What to do

[richo28]

Advice needed here .
We brought a fiat 500 Twinair sport about 18 months ago and now need a bigger car for a growing family.
It has finance still on it and we can't just give it back as the finance company are saying that we still haven't paid half for it,balloon payment.
My question is that knowing that you shouldnt sell a car on finance should I try selling it anyway .I intend on being 100% honest with the buyer on this.
All I want is to pay the finance off it,I'm not interested in making any more money just want rid really.Has any one ever done this with a car or should I just go to a dealer to see if they want it.?

Any advise would be welcome

[Rakoosh]

I might be being a bit thick here - but why shouldn't you sell the car? There are no restrictions as far as I know - you jsut have to pay off the finance company and you may find you're out of pocket a little...

I think you'll find that less people are interested (for example personally I think of the cars I am interested in there are enough examples of cars that are not on finance that I wouldn't bother) - but that does not preclude you from trying?

also I am pretty sure - if you really need shot of it - that a dealer or wbac will take it off your hands.

you have a desirable enough car so finding a bueyr should not really be a hassle.

richo28 said:

Advice needed here .
My question is that knowing that you shouldnt sell a car on finance should I try selling it anyway .

[300bhp/ton]

richo28 said:

Advice needed here .
We brought a fiat 500 Twinair sport about 18 months ago and now need a bigger car for a growing family.
It has finance still on it and we can't just give it back as the finance company are saying that we still haven't paid half for it,balloon payment.
My question is that knowing that you shouldnt sell a car on finance should I try selling it anyway .I intend on being 100% honest with the buyer on this.
All I want is to pay the finance off it,I'm not interested in making any more money just want rid really.Has any one ever done this with a car or should I just go to a dealer to see if they want it.?

Any advise would be welcome

Yep should have no real issues getting shot if you want, but just be aware you may still owe out on it.

I guess a sensible question, do you really need to sell it and does it need to be sold now? Will a baby seat no fit in a 500? Or do you have other vehicles you could use?

[Rally2]

It is very risky for the buyer, becuase the finance company actually own the car not you, that is why it isn't normally done, however I did sell a car, just like you, with finance still owing. What I did is told the people who were buying the deal and got them to pay the finance company directly over the phone when I was there with them, it actually worked fine becuase it means they didn't have to carry £5k with them. Either that or pay the remaining finance with them there to prove you have paid it.

hope this helps

[Whiskeydog]

Rally2 said:

It is very risky for the buyer, becuase the finance company actually own the car not you, that is why it isn't normally done, however I did sell a car, just like you, with finance still owing. What I did is told the people who were buying the deal and got them to pay the finance company directly over the phone when I was there with them, it actually worked fine becuase it means they didn't have to carry £5k with them. Either that or pay the remaining finance with them there to prove you have paid it.

hope this helps

As Rally2 said... just be honest with the buyer and you'll have no problems selling.

[BFG TERRANO]

The problem for the buyer is the gamble you don't clear the finance on it when they cough up and drive off. Next thing they know its being picked up by the lender as its legally still theirs.

Is it possible to transfer the outstanding debt over to the new keeper?

[MarkP1973]

you can agree with the buyer to pay the finance off in their presence when they come to buy the car, so they'll be satisfied it's been done. that's the only thing that would put me off buying a car with finance.

[richo28]

Cheers for the advise guys .
I was in the same mind set about them just pay the finance company direct.
I know finance company's don't like you selling cars with finance for the legal reason ,ownership etc.
We just want out and to be honest I've google my model of 500 and can't find any that are the same or with the low miles ours .
I'd keep it as a 2 nd car but it just wouldn't get used and sit on the drive.
I think I'm gonna spend the weekend giving it a real good clean and get a load of photos done and just go for it.
Thanks for the positive responses guys

[CYMR0]

Can you get a bank loan to clear the finance?

It might be tough - you might find that you end up with too much credit against your name - but that would solve the problem for you... then either use the funds to pay for your next car with cash or pay it off straight away.

[itz_baseline]

Rally2 said:

It is very risky for the buyer, becuase the finance company actually own the car not you, that is why it isn't normally done, however I did sell a car, just like you, with finance still owing. What I did is told the people who were buying the deal and got them to pay the finance company directly over the phone when I was there with them, it actually worked fine becuase it means they didn't have to carry £5k with them. Either that or pay the remaining finance with them there to prove you have paid it.

hope this helps

See I would run a mile if a car I was buying still had finance on it....I couldn't help but think this was some kind of scam and you just got a friend on the other end of the phone transferring money into some random account pretending to the finance company.

[northandy]

itz_baseline said:

See I would run a mile if a car I was buying still had finance on it....I couldn't help but think this was some kind of scam and you just got a friend on the other end of the phone transferring money into some random account pretending to the finance company.

Making bank transfers isnt that simple, you cant just get card number and then help yourself.

[cpas]

As has been said already, it might appear suspicious, no matter how honest you are trying to be. Also, you are probably going to have to let the car go for a fair bit less than it's worth, otherwise there's no incentive for the buyer to take the risk. I quite often but cars from traders nowadays as, even though they cost a bit more, you're guaranteed it will be HP clear etc, and you've got some sort of warranty, and you don't have to carry lots of cash about.

[richo28]

This is why I was worried about doing it.but I'm going to give it a try anyway as the finance company is as helpful and a dead parrot on a pirate .
There not interested in helping me out or really that bother how I pay it off.Its the first and last time I ever finance a car with a dealer .And the last.
In the past I've put a big deposit down and had a small bank load but the dealer kinda steered us towards the finance in this case all be it my fault for being a bit naive ,you live and learn don't you.

[The Moose]

What's the value of the car?

What's the amount of finance outstanding?

When the buyer HPI checks the car, they'll see that finance is owing, but also who it's with, their contact details and the reference number. This'll allow them to call the finance company when with you (so you can authorise the finance company to speak to the buyer). The buyer then arranges payment of the sale price. You pay the balance if you're in negative equity, or the buyer pays you the difference if you're in positive equity.

Job jobbed. Not complicated. Not a big deal imho

[Rakoosh]

Like I said I don't think its a big deal but conversely you are a bit more limited in terms of your audience (for example I personally would not buy a car which had outstanding finance if there were examples around that didn't... even though its only a small complication its one more complication than I'd have).

So it would either have to be a rare car OR priced accordingly.

In this scenario - I would personally try advertising it amongst a circle that could trust you ... i.e. your friends, a work bulletin board, etc etc. and by chance are looking for a newish car.

Maybe its just me but whenever I have helped people sell a car privately its always been to either someone they knew either directly or via someone else. With social networks these days your audience can be quite big and its a win win on the trust side.