Bank finance for a car, want to sell...

remsburgsgirl

Just wondered what the story is with bank finance on a car...

My hubby wants to get rid of his car, but there's no way he'd sell it these days, or it'd take forever to find a buyer, it being a 2.5 WRX and all...

He is a bit over half way through paying off his finance on the car to the bank, everythings always been paid on time...we are wondering if it is possible to sell it to a car dealer for example, for around the cost of what is owed to the bank...or will dealer stay clear of any cars that have finance on them?

We rang the bank twice this week & were on hold both times for ages, so thought we'd suss it out here while trying to get through!

Thanks

Scortho

Is it hire purchase?
If so it might be worth looking into the half rule.

_Kaiser_

Check out the Half Rule. If he's up to date on his payments and has cleared over 50% he may just be able to hand it back to them without penalty

Supergurrier

You would be suprised how many people would buy a 2.5 WRX

This is why i only use credit union loans tbh you own the car from the off and the interest rates (everything considered) are comparable

remsburgsgirl

What is this half rule? Is it he won't get a bad credit rating from the bank if he hands it back? Also how does he hand it back...does he still have to find a dealer etc?

He thinks it is hire purchase...We'll have a look at the paperwork to see what we can find out.

@Supergurrier...are you interested in an immaculate, Subaru enthusiast owned, 2.5 WRX? I am all for the credit union for loans and savings...he'll be going down that road next, and staying away from the banks!

Are you allowed sell privately or to a dealer with finance owed on it?

Supergurrier

You are allowed to sell if you inform the buyer and come to an arrangement.

Unfortunately not i already have my 2.5 turbo blue demon so i know the strain of tax/20ish mpg and in my situation a 3 day working week.

Credit union in fairness is great. You can pay off early/no fee's if you miss a payment (Has happenne dto me on a bank holiday) besides like 1 euro or so more interest and if you follow the rules you get into the habit of saving and before you know it you have a nice chunk of change that you cant spend and can be lent on for future loans. + You can assimilate your savings towards the end of a loan if you absolutely need to.

I try and save 5-10 a week and over the term of a 3-4 year car loan that add's up and x3 it really add's to your borrowing power next time around.

Scortho

remsburgsgirl wrote: »

What is this half rule? Is it he won't get a bad credit rating from the bank if he hands it back? Also how does he hand it back...does he still have to find a dealer etc?

He thinks it is hire purchase...We'll have a look at the paperwork to see what we can find out.

@Supergurrier...are you interested in an immaculate, Subaru enthusiast owned, 2.5 WRX? I am all for the credit union for loans and savings...he'll be going down that road next, and staying away from the banks!

Are you allowed sell privately or to a dealer with finance owed on it?

If you have paid more than half of the value of the car back (will be in the documents what this value is) you can return it to the hire purchase company at no risk to your credit rating.
In fact you don't have to have half paid.
Also don't sign a voluntary surrender form.

More info here.

http://www.consumerhelp.ie/car-finance-debt

remsburgsgirl

Just checked the forms, it is hire purchase...it also has a value that you can have paid off before you cancel the HP (50%)...We are about a grand away from this amount...so if we put a grand cash with the car when cancelling the HP agreement we should be at this amount...

...Just need them to answer their phones now, keep being put on hold for ages & it has eaten our credit each time...

...Wondering if anyone can tell me what is the process of handing back a car on HP? Who takes the car...who looks over it to make sure (as they state in the agreement) that it is in good condition?

Scortho

remsburgsgirl wrote: »

Just checked the forms, it is hire purchase...it also has a value that you can have paid off before you cancel the HP (50%)...We are about a grand away from this amount...so if we put a grand cash with the car when cancelling the HP agreement we should be at this amount...

...Just need them to answer their phones now, keep being put on hold for ages & it has eaten our credit each time...

...Wondering if anyone can tell me what is the process of handing back a car on HP? Who takes the car...who looks over it to make sure (as they state in the agreement) that it is in good condition?

