MK5 Golf GTI
General => Random Chat => Topic started by: JPC on June 03, 2010, 09:12:10 am
-
Hi guys, bit of a noob question, how do I go about selling my car with finance on it?
I will obviously be paying off the finance with the cash from the sale but how do I go about it?
Do I take a cheque for the sale price of the car, wait for it to clear then pay off the finance? What happens when a potential customer sees there is still finance owed on the hpi?
I assume this goes on all the time right?
-
Basically the car is not yours to sell, so you cant sell it with finance still owing on it, the best thing to do is to get the buyer to settle the finance, as a buyer though this sort of hassle would put me off
I am assuming the car was bought on HP, and its not a personal loan
-
Awesome! Not! Right so really I need to take two cheques from a buyer, if they're willing. Wait for lombard to give the green light then the car can go?
-
or just trade it in and get the garage to pay off the finance?
-
or just trade it in and get the garage to pay off the finance?
I'd be missing out on about 2.5k if I did that!
-
you might have difficulties with a buyer being happy to do that, can you get temporary access to some money 0% credit card, personal loan etc to pay off the finance prior to sale?
-
ok, i thought they offered you a good trade?
-
Awesome! Not! Right so really I need to take two cheques from a buyer, if they're willing. Wait for lombard to give the green light then the car can go?
Ideally dont take a cheque imo (too dodgy, or too long a wait), personally in your position i would get the buyer to pay for the financed part over the phone with a debit card to Lombard on the day of purchase (again not ideal and not many people would do this), this way the buyer knows its all settled and you know its paid off, then take cash for anything over and above the settlement price (an instant bank transfer is another good option)
To help before the sale get a quote for the settlement figure from Lombard (written copy to show the buyer)
-
Thanks for the help guys ;)
-
I paid off the previous owners finance on the phone when I picked the car up, then gave him the rest in cash - I didn't see it as an issue, but then I trusted the guy.
I can see your dilemma though, can someone front you some cash for a week or so?
-
have u sold the car or are you about to put it up for sale?
-
No not even put it up for sale yet but I will be doing soon
-
Jay, could you not get someone to lend you the money, pay the finance off then repay the loan once the car is sold? This will make the sale a bit easier IMO. :happy2:
-
None of my family have ever had any money! Haha!
-
Soooo you'll be parting with a few tasty parts??? Or selling it as it is?
-
Soooo you'll be parting with a few tasty parts??? Or selling it as it is?
look in the for sale section! :signLOL:
-
Soooo you'll be parting with a few tasty parts??? Or selling it as it is?
You might have missed the boat Cal :laugh:
-
Soooo you'll be parting with a few tasty parts??? Or selling it as it is?
You might have missed the boat Cal :laugh:
damn the bank holiday it's left me dazed and confused ever since I personally blame jimlad for making me miss out
-
When I first purchased my ED30, it had finance on it.
The person I purchased from was a private luxury car dealer, and the ED30 was his 'runaround'.
Anyways, he gave me the following option:
1. He would give me the finance details, and I could pay it off myself, then give him the remaining cash to make up the full amount.
2. I could pay a deposit of £2k. He then clears the finance and I get proof of cleared finance when I picked up the car and paid the remainder.
3. I gave him full amount, and he cleared finance via the phone on the spot in front of me, We then wait for the finance company to fax across proof of no further interest in the car, which I would keep as evidence.
I decided to go for the 3rd option. I gave him a draft for the full amount. He then rang the finance company in front of me and cleared the full amount. He then passed the phone across to me and the person on the phone confirmed the finance had ben cleared. We then waited for the fax, which came through a few mins later to say that finance had been cleared etc. I checked this to confirm it had the proper company markings etc. I then rang back the finance company via their internet customer service number, just to double check it was them!
Once happy, i took the keys, the guy gave me a full invoice/receipt, and I left with a smile!
I would go with the same scenario if I were you. Inform the buyer you will clear finance on the spot with him present, so he knows its been done.
