Selling a car on finance/PCP

[Mully1906]

Hi all,

I’m nearly a year into my PCP on my brand new car, but am wanting to sell it to get out of the finance world and back into something I actually own.

I put a rather large deposit down initially so I’m now at the stage where the “private sale” guide price is nearly the same as my settlement figure.

How easy is it to sell a car while it’s still on finance? Is it even possible? What’s the process of clearing the settlement?

Thanks!

[Mark V GTD]

Yes its possible and I have done it numerous times. Obviously if you can settle it yourself before hand its a lot simpler but if not:

First thing is get a letter from the finance company confirming the balance payable - ideally a paper letter as its tangible.

Second - be open with enquirers about it.

Make sure the car is at the address the finance is with for viewings.

Once your has agreed to the purchase you need to get paid by electronic transfer from the buyer and then immediately make sure the finance balance is settled - on the phone there and then with the buyer present. I have done this by calling the FC on speaker phone with the buyer there next to me and going through the settlement procedure so they are 100% certain its cleared. This can take an hour or so but you should be able to get an email off them confirming and then you sort the V5 out. If its all done with the buyer there hearing the conversation they will be OK about it. At then end of the day they want the car and if everything adds up they will be fine with it.

Folk that are not happy with this situation will likely not get as far as viewing the car.

Edited by Mark V GTD on Sunday 27th December 11:18

[RUSTILLDOWN]

In this scenario I would probably advise you use a trader, lots of private buyers would have concerns but it’s just part of the process for a trader.

Edited by RUSTILLDOWN on Wednesday 23 December 10:19

[fido]

I'd be interested in this as well. Want to drive a Yaris GR for a year and then hand it back (might be working abroad again) - too short for leasing and PCP + selling might be cheaper!

[duckson]

Was no problem when i sold my M2 in June, a garage actually bought it and they paid BMW FS....once i was happy BMW FS had the cash in their account I let the car go.

[cts1975]

Mark V GTD said:

Yes its possible and I have done it numerous times. Obviously if you can settle it yourself before hand its a lot simpler but if not:

First thing is get a letter from the finance company confirming the balance payable - ideally a paper letter as its tangible.

Second - be open with enquirers about it.

Make sure the car is at the address the finance is with for viewings.

Basically some people will not be able to get their heads around it and some will not have a problem with it.

Once you have a buyer has agreed to the purchase you need to get paid by electronic transfer from the buyer and then immediately make sure they finance balance is settled on the phone there and then with the buyer present. I have done this by calling the FC on speaker phone with the buyer there next to me and going through the settlement procedure so they are 100% certain its cleared. This can take an hour or so but you should be able to get an email off them confirming and then you sort the V5 out. If its all done with the buyer there hearing the conversation they will be OK about it. At then end of the day they want the car and if everything adds up they will be fine with it.

Folk that are not happy with this situation will likely not get as far as viewing the car.

Mark has this spot on. I've sold mini coaches that have had finace owing. I've followed the process similar to the above.