All instructions are in this link I linked earlier.

Anyways just in case here it is again.
http://www.consumerhelp.ie/car-finance-debt

remsburgsgirl

Sorry Scortho, I see that link now, I recently had to turn on signatures to be able to pm a service provider here on Boards & since then I've been missing half peoples posts by blinking over what I think is a link or sig, apologies, I will have a look at that now

Scortho

remsburgsgirl wrote: »

Sorry Scortho, I see that link now, I recently had to turn on signatures to be able to pm a service provider here on Boards & since then I've been missing half peoples posts by blinking over what I think is a link or sig, apologies, I will have a look at that now

No worries. It explains it all fairly clearly and more importantly, what to do and what not to do.
They may try fob you off at first, saying such a thing doesnt exist, dont let them.
Don't sign a voluntary surrender form either.

remsburgsgirl

That's a great link thanks Scortho...

The process seems so much easier than I thought....I am convinced it can't go as smoothly as that website says & we will come up against some kind of wall from the bank not making things easy...The car is immaculate and has no damage (& we will take pics) should we get our own mechanic to sign something to say it is in perfect condition before we go ahead, just to cover ourselves...?
I am interested to know what process the bank uses to collect & sell the car in order to get their money back on it after we hand it back

(We are now well informed about the voluntary surrender form, thanks for that too)

BMJD

remsburgsgirl wrote: »

That's a great link thanks Scortho...

The process seems so much easier than I thought....I am convinced it can't go as smoothly as that website says & we will come up against some kind of wall from the bank not making things easy...The car is immaculate and has no damage (& we will take pics) should we get our own mechanic to sign something to say it is in perfect condition before we go ahead, just to cover ourselves...?
I am interested to know what process the bank uses to collect & sell the car in order to get their money back on it after we hand it back

(We are now well informed about the voluntary surrender form, thanks for that too)

What happened me was that the bank sent an assessor over, he inspected the car, didn't drive it or even start it up. I think he was mainly looking to see if there was any crash damage as he used one if those paint thickness measuring devices all over it. He reported back that it was in excellent condition despite a couple if small scratches etc. I was expecting them to find a load of things wrong and get hit with a large bill but it was really straightforward.

A couple of weeks later the bank rang and asked if I'd like to drop the car at the auction house (Merlin Auctions in Naas) or else they could collect it from my house for some mad fee. I dropped it off and that was it, never signed anything or heard back.

BMJD

Oh and the bank offered me a settlement figure if about €500 less than the total amount outstanding. I declined, car went for less than half that at auction

I was tempted to go along and buy it back

Scortho

BMJD wrote: »

What happened me was that the bank sent an assessor over, he inspected the car, didn't drive it or even start it up. I think he was mainly looking to see if there was any crash damage as he used one if those paint thickness measuring devices all over it. He reported back that it was in excellent condition despite a couple if small scratches etc. I was expecting them to find a load of things wrong and get hit with a large bill but it was really straightforward.

A couple of weeks later the bank rang and asked if I'd like to drop the car at the auction house (Merlin Auctions in Naas) or else they could collect it from my house for some mad fee. I dropped it off and that was it, never signed anything or heard back.

You should have gone to the auction and seen if it went for less, than what was owed.
My guess would be significantly less and could be a way for the op to keep the wrx, but have signifcantly lower repayments.

BMJD

Scortho wrote: »

You should have gone to the auction and seen if it went for less, than what was owed.
My guess would be significantly less and could be a way for the op to keep the wrx, but have signifcantly lower repayments.

I watched the auction online, it went for nearly half what was owed!

remsburgsgirl

If you pay over the half rule and then hand your car back using the 'half rule'...do you get a refund to the amount you over paid? I sent the letter stating the half rule on my husbands car a month ago & they acknowledged it before the start of this month & still took the standing order from my bank for this months car repayments..