finance owing but need to change vehicle

123donalo

I own a l200 converted to commercial as i am self employed. I owe 6000 euro finance on it but need to shift it to buy a small van. I cant trade due to finance or can i? If i sell privately it will deter people with finance outstanding. Id like to sell for 10k pay off finance and purchase van for 4k. Can anyone help me because at moment it looks like the only way out is let payments lapse forcing bank to take it off me and thus have no finance but then poor credit surely and loosing money as a result. Can anybody help please?

Stheno

I *think* there is a fifty/fifty clause with car financing that allows you hand the vehicle back without penalty once you have paid 50% + of the finance, do a search in here and you might find more details.

Not sure if it would apply to a van however.

Edit: Found the thread http://www.boards.ie/vbulletin/showthread.php?t=2055601794&highlight=finance+hand+back

It applies to Hire Purchase agreements.

rebel.ranter

Be upfront with any prospective buyer. Work out a deal where they pay €6k directly to the finance company & €4k to you. (I assumed you owe €6k). This way the buyer is at no risk & your credit rating remains intact.

123donalo

Trouble is its financed with BOIF and not company i bought it from as it was purchased new in uk.

123donalo

Thanks rebel ranter. Good advice.

123donalo

Thanks stheno

dingding

rebel.ranter wrote: »

Be upfront with any prospective buyer. Work out a deal where they pay €6k directly to the finance company & €4k to you. (I assumed you owe €6k). This way the buyer is at no risk & your credit rating remains intact.

How can you be sure that they pay the 6K to the finance company.

You need to be careful that you don't end up with 4K and owing the finance company 6K

You would probably both need to be present when the finance is paid off.

hiscan

Why don't you trade it in and get the garage to pay off the finance crowd and use the balance against what you are buying?

rebel.ranter

Of course you need to ensure that the finance side of things is paid too. There are honest, decent people out there & with a bit of common sense a buyer & a seller can work something out that works.
There's an awful lot of cynicism on Boards. People need to have a bit of balls to get in with things & not be fretting all the time.
Take the example of the Cork guy recently on here that managed to make a sale of his car to a Polish girl (that was living in Poland, not Ireland). They arranged it between them & met in Dublin airport. She drive back to Poland, he flew home to Cork. They worked it out.
So any deal can be made to work. The way the economy is right now people understand that people owe finance, etc. Best if luck with your sale OP.

123donalo

Hiscan. Surely no garage would take a trade in worth 10k against something worth say 4k. Would they?

Anan1

hiscan wrote: »

Why don't you trade it in and get the garage to pay off the finance crowd and use the balance against what you are buying?

Because he'll save a couple of grand by selling and buying privately.

123donalo

Anan1 wrote: »

Because he'll save a couple of grand by selling and buying privately.

Exactly

hiscan

Anan1 wrote: »

Because he'll save a couple of grand by selling and buying privately.

I know that but he's also looking for peace of mind with the finance company at least that would be garunteed with a Garage.
It would probably only work if you were trading up though not down,I think!

Anan1

hiscan wrote: »

I know that but he's also looking for peace of mind with the finance company at least that would be garunteed with a Garage.
It would probably only work if you were trading up though not down,I think!

It is possible to sell the L200 privately while being absolutely confident that the finance has been settled. It's basically as rebel.ranter said - i'd add that both should go to the finance co together where the purchaser pays off the finance, the OP gets a reciept to prove this, the purchaser pays the balance to the OP, the OP signs over the car to the purchaser and away they go.:)

123donalo

hiscan wrote: »

I know that but he's also looking for peace of mind with the finance company at least that would be garunteed with a Garage.
It would probably only work if you were trading up though not down,I think!

Cant afford to trade up under current business circumstances. This vehicle is not serving its purpose now and is costing to much to run. Need something easier on pocket without any more finance.

123donalo

rebel.ranter wrote: »

Of course you need to ensure that the finance side of things is paid too. There are honest, decent people out there & with a bit of common sense a buyer & a seller can work something out that works.
There's an awful lot of cynicism on Boards. People need to have a bit of balls to get in with things & not be fretting all the time.
Take the example of the Cork guy recently on here that managed to make a sale of his car to a Polish girl (that was living in Poland, not Ireland). They arranged it between them & met in Dublin airport. She drive back to Poland, he flew home to Cork. They worked it out.
So any deal can be made to work. The way the economy is right now people understand that people owe finance, etc. Best if luck with your sale OP.

