Selling a car with finance outstanding?
Discussion
Well let me start off by saying that I love my E60 535D. I'm planning to get married near the end of the year though and a little voice keeps telling me that I should consider selling up to knock the finance payments off of my current monthly expenditure until after the wedding.
If I did decide to sell, what's the protocol with outstanding finance? State the amount I'm the ad and say something along the lines of "buyer to pay balance of £XXXX direct to finance company on day of sale, remainder to myself via BACS or cash"?
Is it likely to make it hard to sell? I'd personally be a bit weary but don't think it would stop me taking the car if I liked it.
As I say, I don't particularly want to part with it. I'm looking forward to making little improvements and enjoying it a bit longer yet, but I'd be remiss if I didn't consider it.
If I did decide to sell, what's the protocol with outstanding finance? State the amount I'm the ad and say something along the lines of "buyer to pay balance of £XXXX direct to finance company on day of sale, remainder to myself via BACS or cash"?
Is it likely to make it hard to sell? I'd personally be a bit weary but don't think it would stop me taking the car if I liked it.
As I say, I don't particularly want to part with it. I'm looking forward to making little improvements and enjoying it a bit longer yet, but I'd be remiss if I didn't consider it.
Don't sell it if you love it, I sold my astra that I loved at the time to clear the finance and cut running costs by getting a little diesel clio. Within 6 months of being married I was driven to madness by how dull it was and regretted selling. So unless you need to get rid of the BM I'd say keep it unless the money is really tight.
Depends.
Is the finance actually secured on the car? If so, you need to ring the finance company and ask them.
If the finance is a personal loan, secured on anything other than your car (or unsecured) then it's irrelevant to the sale of the car. If you're unsure, ring the finance company and ask them.
Is the finance actually secured on the car? If so, you need to ring the finance company and ask them.
If the finance is a personal loan, secured on anything other than your car (or unsecured) then it's irrelevant to the sale of the car. If you're unsure, ring the finance company and ask them.
Very simple process, and many private sellers are doing it.
Lets say the car is worth 15k, 10k is on finance. State in the advert that there is finance outstanding, and will be paid off at point of sale.
Mr buyer sends you 15k, you then call the finance company (whilst Mr Buyer is with you still) and pay the balance off over the phone, on loudspeaker perhaps.
Neither you the seller, or the buyer are going to want the car wandering off without it being clear.
Nothing to be worried about, you'd be suprised how many dealers sell cars with HP left on them, and pay them off sometime after the car goes
Lets say the car is worth 15k, 10k is on finance. State in the advert that there is finance outstanding, and will be paid off at point of sale.
Mr buyer sends you 15k, you then call the finance company (whilst Mr Buyer is with you still) and pay the balance off over the phone, on loudspeaker perhaps.
Neither you the seller, or the buyer are going to want the car wandering off without it being clear.
Nothing to be worried about, you'd be suprised how many dealers sell cars with HP left on them, and pay them off sometime after the car goes
Any serious buyer would have no issues, usually the finance company will speak directly with them once you have authorised the discussion, I've bought 2 cars that way, both well into 5 figures and paid the finance company the outstanding amount and the balance to the owner .....
Its the same way we all buy houses wen mortgages are involved.
Its the same way we all buy houses wen mortgages are involved.
Yep, I just bought a car which had finance owing.
I went to the bank with the seller, paid the finance off by direct transfer in the bank to the finance company bank account, and then transferred the remainder of the balance to his bank account.
Could have done it all from his house using my phone, but he preferred to go the bank.
Job done.
I went to the bank with the seller, paid the finance off by direct transfer in the bank to the finance company bank account, and then transferred the remainder of the balance to his bank account.
Could have done it all from his house using my phone, but he preferred to go the bank.
Job done.
I have attempted to sell 2 cars like this.
The first our mx5 was no problem and the finance company were not phased and even confirmed by fax and phone to the buyer that the car was clear on purchase.
The second my bmw didn't work, whether it was the car or market I don't know. I was trading in and offered a poor price so put it up privately at a very good price but not stupidly cheap (ie cheapest in country etc!). Anyway got a lot of calls and every time people were put off by the finance, lets face it you have to be upfront, you can't have someone drive 100 miles and view it without knowing fairly important details.
In the end I got a better price from a local indy dealer and someone missed out on a very good cheap car! I wonder if breaking the 10k barrier creates problems mentally for buyers comfort - it seemed to with mine?
Ideally if you could borrow the money from a relative, pay it off and sell it would be easier.
The first our mx5 was no problem and the finance company were not phased and even confirmed by fax and phone to the buyer that the car was clear on purchase.
The second my bmw didn't work, whether it was the car or market I don't know. I was trading in and offered a poor price so put it up privately at a very good price but not stupidly cheap (ie cheapest in country etc!). Anyway got a lot of calls and every time people were put off by the finance, lets face it you have to be upfront, you can't have someone drive 100 miles and view it without knowing fairly important details.
In the end I got a better price from a local indy dealer and someone missed out on a very good cheap car! I wonder if breaking the 10k barrier creates problems mentally for buyers comfort - it seemed to with mine?
Ideally if you could borrow the money from a relative, pay it off and sell it would be easier.
I've done it before, the guy who was buying my X3 transfered the funds to my account once he'd seen the car on the monday, argeed to buy and collect on wedsnesday. On the monday night he paid for the car via bank transfer. Tuesday I phone finance company, pay remainer of balance and guy collects car wednesday. Sorted, I requested an email from finance comapy to confirm payment. Sorted, not a problems
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