Selling A Car with finance

ZENER

I'm selling my car (Alfa 147 1.6) which is still under finance. Is there a procedure that sellers/buyers go through in these circumstances. I know there are various options to clear the debt on the car prior to selling but if I didn't do this what is the norm.

I've heard that the seller and buyer go to the finance company and hand over the draft etc but has anyone actually done this here ?

What about the buyer taking over the repayments, how does this work ?

Any advice please

ZEN

Nuttzz

ZENER wrote:

What about the buyer taking over the repayments, how does this work ?

I doesnt really, my friends mother was guarantor of his car loan when he bought his first car, he sold it to his brother and he could take over the payments on it as the guarantor was the same

you must pay off the loan before the new owner can register it AFAIK

Kinetic^

You should really pay off the loan before selling on in case you can't pay it later. If you don't tell the other person they could run a credit check and then not decide to buy it from you. I've had the experience of handing over the repayments before so i can't help you on that one. Legally you can't sell it if there is finance outstanding on it anyway.

Silvera

When I was looking for a car a couple of months ago, I found out that a '00 Astra I was about to buy had finance owing on it (I ran a finance check, €15). Suffice to say I didn't buy it !

If at all possible, clear the finance first - simplest solution.

bazz26

ZENER wrote:

I'm selling my car (Alfa 147 1.6) which is still under finance. Is there a procedure that sellers/buyers go through in these circumstances. I know there are various options to clear the debt on the car prior to selling but if I didn't do this what is the norm.

I've heard that the seller and buyer go to the finance company and hand over the draft etc but has anyone actually done this here ?

What about the buyer taking over the repayments, how does this work ?

Any advice please

ZEN

The buyer cannot take over the repayments as the hire purchase contract is between you and the finance company not a potential buyer. Read the small print of the terms and conditions that came with your HP contract.

It might be worth considering this:

Say you agree a price with the buyer for €15k and you still owe €5k to the finance company. Ring the finance company and tell them you want to settle the contract early, they will tell you drop into them and give them a draft for the outstanding balance. Tell the buyer to make out two drafts, one for €10k to yourself and one made out for €5k to the finance company. Bring the buyer with you when you are paying off the finance company and sign a document from the finance company stating the HP is paid in full and the contract is complete.

Of if you can pay the finance off yourself before selling then all the better. Not telling the buyer will only result in being asked some embarressing questions and no sale. Most people these days get a HPI check as it only costs around €15.

Also as far as I know legally the car is still the property of the Finance Company until the last payment is made irrespective of who's name is on the registration cert.

ZENER

Thanks for the replies. I have absolutely no intention of trying to deceive anyone and I'd make it know up front that there is finance on it.

I'd heard about the 2 draft thing and that's what I was interested in hearing. I was thinking of getting a personal loan - paying off the finance and then the loan once the car was sold, probably the best and safest option. There is of course the chance I could get done with a fake draft too.

Thanks again !

ZEN

HashSlinging

Once a third of the car is paid then you are the rightfull owner. However you still cannot sell the car with finance. Bazz seems to have it right with that suggestion.