Buying the OH's car rather than trade in

[illmonkey]

My missus has ordered a new car, her current car is at the point where it can be handed back to VWFS with no penalty and it'll just clear the loan. She's said she doesn't want the hassle of clearing the finance and selling it privately, she is getting a lease, so can't trade it in either.

So, we've agreed I can clear the finance, sell it on her behalf and pocket and profits. It got me thinking, but I can't decide if it's worth doing. Her new car arrives in just shy of 2 months, so I can't sell it until then, which means the settlement figure will be roughly £350 lower than it was last month. Lets get some figures...


Settlement: £6750 (It's currently £7087.80, but it'll be in 2 months I do this)
WBAC: £6595
AT: £8382 (valued at £7620, I assume to take offers?)
Private sellers similar cars: 2x £8500 one with 5k less miles, 1 with 10k less.

It's a 'Volkswagen Polo Hatchback (2013 - 2017) MK5 Facelift 1.2 TSI BlueMotion Tech SE (s/s) 5dr' - Grey - 39,000 - FVWSH, 10 months MOT, serviced 3k ago. Good condition.

I have no problem keeping it clean, running some ad's and doing some viewings. Figures state I should make a profit of £800-£1000, but obviously that's with the wind behind me etc.

Sometimes these things just aren't worth the hassle, so thoughts...

[TVR1]

So in summary, you have 2 months to sell the car and potentially make a bit on top or hand back if it doesn’t sell?

Pretty much an ideal situation as you’re preparing in advance. There’s nothing stopping you selling before the end of the agreement (other than not having another car before the new one arrives) just make sure you settle the loan at the time of sale-you don’t have to clear the finance beforehand.

[jas xjr]

When I leased vans many years ago,I can remember the dealer asking me if I had a px. That was with a main dealer rather than a broker

[illmonkey]

TVR1 said:

So in summary, you have 2 months to sell the car and potentially make a bit on top or hand back if it doesn’t sell?

Pretty much an ideal situation as you’re preparing in advance. There’s nothing stopping you selling before the end of the agreement (other than not having another car before the new one arrives) just make sure you settle the loan at the time of sale.

Whilst correct, shees said that I'd need to clear the finance, so she's not paying for 2 cars. So I will end up with the car, no 'hand back option' if I do that.

I can't guarantee someone would buy it the same weekend she gets her new car, the only other option I think is I pay her monthly cost for 1 month (in turn lowering the settlement), give my self 1 month to shift it, but again I'd be at a loss if it didn't go, or I'd lower the price and not make anything.

[illmonkey]

jas xjr said:

When I leased vans many years ago,I can remember the dealer asking me if I had a px. That was with a main dealer rather than a broker

It's an online lease, they wern't interested in trade in's. Also, the garages we went to looking at cars offered laughable trade ins (starting with a 5)

[TheLuke]

I always find selling newer cars privately a bit of a hassle. Its all very finance driven nowadays. The interest that you do get, is traders.

Private folk dont buy cash anymore

You can give it a go, but if someone does want to buy it, they will want a huge chip on a dealer.

[SpeckledJim]

Don't forget to declare the profit to the taxman, and offer consumer rights to your buyer...



No, not really...

Edited by SpeckledJim on Tuesday 5th March 11:58

[Integroo]

I've twice tried to sell new-ish cars and even at a big discount to the trade retail price, got very little interest. Not sure it's worth the hassle. WBAC prices can move quite quickly also.

[Mo28]

Also check Evans Halshaw as well, they tend to give better prices than WBAC.

[ashleyman]

Also check out Tootle. Sold a car on there and made £1400 over the dealer trade in.

[SWoll]

https://www.arnoldclark.com/sell

Best price I've been offered for my wife's 2015 Countryman Cooper SD.

[illmonkey]

AC is £7259, so potential money to be made.

Annoyingly, we have to give the garage a months notice to hand the car back. So I have to bite the bullet and buy it in good notice, but then can't sell it for a month!

If only she would drive one of my cars for the interim period...

[ZX10R NIN]

illmonkey said:

AC is £7259, so potential money to be made.

Annoyingly, we have to give the garage a months notice to hand the car back. So I have to bite the bullet and buy it in good notice, but then can't sell it for a month!

If only she would drive one of my cars for the interim period...

Expect to make £500 (after adverts etc) if you get anything above that then view it as a bonus, small cars sell pretty well so I say go for it.

[illmonkey]

With a bit more looking, her finance will be £6650, so that's an other £100. Even if it went straight to AC (with a knock down) it's £400ish profit for little work.

So I think I'll do it. I have everything I need to clean it well, so no cost, and will list on PH for free, maybe AT if it doesn't budge. I will have to insure it for a little while, for test drives etc too, but that's going to be an admin charge I imagine. Tax is £20 a year (it'll stay in her name, so stay valid).

[GreatGranny]

illmonkey said:

I will have to insure it for a little while, for test drives etc too, but that's going to be an admin charge I imagine. Tax is £20 a year (it'll stay in her name, so stay valid).

Look into this as the 'Admin' charge plus keeping the insurance may end up being £100+.

[illmonkey]

GreatGranny said:

illmonkey said:

I will have to insure it for a little while, for test drives etc too, but that's going to be an admin charge I imagine. Tax is £20 a year (it'll stay in her name, so stay valid).

Look into this as the 'Admin' charge plus keeping the insurance may end up being £100+.

Previously I've just added cars for admin fees, but I just asked and adding it for a month is £87. I asked about a new policy and it'd be subject to a £30 cancellation and prorated amount of a years policy, for what I've used. So probably about the same (assuming the policy is £300/year).

She wants a simple swap, so wants to just change her insurance, rather than muck about with additional cars etc hence the reason for me to insure. I could pay the finance off beginning April, so it's all clear come the swap over date (17th April), list the car 1st April with collection 17th onwards. I may get lucky and not need to insure. I may have to do a month.

[illmonkey]

Argh. Car needs a new windscreen and a service in 1,000 miles, which is be give or take hand back time. So £75 excess for windscreen and £179 service. But both need doing before it's handed back. I imagine they'll get done, I'll sell it, we'll split those 2 costs and I'll take everything there after.

I've decided to go ahead with the sale, I've cleaned it and tidied the inside, photos taken of car, service books etc, so just need to write the ad and get it live. I won't put it needs collection after 17th April, will just mention it to any callers, so I don't limit the calls in.

Even with those 2 costs and handing it over to AC, I stand to make £250.

[Mr Pointy]

For monthly insurance have a look at Aviva Plus. As far as I can see you pay monthly & can cancel without charge.

[illmonkey]

Mr Pointy said:

For monthly insurance have a look at Aviva Plus. As far as I can see you pay monthly & can cancel without charge.

thanks, I have an Aviva pension, so get discount too. The circumstances are also a little off for regular insurance, it won't be registered in my name and won't have a policy already. I'll do some digging. I hope it goes the same day the new car arrives!

[Sheepshanks]

I don't know anything about your circumstances, but this is sounding like a lot of hassle for a maximum potential of a few hundred quid. Getting involved in other people's cars rarely ends well.

To be honest I'd leave her to it. Be prepared for people to tell you for months afterwards they'd have given you £8K for it.