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Buying a car with finance and re-selling before term is finished

  • 19-06-2021 1:43pm
    #1
    Posts: 0 ✭✭✭ Kolten Quick Underwear


    Is it difficult to sell on a car that was bought on finance before the term of the finance finishes? Say for example if you were emigrating.


Comments

  • Registered Users Posts: 73,798 ✭✭✭✭ Atlantic Dawn


    No, basically you need to contact the finance provider first and get the settlement amount outstanding, then when selling the car you make purchaser aware of finance outstanding and get them to make a draft payable for that amount to the finance provider and the remainder to you.


  • Registered Users Posts: 2,982 ✭✭✭ User1998


    A lot of people will see there is still finance on the car and won’t proceed with the purchase


  • Posts: 0 ✭✭✭ Kolten Quick Underwear


    User1998 wrote: »
    A lot of people will see there is still finance on the car and won’t proceed with the purchase

    so you might have to sell it for a lot less than what its worth?

    Im just asking because there is a chance we could be moving abroad next year and thought we may need a new car. The choices were to buy something older, outright for cash... say €3500 - €4000, or to get something newer through finance and sell it on in a year.


  • Registered Users Posts: 21,119 ✭✭✭✭ Squidgy Black


    so you might have to sell it for a lot less than what its worth?

    Im just asking because there is a chance we could be moving abroad next year and thought we may need a new car. The choices were to buy something older, outright for cash... say €3500 - €4000, or to get something newer through finance and sell it on in a year.

    In that case you'd be mad not to buy something cheap with tax and NCT and drive it for a year and then sell it on vs having to deal with the whole finance scenario.


  • Registered Users Posts: 50,137 ✭✭✭✭ bazz26


    so you might have to sell it for a lot less than what its worth?

    Im just asking because there is a chance we could be moving abroad next year and thought we may need a new car. The choices were to buy something older, outright for cash... say €3500 - €4000, or to get something newer through finance and sell it on in a year.

    No, what User1998 is saying is that many people run history checks on cars before actually contacting the buyer about it. If the history check flags the car as having outstanding finance then many people just move onto the next one as they don't want the hassle. It won't matter how cheaper the car is. Any person that does make contact with you regarding the car you should be up front and tell them that you would be using the proceeds of the sale to settle the finance on it as technically the car belongs to the finance company until the final payment is made.

    Also if thinking of moving abroad next year then it makes little sense to go out and finance a new car for just 1 year. Either keep paying your current car for another year and then sell it or sell it now and buy a €500 banger to tie you over.


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  • Registered Users Posts: 1,174 ✭✭✭ mcburns07


    Buying and selling within a year is going to cost you a lot in depreciation, but if you really want to you could always take out a loan for the outstanding amount before selling and clear the finance on the car... then clear that loan with proceeds from the sale.


  • Registered Users Posts: 30,666 ✭✭✭✭ listermint


    Serious plans for emigrating and buying a new car on finance or even a new car for just the period of time in cash is absolute madness. Throwing money away.


  • Registered Users Posts: 50,137 ✭✭✭✭ bazz26


    I'm going to guess here that the OP might be in the middle of a PCP deal and obviously doesn't want to hand the car back or pay the GMFV/balloon payment at the end of the PCP term. If that is the case then maybe talk to the dealer you bought it from originally and see if they would be interested in buying it off you and see what figure they offer you for it. Dealers are finding it harder to source used stock now so the offer may be decent especially if it's a popular car. Obviously selling it privately might get you more money but with the outstanding finance bit it might prove more difficult and take longer whereas with a dealer they will clear the finance and write you a cheque for the balance.


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