Selling my car when Finance outstanding

Skybox

As the title says above, I bought my car about a year and a half ago using VWbank to finance over 5 years. I am considering selling the car and trading down (think there is about 11k owing on finance and car worth in the region of 15k to 16k).

Do I need the permission of the bank before selling the car or can I just sell it and pay off the loan with the proceeds.

Thanks

SJT1

Skybox wrote: »

As the title says above, I bought my car about a year and a half ago using VWbank to finance over 5 years. I am considering selling the car and trading down (think there is about 11k owing on finance and car worth in the region of 15k to 16k).

Do I need the permission of the bank before selling the car or can I just sell it and pay off the loan with the proceeds.

Thanks

Sell it and pay off the balance with the sale proceeds. The person buying the car will want the finance cleared anyways as it will show up on any motorcheck reports!

darragh o meara

Skybox wrote: »

As the title says above, I bought my car about a year and a half ago using VWbank to finance over 5 years. I am considering selling the car and trading down (think there is about 11k owing on finance and car worth in the region of 15k to 16k).

Do I need the permission of the bank before selling the car or can I just sell it and pay off the loan with the proceeds.

Thanks

Best way to do it is get the buyer to give you two drafts, one for finance company for amount owing and the other for you with the balance. At least both of you get peace of mind.

no harm to inform the lender if you have a deal organised. Or even go back to the dealer with the car, they might have an interest in buying it back.

bazz26

This is how I would handle it.

I would ask the Finance company for a settlement statement which will show you how much you still owe them.

You also need to be up front with a potential buyer and tell them that there is outstanding finance on the car that wish to settle as part of the sale. Don't let them find out first via a finance check as it means you were not honest and the buyer will just walk.

Once a sale has been agreed you get the seller to get two drafts, one made out to the Finance company for the outstanding amount owed to them and the balance made out to yourself. You and the seller then go to the Finance company to pay them with their draft and get them to issue a final statement/receipt stating that the finance agreement has been settled and they no longer have any claim to the vehicle.

Skybox

Skybox wrote: »

As the title says above, I bought my car about a year and a half ago using VWbank to finance over 5 years. I am considering selling the car and trading down (think there is about 11k owing on finance and car worth in the region of 15k to 16k).

Do I need the permission of the bank before selling the car or can I just sell it and pay off the loan with the proceeds.

Thanks

I bought my car with outstanding finance, went with the chap to the bank and paid the balance which was a terrific bargain for us. Afaik he rang the bank and asked if this was possible and they said absolutely.

I went with him got receipt and checked that it didn't show outstanding finance on the system.

So yes you can sell the car with outstanding finance just check with the bank first and tell the potential buyer that this the way you want to do it.

Anyone reading this should never hand over money thinking the seller will,pay off the loan because you can get severely stung if he doesn't.

I expect most people ireland will automatically run when they see outstanding finance show up on a cartel check, madness as you could be missing out on a great deal as I got on the Prius.

jomoloney

[QUOTE=Deleted User;88341279]I bought my car with outstanding finance, went with the chap to the bank and paid the balance which was a terrific bargain for us. Afaik he rang the bank and asked if this was possible and they said absolutely.
I went with him got receipt and checked that it didn't show outstanding finance on the system.

So yes you can sell the car with outstanding finance just check with the bank first and tell the potential buyer that this the way you want to do it.

Anyone reading this should never hand over money thinking the seller will,pay off the loan because you can get severely stung if he doesn't.

I expect most people ireland will automatically run when they see outstanding finance show up on a cartel check, madness as you could be missing out on a great deal as I got on the Prius.[/QUOTE]


+ 1

SCOOP 64

Agreed with mad Lad , i brought a car and the owner told me he owned money on it, he couldn't sell because people just walk away, he paid the finance company off , i got full statements from him to prove , best deal i have had on a car,kept it 2 yrs, part exchanged it at main dealer, got more money then i paid for it from main dealer.
But on other side of coin not good for him trying to sell a car still on finance.
I was the only one who would deal with him, so he took my offer.

I don't know what people are scared of in this country when the car has finance outstanding.

But yes I too got a great deal because he couldn't sell it with outstanding finance showing up on the car check.

The most important thing I did was to go to the bank with him and get a receipt from the bank. I never in a million years would have handed over the money directly to the seller hoping he would have paid it off way too risky.

If the seller is genuine he'll do anything to sell it if he's trying to pull a fast one he will not play ball.

Remember the car is owned by the finance company and you can not legally sell it without their permission and if they agree to a settlement, there might be early settlement fees.

mickdw

What would be the procedure when doing to finance company. Fair enough I hand over draft to them clearing all outstanding finance. Do they issue a title document to me? Is the reg cert in the owners name on cars that are bought this way?

No the seller has the cert so you pay the bank get receipt to say the balance is clear not that you paid the balance but that the finance is now clear, along with the receipt.

Fill out the cert and go with the seller to the post office, job done.

The more I think about it the more I thought how comfortable and relaxed I was doing a deal in a bank rather in someone's house fearing someone was going to clobber me on the head and take the money.

