Selling a car with outstanding finance...

[LimaDelta]

Ok guys, long story short, the mortgage company have come up a bit short on our latest house purchase, and I am considering my options. I have about 11k equity (from WBAC - more i suspect if sold privately) in our Land-Rover, and I was wondering what is the best way to free this up. Obviously selling privately a check will show up outstanding finance - I know the answer is usually to pay off the finance first, but I don't want to tie up more of my money incase the car a) doesn't sell for a while, or b) we change our minds/sale falls through etc. We don't have to sell, but as the house is a bit of a stretch, I would feel a little more comfortable with a bit of cash in the bank, and a cheaper car on a short lease for while.

Any suggestions?

[tomsugden]

Be honest with a potential buyer, and if they want the car, get them to settle the finance, and pay the balance to you.

[LimaDelta]

Will a dealer PX a more expensive car for a cheaper one plus cash? or is that not really done?

[Butter Face]

LimaDelta said:

Will a dealer PX a more expensive car for a cheaper one plus cash? or is that not really done?

Yes they will, but you'll be buying a cheaper car at retail and trading yours at trade price. You'd be financially better off selling to WBAC I suspect.

[Alapeno]

Have done this before and was pretty simple, you just have to be totally transparent with a potential buyer. I got a settlement figure from the finance company and showed them how much was owed and which company (documentation). You can do it all over the phone when both parties present and pay by card, or if it needs to come from your account, you might have to get them to transfer funds.

The guys that bought mine were really reasonable about it, although I'm not sure you'd have found as good an example as mine at the price, so maybe helped.

I did have a few people turn me down and one muppet in particular - 'thought you said HPI clear pal, well it's not is it, not buying a car on finance, you probably won't pay it off.'

Personally I think it's good to be a bit wary but turning down a decent car and seller because of finance is a bit of a cliche now with how east it is to sort.