Can I sell a car that's not mine?
Discussion
I have a car on finance which is nearing the end of the agreement.
I'd planned to buy it at the agreed final 'balloon payment' but I don't have the cash for the car now (house 'improvement' costs have spiralled but that's another story.
).
Anyway, rather than lose any perceived 'equity' in the car, I'd like to sell it for a little more than the final payment, use those funds to pay the finance company and make a couple of bob in the deal. I'm more keen than may otherwise be the case because it is 'over miles' so I'll have to pay them c. £800 to take it back.
I assume it will show up as finance outstanding should a prospective buyer do the usual checks.
Apart from giving my word, which is legally worth the paper it's written on, is there an accepted way to achieve this or do I just accept I cocked up the timing and stump up the £800 and return the car, potentially losing £1,500 which I think is the difference between the balloon payment and realistic resale value?
I'd planned to buy it at the agreed final 'balloon payment' but I don't have the cash for the car now (house 'improvement' costs have spiralled but that's another story.
).Anyway, rather than lose any perceived 'equity' in the car, I'd like to sell it for a little more than the final payment, use those funds to pay the finance company and make a couple of bob in the deal. I'm more keen than may otherwise be the case because it is 'over miles' so I'll have to pay them c. £800 to take it back.
I assume it will show up as finance outstanding should a prospective buyer do the usual checks.
Apart from giving my word, which is legally worth the paper it's written on, is there an accepted way to achieve this or do I just accept I cocked up the timing and stump up the £800 and return the car, potentially losing £1,500 which I think is the difference between the balloon payment and realistic resale value?
Yup I've done this, as above, the buyer pays the finance off and the balance to yourself.
Let the finance company know what's going on and be up front with the buyer, I'd imagine this is fairly common now anyway.
It might mean some running around to banks on the day to ensure the money clears to both yourself and the finance company before the buyer can drive away.
The only thing that almost caught me out is that I thought CHAPS was an instant guaranteed non reversible transfer. It turns out it's only guaranteed to arrive same day and then only if the transfer is made before 1pm (even though they charge quite a lot for this).
Let the finance company know what's going on and be up front with the buyer, I'd imagine this is fairly common now anyway.
It might mean some running around to banks on the day to ensure the money clears to both yourself and the finance company before the buyer can drive away.
The only thing that almost caught me out is that I thought CHAPS was an instant guaranteed non reversible transfer. It turns out it's only guaranteed to arrive same day and then only if the transfer is made before 1pm (even though they charge quite a lot for this).
All of the above is good advice
Do it in morning tho give plenty of time for chaps/bacs to go theu
Finance companies quite slow to report back that they no longer have an interest in vehicle
With a buy from a 100 miles away this can mean you are with them all day.
I got to know a lovely girl once having spent 7 hours with her buying an audi
Do it in morning tho give plenty of time for chaps/bacs to go theu
Finance companies quite slow to report back that they no longer have an interest in vehicle
With a buy from a 100 miles away this can mean you are with them all day.
I got to know a lovely girl once having spent 7 hours with her buying an audi
LordGrover said:
Thanks all, sounds achievable. 
Should I mention this in the advert or wait until we begin the inevitable negotiations?
I don't want to appear to be hiding anything, but concerned that depending on how it's worded may put off prospective buyer(s).
I would say that depends on the car - if its a car that appeals to the PH minded buyer then by all means put it in the advert, a PH buyer would understand the finance and what that means.Should I mention this in the advert or wait until we begin the inevitable negotiations?
I don't want to appear to be hiding anything, but concerned that depending on how it's worded may put off prospective buyer(s).
If it's a standard mass market car I'd be a bit more thoughtful as I'd be concerned that anyone looking and sees finance outstanding on an advert might just reject as a risk due to not fully understanding what's going on. As soon as they show interest in buying I'd explain in person the process making sure that they understood that there's nothing dodgy going on.
It ought to be a PH car, but it's my GT86 which divides opinion, to say the least.Gassing Station | General Gassing | Top of Page | What's New | My Stuff