If I want to sell a car with outstanding finance, what's the best way to do it?

pARTner81

I need to sell the car, but do I need to tell any potential buyers about the outstanding finance if i am going to pay it off after the sale anyway.

chiefwiggum

most ppl will do a finance check on the car first and thats gonna be the first question they ask and as fine and upstanding a chap im sure you are nobody is going to take your word that you will pay the outstanding balance....good luck with the sale anyway...it a tough market at the moment

pARTner81

chiefwiggum wrote: »

most ppl will do a finance check on the car first and thats gonna be the first question they ask and as fine and upstanding a chap im sure you are nobody is going to take your word that you will pay the outstanding balance....good luck with the sale anyway...it a tough market at the moment

I was just worried about influencing a possible buyers decision. I'm sure there'll be plenty of people doing this at the moment. Thanks chief!

chiefwiggum

your welcome...yeah it could influence them more than likely it will but sure all you can do is try and see what happens

-Chris-

I'd think it's wise to be up front about this fairly early in the negotiation.

If I found out that you were trying to sell me a car that had outstanding finance, but you weren't forthcoming with that information, it would scare me right off.

It's not unusual that people will do finance checks before buying a car, and if you're taking out a loan for a car your finance company will probably do a check. It will be found out.

You may have the best of intentions, but if you're holding back information you run the risk of ruining any trust you've built with your prospective customer.

Poly

There's nothing wrong with having finance on a car. It's a good sign sign if the seller tells the buyer the bank details etc. Saves the buyer time and money doing checks etc.

Drummerboy08

If you really want to sell it with the finance outstanding, ask the buyer to make a draft out payable to the finance company.

If the amount your selling for is less than the amount to settle, then ask the buyer to get the draft made out to the finance house, you get a draft for the difference and bring him to the bank so he/she can watch you lodge it.

Thats what I'd be doing anyhow.

MrMarsh

If you have taken out a secured loan to purchase your car, the security being your car, then the car is not yours to sell. It's still owned by the bank you borrowed the money from until you make your final monthly payment or until you settle the loan balance in full.

bazz26

OP, you will need to be up front and honest with any potential buyer as in these times nearly everyone does some sort of finance check on a car prior to buying it. Not being honest will result in you loosing the trust of the buyer and a sale.

Get a settlement figure from your finance company on the loan. Once a selling price has been agreed with the buyer arange with them to meet up with you at the finance company to pay off the loan. If the settlement amount is less than the agreed selling price then get the buyer to get one draft made payable to the finance company and the balance payable to yourself. If the settlement figure is greater than the selling price then again the buyer makes a draft out to the finance company and you pay the balance. The finance company will issue you a final settlement statement telling you and the buyer that the loan is settled and they no longer have an interest in the car.

Everything is clear and transperant between buyer and seller.

alang9831

Had experience of this a few years ago.

Be upfront with any potential buyer as they may have a finance check already done and be testing you.

Offer to let them pay by draft to finance institution.

This is what I did(Draft for outstanding finance and balance in cash)

No law to stop you selling vehicle with finance as long as you pay it off and dont buy another vehicle with finance from the one you sold!!!