Selling my BMW Clubsport, but still have finance
Discussion
Hi,
I own a BMW clubsport 330ci 2004.
does anybody know the best way to sell a car with finance!?
i have owned this brilliant car for 2 years but still have 3 yrs left on the finance contract. When i brought the car i was young and stupid, and agreed to a 60month deal, bloody salesman! lol. now 2 yrs on i need a change.
Can anybody help?
Thanks
I own a BMW clubsport 330ci 2004.
does anybody know the best way to sell a car with finance!?
i have owned this brilliant car for 2 years but still have 3 yrs left on the finance contract. When i brought the car i was young and stupid, and agreed to a 60month deal, bloody salesman! lol. now 2 yrs on i need a change.
Can anybody help?
Thanks
I believe you will need a letter from the finance company with a payout figure on it.
The buyer then hands the money directly to the finance company who then issue another letter stating that the fiance / encumbrance is clear.
The other option is to get an unsecured personal loan and use it to pay out the finance and then pay off the first loan with the sale.
The buyer then hands the money directly to the finance company who then issue another letter stating that the fiance / encumbrance is clear.
The other option is to get an unsecured personal loan and use it to pay out the finance and then pay off the first loan with the sale.
You can also sell to the likes of www.webuyanycar.com or similar, who will pay the loan off for you when you sell to them.
Unfortunately, they offer part-ex prices...
Unfortunately, they offer part-ex prices...
I fear the car is going to be worth a lot less than the outstanding balance.
Some buyers can be OK about settling outstanding finance, others prefer it is done by you before they buy.
You know about voluntary termination when 50% has been repaid ? It might be better for you to hold on for another 6-12 months and just hand it back.
Some buyers can be OK about settling outstanding finance, others prefer it is done by you before they buy.
You know about voluntary termination when 50% has been repaid ? It might be better for you to hold on for another 6-12 months and just hand it back.
yer in most cases with 60 month finance unless you put down a big deposit you will always owe more than the car is worth until the final year (negative equity).
But as stated in the above threads with any car finanace there is a get out clause after half the term/half the amount paid. As long as the car is in good condtion you can return the car with no penalty (the finance documents should have this on there)
But as stated in the above threads with any car finanace there is a get out clause after half the term/half the amount paid. As long as the car is in good condtion you can return the car with no penalty (the finance documents should have this on there)
Look at the finance agreement. If it was for less than £25k you can hand the car back free and clear when you've paid half of the TOTAL AMOUNT PAYABLE UNDER THE AGREEMENT, including deposit and payments made so far.
So, if the TOTAL AMOUNT PAYBALE UNDER THE AGREEMENT IS £30,000, YOU CAN HAND THE CAR BACK WHEN YOU'VE PAID THEM £15,000.
Soovy said:
Look at the finance agreement. If it was for less than £25k you can hand the car back free and clear when you've paid half of the TOTAL AMOUNT PAYABLE UNDER THE AGREEMENT, including deposit and payments made so far.
So, if the TOTAL AMOUNT PAYBALE UNDER THE AGREEMENT IS £30,000, YOU CAN HAND THE CAR BACK WHEN YOU'VE PAID THEM £15,000.
I concur, but it is not advisable any more as you get marks against your credit history and 'can' make getting another car of a high value on a finance agreement difficult as you are now classed as a 'handback risk'So, if the TOTAL AMOUNT PAYBALE UNDER THE AGREEMENT IS £30,000, YOU CAN HAND THE CAR BACK WHEN YOU'VE PAID THEM £15,000.
It depends how badly you need out the car i suppose, but two years in it's highly unlikely you'll have any equity in the car unless you had a large deposit when you bought the car.
OP, the salesman didn't hold a gun to your head when you bought the car, so it's hardly his fault your on a 5yr HP agreement
LHDisbest said:
Soovy said:
Look at the finance agreement. If it was for less than £25k you can hand the car back free and clear when you've paid half of the TOTAL AMOUNT PAYABLE UNDER THE AGREEMENT, including deposit and payments made so far.
So, if the TOTAL AMOUNT PAYBALE UNDER THE AGREEMENT IS £30,000, YOU CAN HAND THE CAR BACK WHEN YOU'VE PAID THEM £15,000.
I concur, but it is not advisable any more as you get marks against your credit history and 'can' make getting another car of a high value on a finance agreement difficult as you are now classed as a 'handback risk'So, if the TOTAL AMOUNT PAYBALE UNDER THE AGREEMENT IS £30,000, YOU CAN HAND THE CAR BACK WHEN YOU'VE PAID THEM £15,000.
