P_is_for_Paul

Ok, i have a Mini Cooper S on finance. I owe around £9000 still and the cars worth about £10,000. I have saw a car for sale privately which id like to buy and get rid of the Mini. Whats the best way around this. Am i better getting a loan from my bank, paying off the finance of £9000, selling the car for £x, then use the money from the car to buy the car privately?? Or can i sell the financed car then use the money gained to pay off the finance and then take a loan out to buy private car?? Im no good at these things!!!

lukemakepeace

im not 100% but if you sell the mini (privately) and say you get £9000 im sure you can pay the £9000 finance off and be cleared of it then you can go ahead and buy the other car you want.

XRdodgybird

The first suggestion you make will probably take too long and by the time you've done it the private sale car will have gone.

You could try the second option, however, its finding a buyer that will accept an undertaking from you stating that you will pay the finance off. Then you just need to arrange a loan/finance to buy the new car. I did this with an Astra I sold... when I got confirmation through from the finance company that the finance was paid off, I just forwarded the letter to the new owner.

I got rid of my ST through www.webuyanycar.com wasn't the best price in the world but at least it was quick, and it worked out that they gave me more for my car than the garage were willing to off p/x.

Nick D

Your not legally permitted to sell a car with finance outstanding on it. The outstanding amount must be settled, however if the car is coming from a dealer they may be able to arrange this for you and sort everything out so that the finance is transfered to the new vechile you want.

Just one thing, thats a very high amount percentage wise that you owe on that vechile. I'd think twice about having a car that is nearly all on finance that is just going to depreciate anyway. You could easily end up in negative equity. (only my opinion mate)

Nick.

Nick D

[quote="XRdodgybird"]its finding a buyer that will accept an undertaking from you stating that you will pay the finance off. Then you just need to arrange a loan/finance to buy the new car.quote]

Can't belive you found someone that was willing to do that!

It's late I obviously didn't read it properly about it being a private sale.

The car is still legally owned by the finance company until the last payment is made to them, so you cannot sell it on without it being clear staying within the law.

XRdodgybird

[quote="dunlop2008"]I did two copies of the undertaking - which are used by solicitors in this country every day.

It basically stated that I would pay off the finance on cleared funds being received for the vehicle. The document bore both our full names, addresses and details. He could have taken me to court on the strength of that document had I not cleared the finance.

I work for solicitors, and as far as I was concerned it was a legal document and binding... I would not have ripped him off, although I know some out there would.

Nick D

I was just stating that I would of thought it would be difficult to find a purchaser to agree to that, I was not having a go or calling you a liar.

However by selling the car with finance outstanding on it is still breaking the law as technically you didnt own the vechile the finance company did.

This is oneof the main reasons for HPI checks[/b]

XRdodgybird

Sorry, didn't mean to sound so defensive.... I was probably very lucky for finding someone to buy a car with outstanding finance. I declared it to him from the offset and it never put him off.. He was also getting a bargain, a £5k car for trade in price of £3,700, I only owed £1500 on it too so it wasn't a huge amount.

I am so glad I did find someone to do it, if I'd have been stuck with that Astra for much longer, I would have committed suicide!

P_is_for_Paul

Yeah i thought that i wouldnt be able to sell it privately until finance was cleared!! Just wanted to know the best way to go about it as ive seen a Focus RS and the insurance is only an extra £40 so would seem silly not to!!

Nick D

No problem, but with your username and selling cars that dont belong to you does set alarm bells off lol!!!!

Anyway its past 1am!

Night.

Nick D

I'd seriously think about trying to reduce the finance by buying a cheaper vechile for a while, or start paying it back at a very quick rate so that you do have some decent equity in the vechile.

P_is_for_Paul

XRdodgybird, i tried this webuyanycar place and theyve offered me £9750 which is actually not bad! What are they like to deal with?

XRdodgybird

They were fine... they actually buy in cars for places like carcraft... if you decide to go ahead with the sale of your car to them and use the link it will give you the nearest garage that you can take your car to to sell it... you make an appointment online to go to that garage and they send you a list of all the docs to take..

Providing they find nothing wrong with your car they will give you the price quoted.

Its all very simple. I took my car in on the Saturday morning and had cleared funds in my account on the Wednesday morning...

Good luck!

P_is_for_Paul

Traded my car in, cleared my finance and bought a corsa

But at least ill save £300ish a month so just gonna save a bit up for a year then buy somethin nice

Nick D

It may not seem it at the moment but a very wise move!

Mr S1

iTrader: (2)

I work for a finance company and this is absolutely correct. No finance company will allow their asset to be sold, although if on HP they may permit you to sell the car on their behalf but they certainly won't release title to the purchaser until they have been clared off. Easiet way may be if you have someon interested to get a settlement figure from the finance company and get the purchaser to settle direct. That way the finance company are cleared and the purchser knows they are getting good title to the asset. Any excess over and above the settlement figure the finance company will then return to you.

P_is_for_Paul

Thats what im thinkin. And i used to drive a corsa, they aint that bad. And hey its an Sxi+ with half leather so its not as if im drivin a shitter for a year