-
I wouldn't worry so much, most new cars have finance on them, so this must be fairly common? As long as you're upfront with people about how the transaction will be done, then you're ok.
-
i sold my last car when it was on finance. the bloke gave me the money. i then phoned up and paid the finance off. didnt have any problems :)
-
I wouldn't worry so much, most new cars have finance on them, so this must be fairly common? As long as you're upfront with people about how the transaction will be done, then you're ok.
Seriously dodgy ground though... It's illegal, it's not your car, it belongs to the finance company from whom you are 'renting' the car.
-
Sorry, I meant using the example given where you settle the finance there and then with the new buyer.
Trusting someone to settle it afterwards I wouldn't touch with a bargepole.
-
Sorry, I meant using the example given where you settle the finance there and then with the new buyer.
Trusting someone to settle it afterwards I wouldn't touch with a bargepole.
Fairy nuff. Surely you can just take out a bridging loan?
-
When I first purchased my ED30, it had finance on it.
The person I purchased from was a private luxury car dealer, and the ED30 was his 'runaround'.
Anyways, he gave me the following option:
1. He would give me the finance details, and I could pay it off myself, then give him the remaining cash to make up the full amount.
2. I could pay a deposit of £2k. He then clears the finance and I get proof of cleared finance when I picked up the car and paid the remainder.
3. I gave him full amount, and he cleared finance via the phone on the spot in front of me, We then wait for the finance company to fax across proof of no further interest in the car, which I would keep as evidence.
I decided to go for the 3rd option. I gave him a draft for the full amount. He then rang the finance company in front of me and cleared the full amount. He then passed the phone across to me and the person on the phone confirmed the finance had ben cleared. We then waited for the fax, which came through a few mins later to say that finance had been cleared etc. I checked this to confirm it had the proper company markings etc. I then rang back the finance company via their internet customer service number, just to double check it was them!
Once happy, i took the keys, the guy gave me a full invoice/receipt, and I left with a smile!
I would go with the same scenario if I were you. Inform the buyer you will clear finance on the spot with him present, so he knows its been done.
Those 2 options get my thumbs up!
When i sold my car i had the customer settle the remaining finance themselves over the phone the finance company then faxed me a letter saying they had no further interest in the car i then photcopied it one for me and one for the customer, depending on the finance company they usually also send out a letter to you just to confirm the finance has been settled.
Buying a car with finance shouldnt really put anyone off these days as it is so easy to settle. Technically almost every car on a dealer forecourt is on finance anyway as the dealers have them on funding plans :wink:
-
The owner of the car I was buying got a settlement figure in writing just before I went for the car, I got a bankers draft for that amount. Having paid him the balance in cash, we went to the local post box and posted the finance settlement cheque off with a request for the receipt to be sent to me. That worked for us. :smiley:
-
Not read the whole thread but chucking my 2p worth in..
I have sold 2 with remaining finance on and just make the buyer aware. One bought the ED30 for 17k cash I then paid this in and then settled the balance...
Sold an Astra which the buyer paid directly to the finance company and the remainder to me...probably the best and most efficient way.
-
Or 2 bankers drafts, one for the settlement one for the balance. Simply take a walk around to the post box with a draft and the settlement letter in an envelope and send it to the finance company
-
i sold my last car when it was on finance. the bloke gave me the money. i then phoned up and paid the finance off. didnt have any problems :)
Exactly how I sold my last one too, the finance was paid off while he was with me. As long as you are up front with the buyer, then as long as they want your car and a genuine buyer then you shouldn't have a problem.
-
^^I personally wouldn't buy a car like this, although I have had someone do it with me, you never know if they actually will pay it off.
-
Or 2 bankers drafts, one for the settlement one for the balance. Simply take a walk around to the post box with a draft and the settlement letter in an envelope and send it to the finance company
On a side note Don't assume that a bankers draft is a safe way of taking money for a car, after all how many drafts do you see, how could you spot a real one ?, the only way I would take one is if I went to the bank with the buyer and physically see it done, other than this then you need to waitnfor it to be cleared funds in your bank account