So I'd buy a car with outstanding finance again in a heartbeat.

mickdw

[Deleted User] wrote: »

No the seller has the cert so you pay the bank get receipt to say the balance is clear not that you paid the balance but that the finance is now clear, along with the receipt.

Fill out the cert and go with the seller to the post office, job done.

So in effect, you would be clearing the loan on someone's else's car while at that time having no guarantee that they will sell it to you.
Could the car owner not walk out of the bank with you, laugh in your face and tell you to f off.

mickdw

mickdw wrote: »

So in effect, you would be clearing the loan on someone's else's car while at that time having no guarantee that they will sell it to you.
Could the car owner not walk out of the bank with you, laugh in your face and tell you to f off.

I'm sure it's possible, but if I walk out with a signed receipt then no he can't .

TBH, If you don't have a receipt then anything is possible, but you'd hardly walk out of the bank without A, having the cert signed and B a receipt ?


If you didn't have a receipt then I'd say it's possible you could have an issue if the seller was that way inclined, you might have to go to court and in the meantime the seller if foreign could be long gone out of the country however I was very aware of all this as the chap was Polish.

You could always hand over cash for the sale of a car in someone's house then get clobbered over the head and robbed and then buried in the back garden.

You'd have a hard time convincing a judge that some stranger gladly paid off your loan and happily walked out the door. Especially with a screen shot of the car add !

Bpmull

I don't think vw bank will be as delighted with you selling the car as everyone on here makes out. They will most likely warn you not to sell it. As in their opinion it's great you selling it and all until someone gives you a dodgy bank draft which bounces when they get it. You don't have the car so they can't repossess it. I'm not trying to be pessimistic but chances are of you ring them they will tell you not to sell it as that happened to a person I know now maybe things have changed. Also people are going on about going into the bank and lodging the draft with the buyer. But it's vw bank they don't have branches they are only set up to loan money for vw group cars. So you would have to post the draft to them.

Now maybe they would be much happier with you going into vw group dealer and let them buy it back of you but there not going to be offering you top money for it. And if it's a standard vw car your selling I don't know what it is but say its a golf for example. The vast majority of people won't touch the car when they hear there is finance on it. Why would when they have the pick of plenty of the same car without finance. Maybe if it was 5k plus cheaper but considering you have 3 and half years of finance left on it your not going to be letting it go that cheap either.

Maybe I'm completly wrong and I hope I am for your sake and I hope you get it sorted. But there is no point in saying it's going to be handy out to sell it and that you'll have a que to buy it.

Bpmull

Bpmull wrote: »

I don't think vw bank will be as delighted with you selling the car as everyone on here makes out. They will most likely warn you not to sell it. As in their opinion it's great you selling it and all until someone gives you a dodgy bank draft which bounces when they get it. You don't have the car so they can't repossess it. I'm not trying to be pessimistic but chances are of you ring them they will tell you not to sell it as that happened to a person I know now maybe things have changed. Also people are going on about going into the bank and lodging the draft with the buyer. But it's vw bank they don't have branches they are only set up to loan money for vw group cars. So you would have to post the draft to them.

In the case of the VW Bank i don't know what would happen as I went BOI, however it could possibly be done that the dealer will do the deal on your behalf.

As regarding dodgy bank drafts, all you have to do is ring the bank and verify it's validity, afaik it can't be cancelled as it's basically cash.

You could always hand in dodgy notes either or receive them, you could think of a million ways for something to go wrong.

Bpmull wrote: »

Maybe I'm completly wrong and I hope I am for your sake and I hope you get it sorted. But there is no point in saying it's going to be handy out to sell it and that you'll have a que to buy it.

Yes its true that most people run when outstanding finance shows on the car check, but it doesn't have to be all the hull-a-baloo most people make it out to be either.

Bpmull

Deleted User wrote: »

Yes its true that most people run when outstanding finance shows on the car check, but it doesn't have to be all the hull-a-baloo most people make it out to be either.

Well at the end of the day unless the car is substantially cheaper than the going rate for that model spec of car then people won't bother. Plenty of the same car out there without finance. Iirc when you bought the Prius you mentioned before it was a good bargain hence why you went to the effort and cleared to loan with the buyer and it worked out perfectly and you got a good car for good money. But thinking logically about it why would you increase the hassle risk as a buyer of buying a car with finance unless there is a good financial saving to be made. It wouldn't make sense to do it other wise when the car isn't rare and there is plenty out there without finance on them.

Plus even if it didn't have finance irish people are slow to buy cars private that cost 16k euro or whatever. They would rather go to a dealer(main or independant) and In alot of cases it mighten cost a huge amount extra to buy of a dealer. Where as when buying a 5k or 7k euro or around that money there is big savings to be had buying private and people arnt as fearful buying private.

Op if you want to give details of the car mileage year spec people on here could give you a good idea of what it's worth and 16k euro may be a great price for in which case you may sell it reasonably easy. But it's impossible for us to tell without knowing anything about the car.

At the end of the day it was no bother to me at all, yes I got a great deal but it was a lot less stressful than other cars I bought the traditional way !