Selling a car with outstanding Finance

[Ibizahoo2]

I want to sell my car that is still under a finance agreement, I owe around 7.3k and the car is worth 8-8.5k, I have tried to trade it in to a dealership but they wont give me the value of the car, obviously because they want to make a profit.

so, am I able to sell my car privately to someone for 8.5k then pay off the 7k to use the 1.3k as a deposit, obviously I would tell the new owner what I was doing so as to keep them in the loop and. what would I have to do, do I need to inform the finance company of my intentions? is it legal.

any feedback will be great, thanks

[beemarman]

Hi,

Just tell the buyer of the finance and then he would pay it off and give you the rest before picking up the car, or you can pay it off yourself if you have the funds.

[Ibizahoo2]

i thought so, I dont have the funds currently so would need them to pay it off. so you think as long as I state in the ad the full details it should be fine?

[Sarnie]

From the buyers point of view, once they have paid the finance off you could just dissappear, so ideally, on the day of collection they come to your house and phone the finance company whilst they are with you. Pay off the finance, give you the difference and away you go.

I wouldn't do it any other way.

[steve singh]

Sarnie said:

From the buyers point of view, once they have paid the finance off you could just dissappear, so ideally, on the day of collection they come to your house and phone the finance company whilst they are with you. Pay off the finance, give you the difference and away you go.

I wouldn't do it any other way.

+1

[theboss]

Get the finance company to post you a settlement figure so you have all the details in writing, a serious buyer will probably want to see this.

You'll want to settle the finance with the buyer present (any sane buyer would surely insist upon this) so you'll need to be aware of the payment methods they can accept and opening hours, etc.

If I were buying in this situation I wouldn't trust anyone to settle up 'after' I'd left. I would want to see this done on the spot and receive confirmation from the finance house over the phone that their interest in the car had been absolved. Even if this involved going to the bank and CHAPSing the settlement figure to the finance house and waiting for clearance.

I saw a situation in my own family once where a car changed hands (within the family!) and finance was not cleared as had been promised - the ensuing st storm was not pretty.