Selling to a dealer

[Davel]

Just after a few thoughts please.

Have agreed to sell a company car to a dealer from down sarf! The car has finance outstanding on it.

Now the dealer wishes to collect the car, give us a cheque for the equity and then settle the finance when they get back to the office.

I've said that I want the finance to be settled before they drive off in it because, if anything went wrong, the finance company would still be chasing us for the cash. I'd take a risk on the equity eing settled by cheque possibly but not the finance.

Am I right or just too pedantic?

[HBFS]

Correct IMO, it's not pedantic. It's cautious (but not overly so) forward thinking...

[littleredrooster]

1. If it has outstanding finance, is it yours to sell? Does the finance agreement not preclude a sale?

2. Have I overlooked the obvious - settle the finance now, before the sale takes place?

[Davel]

I could settle the finance now - good point.

It's a Mini and going to a Mini main dealer.

If I do settle the finance now, then I'd still need cleared funds before the car went but to my company, so the same risk is there unles the funds clear first.