liamC
Member
Registered: 28th Feb 04
User status: Offline
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Does this mean I can only sell the car back to the place I got it from?
Or could I sell it on and then pay them the money which I owe from the sale of the car?
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liamC
Member
Registered: 28th Feb 04
User status: Offline
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Also, APR will go down if I paid the remaining money which I owed them straight off wouldnt it?
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Ally
Member
Registered: 2nd Jul 03
Location: Pontypool Drives: a Skoda
User status: Offline
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You sell the car, pay it off with money you get from selling the car then if theres any left to pay, you carry on with your monthly instalments obviously at a lower rate
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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Phone the finance company first, get a settlement, ask them if that figure includes discount for early settlement (ie. the portion of interest which you're not using because you're stopping the borrowing), then work out how much the car is worth and compare the two.
Legally you should settle the finance before selling it but most garages will do that for you before doing the actual change of ownership.
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liamC
Member
Registered: 28th Feb 04
User status: Offline
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Ian, what do you mean by a settlement? Like how much the APR will go down by if I pay all of the remaining off in one go?
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Ally
Member
Registered: 2nd Jul 03
Location: Pontypool Drives: a Skoda
User status: Offline
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How much it would cost to pay off whatevers outstanding for the car
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Colin
Member
Registered: 4th Apr 02
User status: Offline
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As long as the new user knows theres finance outstanding which you intend to pay using cash from the sale there is nothing illegal about selling.
Settlement is paying the outstanding balance in 1 payment and will be less than continuing payment.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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Yes, as above, settlement is the amount of money required to, well, settle!
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ainsley_brader
Member
Registered: 24th Mar 02
Location: Tattershall, Lincolnshire
User status: Offline
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Strictly speaking the car isnt yours to sell but realistically so long as you pay the finance off its not a problem.
TBH If you told me your car was on finance but you were going to pay it off with the money i'd walk away. My corsa was on finance when i bought it, so I got a settlement figure and paid there finance off then gave her about £50 cash lol
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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You can also walk away from finance if you've paid more than half. Depends how much deposit you put down etc. but sometimes the car is worth less than you owe and this clause is useful.
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ainsley_brader
Member
Registered: 24th Mar 02
Location: Tattershall, Lincolnshire
User status: Offline
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quote:
Originally posted by Ian
You can also walk away from finance if you've paid more than half. Depends how much deposit you put down etc. but sometimes the car is worth less than you owe and this clause is useful.
You just give them the car back!
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ed
Member
Registered: 10th Sep 03
User status: Offline
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Yea, my old man decided that his old Audi was getting too expensive as he was paying more than it was worth, canceled the direct debit and some people came to pick it up a few weeks later... Was funny watching them - they were like the chuckle brothers 
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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If its repossessed you're still liable for the outstanding equity and you get a bad record. You must have paid more than half of what you borrowed.
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Martin CUK
Member
Registered: 19th Jun 03
Location: Bury
User status: Offline
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It's called 'Voluntary Termination', and comes under Sales of Goods Act. 
If you've paid 50% or more of the value of the goods, then you can return the goods to the lender as long as you've taken 'reasonable care' of them. This usually means an independent inspection by the RAC etc.
I did it with my 106 GTi a couple of months back, inspection is nothing major, then they take your car away and auction it to claim back what they are owed.
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Ian
Site Administrator
Registered: 28th Aug 99
Location: Liverpool
User status: Offline
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I've done it and they didn't inspect.
Useful though. Damn Choices 123 crap 
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Ojc
Member
Registered: 14th Nov 00
Location: Reading: Drives : Clio 197
User status: Offline
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How about getting a loan paying the finance off then selling the car?
Loans are cheaper than car finance.
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BigSte
Member
Registered: 27th Aug 02
Location: Sheffield
User status: Offline
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I doubt anybody will buy a car which still has finance outstanding on it.
When I went to view mine the guy owed about 2500 still on finance, I told him I wanted it and will come and collect next week, on the understanding that he paid off the finance.
When I got there to collect it he had paid off the finance and got a faxed confirmation that there was no outstanding finance on it, so I bought it
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