It depends how badly you need out the car i suppose, but two years in it's highly unlikely you'll have any equity in the car unless you had a large deposit when you bought the car.
OP, the salesman didn't hold a gun to your head when you bought the car, so it's hardly his fault your on a 5yr HP agreement
Sorry but that's just NOT TRUE.
Any dealer who tells the customer that should be hauled in front of the FSA and fined. This includes you, LHD.
Exiting a finance agreement early is a contractual right where it's set out in the agreement and there is no consequence for your credit history with Equifax or Experian.
Dealers seem to be telling people they can't do this as it will stop them getting finance in future. This is a lie pure and simple. If a dealer tells you this - REPORT THEM TO THE FSA. "Handback risk" indeed.
There are a lot of dealers on here at the moment bleating about the way they are portrayed. This sort of porky pie is exactly the kind of shiny suited practice which causes this perception.
Edited by Soovy on Thursday 20th November 12:02
Soovy said:
LHDisbest said:
Soovy said:
Look at the finance agreement. If it was for less than £25k you can hand the car back free and clear when you've paid half of the TOTAL AMOUNT PAYABLE UNDER THE AGREEMENT, including deposit and payments made so far.
So, if the TOTAL AMOUNT PAYBALE UNDER THE AGREEMENT IS £30,000, YOU CAN HAND THE CAR BACK WHEN YOU'VE PAID THEM £15,000.
I concur, but it is not advisable any more as you get marks against your credit history and 'can' make getting another car of a high value on a finance agreement difficult as you are now classed as a 'handback risk'So, if the TOTAL AMOUNT PAYBALE UNDER THE AGREEMENT IS £30,000, YOU CAN HAND THE CAR BACK WHEN YOU'VE PAID THEM £15,000.
It depends how badly you need out the car i suppose, but two years in it's highly unlikely you'll have any equity in the car unless you had a large deposit when you bought the car.
OP, the salesman didn't hold a gun to your head when you bought the car, so it's hardly his fault your on a 5yr HP agreement
Exiting a finance agreement early is a contractual right, AND THERE IS ABSOLUTELY NOT A MARK AGAINST YOUR CREDIT HISTORY FOR DOING SO.
Dealers seem to be telling people they can't do this as it will stop them getting finance in future. This is a lie. If a dealer tells you this - REPORT THEM TO THE FSA.
Edited by Soovy on Thursday 20th November 11:51
Soovy, im not wanting an argument, but how come you propose a customer for finance on a vehicle and when the customer is declined (who you think is a stonewall finance case) you ask the finance company why they were declined and they tell you it's due to risk of handback. I only report as i find. The finance company in question would accept the customer but only with a significantly increased deposit.
What you want to be watchful of is dealers who get you 5yr finance on 'personal loan' terms, then you really are stitched up like a kipper.
LHDisbest said:
Soovy said:
LHDisbest said:
Soovy said:
Look at the finance agreement. If it was for less than £25k you can hand the car back free and clear when you've paid half of the TOTAL AMOUNT PAYABLE UNDER THE AGREEMENT, including deposit and payments made so far.
So, if the TOTAL AMOUNT PAYBALE UNDER THE AGREEMENT IS £30,000, YOU CAN HAND THE CAR BACK WHEN YOU'VE PAID THEM £15,000.
I concur, but it is not advisable any more as you get marks against your credit history and 'can' make getting another car of a high value on a finance agreement difficult as you are now classed as a 'handback risk'So, if the TOTAL AMOUNT PAYBALE UNDER THE AGREEMENT IS £30,000, YOU CAN HAND THE CAR BACK WHEN YOU'VE PAID THEM £15,000.
It depends how badly you need out the car i suppose, but two years in it's highly unlikely you'll have any equity in the car unless you had a large deposit when you bought the car.
OP, the salesman didn't hold a gun to your head when you bought the car, so it's hardly his fault your on a 5yr HP agreement
Exiting a finance agreement early is a contractual right, AND THERE IS ABSOLUTELY NOT A MARK AGAINST YOUR CREDIT HISTORY FOR DOING SO.
Dealers seem to be telling people they can't do this as it will stop them getting finance in future. This is a lie. If a dealer tells you this - REPORT THEM TO THE FSA.
