an honest about it you could be ok. A complete stranger might not go for it, but selling your car to a mate/work mate might.
What you could do is present the buyer with your finance agreement. They could then write a cheque to the finance company (thus ensuring that it is payed off) then give you a cheque for the rest.
19 October 2007, 02:30 PM
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Just depends on who you sell it to. If it's a dealer, then yes, they will pay the finance off for you then give you a cheque for the remaining amount.
Selling privately? If your up front an honest about it you could be ok. A complete stranger might not go for it, but selling your car to a mate/work mate might.
What you could do is present the buyer with your finance agreement. They could then write a cheque to the finance company (thus ensuring that it is payed off) then give you a cheque for the rest.
Selling privately? If your up front an honest about it you could be ok. A complete stranger might not go for it, but selling your car to a mate/work mate might.
What you could do is present the buyer with your finance agreement. They could then write a cheque to the finance company (thus ensuring that it is payed off) then give you a cheque for the rest.
Thanks
19 October 2007, 03:18 PM
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the other thing is to check if you actually have 'finance' on the car in the first place.
Most car purchases are by unsecured personal loans rather than secured on the car like HP used to be even if arranged by a dealer. Worth a look at your paperwork to check the score
Most car purchases are by unsecured personal loans rather than secured on the car like HP used to be even if arranged by a dealer. Worth a look at your paperwork to check the score
19 October 2007, 03:37 PM
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19 October 2007, 05:10 PM
#6
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19 October 2007, 06:52 PM
#7
Write to or phone the finance company and tell them what you plan to do, they should send you a settlement figure out in writing so you know exactly how much you owe.
When you sell the car get the buyer to write a cheque out to the finance company for the owed amount and another to you for the balance.
If you sell to a trader they should settle the finance - they might drag it out a few months though so you end up still paying monthly payments until they do
When you sell the car get the buyer to write a cheque out to the finance company for the owed amount and another to you for the balance.
If you sell to a trader they should settle the finance - they might drag it out a few months though so you end up still paying monthly payments until they do
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20 October 2007, 07:51 PM
#8
What if the cheque bounces? The guy will be stuck without the car and still owing the finance company. Finance companies take AGES to declare no interest in the car anymore.
Tricky situation, i wouldnt want to accept a cheque and let the car drive away and i wouldnt want to be the buyer who pays by cheque then has to wait weeks for the cheque to clear.
Tricky situation, i wouldnt want to accept a cheque and let the car drive away and i wouldnt want to be the buyer who pays by cheque then has to wait weeks for the cheque to clear.
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