Selling a car with outstanding HP?

[200bhp]

How does one sell a car when there is still finance outstanding on the car? We're off to Australia next yesr and the Audi will still have a small amount of finance outstanding on it. As it happens this amount will be slightly less than I expect the car should sell for at that time.

So what's the normal way to sell a car that's on finance? Assuming a prospective buyer does an HPI check it'll show up, so what do people do?

I'm considering phoning the HP company from Heathrow and telling them its in the car park with the keys in it!

[redgriff500]

I've bought a couple with HP on them, what I did was go with the seller to the bank and I paid off the HP directly to them in front of the seller.

Easy as long as you sell it within bank hours.

[SlimRick]

I may have done something similar when I moved back from the US in a bit of a rush. Parked the car in the car park of the finance company, keys in an envelope with a covering letter and hop on a flight back home.

[northandy]

How long was your agreement over? It may be that by then you are past the 50% point and may be able to hand the car back anyway. (the 50% isnt half the payments, its if you have paid over half of the full agreement value including interest)

Check your agreement!

[200bhp]

northandy said:

How long was your agreement over? It may be that by then you are past the 50% point and may be able to hand the car back anyway. (the 50% isnt half the payments, its if you have paid over half of the full agreement value including interest)

Check your agreement!

Interesting, I've not heard that one before!

[PumpkinSteve]

200bhp said:

Interesting, I've not heard that one before!

Voluntary termination, it'll be in the small print.

[northandy]

200bhp said:

Interesting, I've not heard that one before!

Its a clause in every hp contract where the value is under 25k

[Sir Bagalot]

200bhp said:

northandy said:

How long was your agreement over? It may be that by then you are past the 50% point and may be able to hand the car back anyway. (the 50% isnt half the payments, its if you have paid over half of the full agreement value including interest)

Check your agreement!

Interesting, I've not heard that one before!

You signed a HP Agreement for a car without reading it?

[someday]

Sir Bagalot said:

You signed a HP Agreement for a car without reading it?

I sold cars for 6 years, only 2 people in all that time ever read through the small print. Both of them declined to sign the agreement and went and got a bank loan instead.

[redgriff500]

someday said:

Sir Bagalot said:

You signed a HP Agreement for a car without reading it?

I sold cars for 6 years, only 2 people in all that time ever read through the small print. Both of them declined to sign the agreement and went and got a bank loan instead.

Exactly... my Dad bought a TV from Currys and they offered him credit, he asked what the rate was and after finding out it was something like 20% he asked if anyone ever accepted it.

The salesman said he was the first person to ever ask what the rate was.

[craigb84]

PumpkinSteve said:

Voluntary termination, it'll be in the small print.

Used it like a dream on my old car. You have to have paid At least 50% of the total amount of credit payable. They don't like it but it's there.

I've previously sold another car with outstanding HP to a private buyer. I had the finance company write me a statement / settlement figure then the buyer raised a bankers draft in that amount direct for the finance company and paid the balance to me.

We went to the post office together and posted the bankers draft, I took the balance of the cash and I never heard from either again other than the bank to confirm the loan was paid. he took the car the very same day.

All very easy. Just be honest and the buyer should have no reason to suspect anything dodgy.

Obviously it only worked because I was in positive equity.

[Jasandjules]

someday said:

Sir Bagalot said:

You signed a HP Agreement for a car without reading it?

I sold cars for 6 years, only 2 people in all that time ever read through the small print. Both of them declined to sign the agreement and went and got a bank loan instead.

Oh it cuts both ways. I've amended the small print in contracts before now and sent them in. No-one ever complained.

But very, very few people will read the small print in anything they sign, which in part is due to the ecessive nature of the small print which is of itself designed to preclude people from wanting to.

[200bhp]

northandy said:

How long was your agreement over? It may be that by then you are past the 50% point and may be able to hand the car back anyway. (the 50% isnt half the payments, its if you have paid over half of the full agreement value including interest)

Check your agreement!

Wel, I've read all the small print and it's there!

So all I need to do is hand back the car when I leave for Oz - Excellent.

Do you think they'll be "happy" to collect it from the airport???

[northandy]

200bhp said:

Wel, I've read all the small print and it's there!

So all I need to do is hand back the car when I leave for Oz - Excellent.

Do you think they'll be "happy" to collect it from the airport???

I doubt it, probably from your home, in some cases i have heard people having to drop them at auctions.

Just be aware you may get clobbered for damage over and above fair wear and tear.

[craigb84]

northandy said:

I doubt it, probably from your home, in some cases i have heard people having to drop them at auctions.

Just be aware you may get clobbered for damage over and above fair wear and tear.

I had to do this with mine. It's not just as simple as leaving it for them to collect. There still has to be a closing document. It's much safer that way too. This finance lot can get very arsey in these situations so I'd do it all by the book.

[snorkel sucker]

There is a useful document on fair wear and tear which details what is / is not acceptable on handover.

Worth a read to get things sorted if needed - the finance co will likely hammer you if they do the work themselves

bvrla.co.uk