Just wonder if it will be as appealing to prospects when you say finance outstanding but if its all agreed up front it would work ok i guess. Sound.

hiscan

Anan1 wrote: »

It is possible to sell the L200 privately while being absolutely confident that the finance has been settled. It's basically as rebel.ranter said - i'd add that both should go to the finance co together where the purchaser pays off the finance, the OP gets a reciept to prove this, the purchaser pays the balance to the OP, the OP signs over the car to the purchaser and away they go.:)

This is probably the only way so bar getting a loan off someone for 6k to pay off the finance company until your jeep is sold.
Best of luck regardless OP

jimmycrackcorm

dingding wrote: »

How can you be sure that they pay the 6K to the finance company.

Because if they didn't then the finance company will reposess the L200

You would probably both need to be present when the finance is paid off.

Yes - for both parties so that the buyer is assured that the vehicle won't be reposessed and the seller knows he won't have his credit record affected...

Anan1

123donalo wrote: »

Just wonder if it will be as appealing to prospects when you say finance outstanding but if its all agreed up front it would work ok i guess. Sound.

What worries people isn't the finance itself, it's the prospect of their being defrauded. If you're honest & upfront right from the beginning and can explain a mechanism that will protect both of you then I think most reasonable people should be fine with that.

123donalo

jimmycrackcorm wrote: »

Because if they didn't then the finance company will reposess the L200




Yes - for both parties so that the buyer is assured that the vehicle won't be reposessed and the seller knows he won't have his credit record affected...

Good points. Ta

123donalo

Anan1 wrote: »

What worries people isn't the finance itself, it's the prospect of their being defrauded. If you're honest & upfront right from the beginning and can explain a mechanism that will protect both of you then I think most reasonable people should be fine with that.

Thanks. Ill just have to see the response i get and be genuinely honest from the start

123donalo

hiscan wrote: »

This is probably the only way so bar getting a loan off someone for 6k to pay off the finance company until your jeep is sold.
Best of luck regardless OP

No more loans! Bought three new vehicles in 06,07 and 08. All financed through the bsiness. Making all payments monthly but two instead of three would be more comfortable but still require a third vehicle.

hiscan

Anan1 wrote: »

What worries people isn't the finance itself, it's the prospect of their being defrauded. If you're honest & upfront right from the beginning and can explain a mechanism that will protect both of you then I think most reasonable people should be fine with that.

One more question from me about this,do you think this might encourage some people to take advantage of the OP by offering much less than what the jeep is worth because there is Finance owed on it and they might be of the mindset that they are "getting him out of a hole so make him pay" ?

123donalo

hiscan wrote: »

One more question from me about this,do you think this might encourage some people to take advantage of the OP by offering much less than what the jeep is worth because there is Finance owed on it and they might be of the mindset that they are "getting him out of a hole so make him pay" ?

It may seem like that to some people alright. I guess i just have to reiterate that its not been sold for financial reasons only suitability but that sounds a bit desperate too i guess.

Anan1

hiscan wrote: »

One more question from me about this,do you think this might encourage some people to take advantage of the OP by offering much less than what the jeep is worth because there is Finance owed on it and they might be of the mindset that they are "getting him out of a hole so make him pay" ?

I wouldn't discount the possibility of the odd punter trying, but I think the finance thing will just be an excuse - if it wasn't that they'd have another excuse to lowball. At the end of the day the market decides what anything is worth - I certainly wouldn't pay any less for a car on finance. Well, maybe a little to compensate me for an hour or two of extra hassle, but that's not much.

123donalo

Anan1 wrote: »

I wouldn't discount the possibility of the odd punter trying, but I think the finance thing will just be an excuse - if it wasn't that they'd have another excuse to lowball. At the end of the day the market decides what anything is worth - I certainly wouldn't pay any less for a car on finance. Well, maybe a little to compensate me for an hour or two of extra hassle, but that's not much.

If only all buyers were like that

Anan1

123donalo wrote: »

If only all buyers were like that

You're going to come up against all sorts when selling a car. Just remember that you only have to be lucky once.:)

123donalo

Anan1 wrote: »

You're going to come up against all sorts when selling a car. Just remember that you only have to be lucky once.:)

I have thought of another avenue out of my predicament. What if i were say swap my jeep for a van as required against a new or nearly new vehicle would the finance company be willing to transfer what i owe to this new vehicle. Has anyone experienced this situation.

david

Are you sure the finance is secured on the car as collateral?

123donalo

david wrote: »

Are you sure the finance is secured on the car as collateral?

Dont fully undestand what you mean david. I purchased in uk at six months old. Applied to BOI finance you lodged money in my account and i wired it to uk. Why would that make a difference if trying to move it david.