Edited by Soovy on Thursday 20th November 11:51
Soovy, im not wanting an argument, but how come you propose a customer for finance on a vehicle and when the customer is declined (who you think is a stonewall finance case) you ask the finance company why they were declined and they tell you it's due to risk of handback. I only report as i find. The finance company in question would accept the customer but only with a significantly increased deposit.
What you want to be watchful of is dealers who get you 5yr finance on 'personal loan' terms, then you really are stitched up like a kipper.
Think about it.
A higher deposit means lower payments, but had no effect on the right to hand back when 50% has been paid!!
Which finance companuy is it that told you this? They're bullsh 1tting you.
Edited by Soovy on Thursday 20th November 12:09
Soovy said:
LHDisbest said:
Soovy said:
LHDisbest said:
Soovy said:
Look at the finance agreement. If it was for less than £25k you can hand the car back free and clear when you've paid half of the TOTAL AMOUNT PAYABLE UNDER THE AGREEMENT, including deposit and payments made so far.
So, if the TOTAL AMOUNT PAYBALE UNDER THE AGREEMENT IS £30,000, YOU CAN HAND THE CAR BACK WHEN YOU'VE PAID THEM £15,000.
I concur, but it is not advisable any more as you get marks against your credit history and 'can' make getting another car of a high value on a finance agreement difficult as you are now classed as a 'handback risk'So, if the TOTAL AMOUNT PAYBALE UNDER THE AGREEMENT IS £30,000, YOU CAN HAND THE CAR BACK WHEN YOU'VE PAID THEM £15,000.
It depends how badly you need out the car i suppose, but two years in it's highly unlikely you'll have any equity in the car unless you had a large deposit when you bought the car.
OP, the salesman didn't hold a gun to your head when you bought the car, so it's hardly his fault your on a 5yr HP agreement
Exiting a finance agreement early is a contractual right, AND THERE IS ABSOLUTELY NOT A MARK AGAINST YOUR CREDIT HISTORY FOR DOING SO.
Dealers seem to be telling people they can't do this as it will stop them getting finance in future. This is a lie. If a dealer tells you this - REPORT THEM TO THE FSA.
Edited by Soovy on Thursday 20th November 11:51
Soovy, im not wanting an argument, but how come you propose a customer for finance on a vehicle and when the customer is declined (who you think is a stonewall finance case) you ask the finance company why they were declined and they tell you it's due to risk of handback. I only report as i find. The finance company in question would accept the customer but only with a significantly increased deposit.
What you want to be watchful of is dealers who get you 5yr finance on 'personal loan' terms, then you really are stitched up like a kipper.
Think about it.
A higher deposit means lower payments, but had no effect on the right to hand back when 50% has been paid!!
Which finance companuy is it that told you this? They're bullsh 1tting you.
Edited by Soovy on Thursday 20th November 12:09
I (used to) always leave the customer alone to read the finance contract, go and make the tea and if they have any questions to ask before they sign it. As you say the FSA are very strict on controls regarding advising on financial contracts/insurance, etc, the dealer is the arranger/advisor of the agreement and as such is governed by FSA regulation.
I'm not arguing with you, this is information that was given to me by a finance company not 6 months ago. I, like you was under the impression that it made no difference if you handed back at half term. I'm going from one case that i personally had. Like i say, i can only speak as i find.
Soovey can i ask what you do for a living? Lawyer by any chance?
EFA - Spelling
Edited by LHDisbest on Thursday 20th November 12:25
LHDisbest said:
Soovy said:
LHDisbest said:
Soovy said:
LHDisbest said:
Soovy said:
Look at the finance agreement. If it was for less than £25k you can hand the car back free and clear when you've paid half of the TOTAL AMOUNT PAYABLE UNDER THE AGREEMENT, including deposit and payments made so far.
So, if the TOTAL AMOUNT PAYBALE UNDER THE AGREEMENT IS £30,000, YOU CAN HAND THE CAR BACK WHEN YOU'VE PAID THEM £15,000.
I concur, but it is not advisable any more as you get marks against your credit history and 'can' make getting another car of a high value on a finance agreement difficult as you are now classed as a 'handback risk'So, if the TOTAL AMOUNT PAYBALE UNDER THE AGREEMENT IS £30,000, YOU CAN HAND THE CAR BACK WHEN YOU'VE PAID THEM £15,000.
It depends how badly you need out the car i suppose, but two years in it's highly unlikely you'll have any equity in the car unless you had a large deposit when you bought the car.
