Selling A Finance Car?!?

A question about : Selling A Finance Car?!?

Hi All,

A bit of advice needed please. I took out finance on a car around 6 months ago. (With MotoNovo). I have around Ј10,900 left to pay.

I think I could get around Ј8000 for the car. I would like to outright buy an older less expensive car so as to not have the debt hanging over my head and then pay off the rest of the finance with the money I get from selling.

Is this something I can legally do? And then perhaps give the person I am selling the car to something in writing the state I am liable to pay off the outstanding finance?

I am not very knowledgeable at all on money related things concerning cars. I really want this car and debt gone .

I know different companies will probably have different rules on this but I am just wondering if this will be at all possible?

My credit used to be pretty good but since getting this car annoyingly it has gone down so getting a loan or credit card in order to pay off is not even an option.

Selling and paying off seems the easiest way to go about it but often with these companies the simple option never seems to be available.

Any advice greatly appreciated even if just to say this is a stupid idea lol.

Thanks x

Best answers:

• What type of finance is it, what does it say at the top of the finance agreement ?
• I'm not at home to dig out the policy but I believe it would be Hire Purchase? Or is that not right?
• If on HP the car is not yours to sell. You need to ask the finance company for a settlement figure and pay off the whole amount at the time of the sale, you can not make a part payment and continue to pay the finance. If however the agreement is a "Fixed Sum Loan" then you can do whatever you wish as the car and the loan are not linked.
• If the car is hire purchase, you would need to voluntarily terminate the agreement. You can ask them for written permission to allow you to sell the car, but that's not guaranteed. Any shortfall would obviously need to be paid off, but that becomes an unsecured debt once you surrender the car back to them.
  Best thing to do would be to call them and get some more info. Different finance companies work differently.
• The maths doesn't add up, you would still owe the finance co money.
  Ј8000 for selling the car
  - say Ј3k for a new used car
  Ј5000 remaining. Pay that off finance. Ј5900 left to pay.
  Just thought you might want to look at the numbers before you even get into whether it's legal or not.
• I bought a car once that was on finance, but i didn't know anything about the loan until the finance company got intouch with me to say they wanted either the money or 'their' car back again. What made it worse was i bought it off a guy i'd worked with, although he had since left.
  Told them i knew nothing of the loan and i'd contact the bloke i bought off. He asked me to tell them there'd been a mistake and i was suppose to finish the payments, so if i did this he'd come to see me each week with the money.
  I got back to the finance company telling them what he said and although i didn't know about the loan if he came with cash each week i'd send it on to them.
  Well surprise surprise, i never saw my 'friend' again or any money, but i was very lucky that the finance company accepted what i told them and didn't take the car away.
• How can you pay off a Ј10,900 balance, with Ј8,000, let alone buy another car as well