Selling a car with outstanding finance

[Ja Salford Blue]

I started a thread on this a while ago but didnt really get any answers.

I need to start saving some money so I want to sell my car, It has got 3 of the 4 years left outstanding on the finance. I have spoke to the car finance company who have told me it will be about £6k to pay it off. the same car is currently selling in the Auto Trader for about £7k.

I want to sell it through Auto Trader and pay off the finance with the money recieved. Is the possible? would any potential buyers be willing to do this or is it illegal?

cheers

 

[oakiecokie]

The car does NOT belong to you,but the Finance Company,as i`ve always understood it.
You may have a log book but even that doesn`t cover you as the rightful owner.
You and the buyer could be on a sticky wicket,even if you sell it and pay it off asap.
Just be careful mate.

 

[The Flash]

The finance company may have a clause where there is an early repayment penalty, so you could sell the car and end up still owing them dosh.

As always, the devil is in the detail so read, then re-read, the small print on your finance agreement.

 

[Bellyeye]

I think it depends on the agreement. If its Hire Purchase then the vehicle belongs to the finance company until the balance is paid. You could only sell it with their agreement. If its just a loan for the car then the car is yours and you can sell it. They could only chase you for the money, but check your agreement.

 

[daveduke67]

An HPI will show that it has outstanding finance on it and that'll put many off.

I bought a car off a guy that had o/s lending attatched and, after speaking to the finance company on the phone, BACS transfered the money directly to the finance company. They emailed me back saying they'd received it and the finance was clear. I then gave him the extra in his hand and got a receipt from him.

If you find someone who'll do this make sure you get written proof from the lenders that they have had every penny and the car is clear of debt.

 

[Ancient Citizen]

Phone the finance company and get a settlement figure. Tell any prospective purchaser this figure and include it in your selling price, pay the finance company and inform the buyer that the car is now his. You keep the difference.

 

[inbetween]

Take proper advice mate or even just ring up the finance company and get their stance on it, it's not worth getting it wrong.