OP, the salesman didn't hold a gun to your head when you bought the car, so it's hardly his fault your on a 5yr HP agreement
Exiting a finance agreement early is a contractual right, AND THERE IS ABSOLUTELY NOT A MARK AGAINST YOUR CREDIT HISTORY FOR DOING SO.
Dealers seem to be telling people they can't do this as it will stop them getting finance in future. This is a lie. If a dealer tells you this - REPORT THEM TO THE FSA.
Edited by Soovy on Thursday 20th November 11:51
Soovy, im not wanting an argument, but how come you propose a customer for finance on a vehicle and when the customer is declined (who you think is a stonewall finance case) you ask the finance company why they were declined and they tell you it's due to risk of handback. I only report as i find. The finance company in question would accept the customer but only with a significantly increased deposit.
What you want to be watchful of is dealers who get you 5yr finance on 'personal loan' terms, then you really are stitched up like a kipper.
Think about it.
A higher deposit means lower payments, but had no effect on the right to hand back when 50% has been paid!!
Which finance companuy is it that told you this? They're bullsh 1tting you.
Edited by Soovy on Thursday 20th November 12:09
I (used to) always leave the customer alone to read the finance contract, go and make the tea and if they have any questions to ask before they sign it. As you say the FSA are very strict on controls regarding advising on financial contracts/insurance, etc, the dealer is the arranger/advisor of the agreement and as such is governed by FSA regulation.
I'm not arguing with you, this is information that was given to me by a finance company not 6 months ago. I, like you was under the impression that it made no difference if you handed back at half term. I'm going from one case that i personally had. Like i say, i can only speak as i find.
Soovey acn i ask what you do for a living? Lawyer by any chance?
Not spoiling for a fight, but it makes me mad when customers get lied to about these things. The FSA will come down like a ton of sh t on firms for this sort of lie - anyone heard of TCF!?!!
Soovy said:
Not spoiling for a fight, but it makes me mad when customers get lied to about these things. The FSA will come down like a ton of sh t on firms for this sort of lie - anyone heard of TCF!?!!
I genuinely wonder how much noise has been made about that outside of the Square Mile?Treating Customers Fairly. No actual written rules on TCF- Perhaps there should be. The TCF mantra, financial promotions should be 'fair, clear and not misleading'
Soovy, you should know lots of banks should be reported to the FSA viz-a-viz TCF, stitching up customers with loans and credit that are not worded or explained properly.
There is a lot of 'computer says no' reagrding finance applications, at the time it annoyed me as i couldn't sell the guy a car.
I concede the point your making, but the OP made the comment 'bloody salesman' as if it was the salesman's fault he was on a 5yr HP deal. There lies the reason there is so much paperwork now regarding 'duty of care' in car sales.
Nearly as much as getting some oik off for shoplifting!
Soovy, you should know lots of banks should be reported to the FSA viz-a-viz TCF, stitching up customers with loans and credit that are not worded or explained properly.
There is a lot of 'computer says no' reagrding finance applications, at the time it annoyed me as i couldn't sell the guy a car.
I concede the point your making, but the OP made the comment 'bloody salesman' as if it was the salesman's fault he was on a 5yr HP deal. There lies the reason there is so much paperwork now regarding 'duty of care' in car sales.
Nearly as much as getting some oik off for shoplifting!
I had a car on 60 month finance with £200 deposit and i handed it back last year 3 months before half the contract was up. all i had to pay was 3 months payments and that was that (cheaper than the neg eq). all i did was take it to the auction for inspection and when i paid the 3 months payments that was the end. I have handed back 2 cars at the half way point and have never had a problem getting finance again.
i have heard stories of dealers telling customers about the black marks on their credit report but i also checked with experian first who advised all it would state was settled early on my credit report.
The finance company in some cases end up better off as the car is sold at auction enabling them to get the money quicker.
i have heard stories of dealers telling customers about the black marks on their credit report but i also checked with experian first who advised all it would state was settled early on my credit report.
The finance company in some cases end up better off as the car is sold at auction enabling them to get the money quicker.
OllieWinchester said:
LHDisbest said:
I concede the point your making, but the OP made the comment 'bloody salesman' as if it was the salesman's fault he was on a 5yr HP deal.
Am I alone in thinking he is on a 60mth deal because he couldn't afford the payments on a 48mth one?Gassing Station | General Gassing [Archive] | Top of Page | What's New | My Stuff