Privately selling a car with finance PCP

[damienedwards]

Hi all,

Cannot appear to find an absolute answer to this, but can you sell a car with finance outstanding to a private buyer??

i can trade in but the offers so far are a joke!!

i would obviously let the buyer know and the plan would be to clear the finance once i get paid for the car and then get confirmation to the buyer.

is the legal and has anyone done it??

many thanks

Damien

[syl]

Legally it’s not yours to sell until the PCP/HP finance is paid (a bank loan would be different).

In practice, it can be done in one three way transaction - the buyer pays the finance company directly and you/him exchange the difference and the vehicle.

[ghost83]

Yes you can

I sold my gti earlier this year and paid the finance off the next day

[ChrisDT]

You could get the buyer to settle the finance and then pay you the difference when he collects?

Or settle it th next day and get a clearance letter from the finance company a week or so later as proof it's clear?

[TheDrownedApe]

It's going to be a scary proposition for the buyer. I would want cast iron guarantees written in blood.

"Hey wanna buy my car; can you pay the PCP outstanding first then it's yours. Look i will sign his piece of paper saying so"

Today you will most likely find me - Waking away as there are easier cars out there.

[Roboticarm]

Yes, the buyer pays the finance company what is owed and then pays you the remainder, assuming you aren't in negative equity in which case you both call the finance company
I sold mine via motorway dot co dot uk and this is exactly what happened. They paid the main part of the balance, I paid the rest and they got the car

[jjr1]

I have bought several cars that were on finance. Never been an issue. Get a settlement figure and then either pay the finance directly or get the owner to after you pay them.

Bought cars with over £40k of debt. Got some good bargains to as every one else runs scared...

[syl]

I don’t think paying £20k to black horse and £2k to the seller in exchange for a car, the keys and a V5 slip is any scarier than paying £22k directly to the seller for the same. If anything, there’s more proof of the transaction if there’s any dispute.

[bennno]

syl said:

I don’t think paying £20k to black horse and £2k to the seller in exchange for a car, the keys and a V5 slip is any scarier than paying £22k directly to the seller for the same. If anything, there’s more proof of the transaction if there’s any dispute.

That’s daft, if it’s got finance you’d be better to pay that and only the balance to the vendor.

A signed letter from vendor summarising transaction should be asked for to document sale.

[Deep Thought]

Its easy done and not a problem for a lot of buyers.

Its simply a matter of the buyer paying the finance company by phone. The finance company will then confirm by phone they now no longer have a financial interest in the car and follow up with an email.

If the car is otherwise right spec, right history, right seller, and right price, why would anyone walk away over payment to the finance company?

At some point - unless you're walking about with a large bag of cash (well, this is pistonheads after all) then you're going to have to transfer money to the seller.

[Far Cough]

Very easy to do but there has to be element of trust on both sides. Some run away in fear and some see it as no problem.

But to answer your actual question , yes it can be done simply.

[syl]

bennno said:

syl said:

I don’t think paying £20k to black horse and £2k to the seller in exchange for a car, the keys and a V5 slip is any scarier than paying £22k directly to the seller for the same. If anything, there’s more proof of the transaction if there’s any dispute.

That’s daft, if it’s got finance you’d be better to pay that and only the balance to the vendor.

That was exactly my proposal. You are misunderstanding my intention, probably my fault.

I don’t find it any scarier to pay £20k to the finance house directly and £2k to the vendor for a financed car than I would to pay a vendor £22k for the same non-financed car.

Even if taken the wrong way, it still stands: I would find it much scarier to pay the vendor directly the whole £22k for a financed car!

Edited by syl on Thursday 29th October 09:18

[Mr-B]

I've bought and sold a car on finance and it was the same process for both. I as the buyer paid the finance company directly and when I sold a car with finance the buyer of my car did the same and paid the finance company directly, it's the safest way for all concerned.

[jgrewal]

Have done the many times - no issues and sometimes work in favour if car worth more than the outstanding finance before returning the vehicle