Selling with finance

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Fri 30 Apr 2004 10:18
Selling with finance - Birney29
Im currently trying to sell my MX5. However, i hve finance outstanding on it. If people ask ill have to explain that im using the proceeds of the sale to pay of the finance. is this standard/accepted practice or is it up to me to get a loan and pay the finance off before the sale? Have any of you experianced this before?

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Fri 30 Apr 2004 10:22
Selling with finance - DavidHM
It is acceptable practice, assuming that you take the funds for the finance company in the form of a direct cheque.

If possible, I'd get a loan so that the car can be sold HPI clear and the buyer doesn't have to wait for confirmation from the finance company that the finance is discharged before collecting the car. They may be worried of course that you actually owe more than the amount of the cheque you're asking them to write and thus walk away.

Discharging the loan, if at all possible, will make the car much easier to sell - so you will probably get a better price and/or pay less interest (i.e., over a shorter time) on the outstanding balance.

How much finance are we talking about, and how much is the car? Are you sure it's actually finance and not a personal loan with no lien over the car whatsoever?
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Fri 30 Apr 2004 10:26
Selling with finance - Birney29
You mean the buyer writes a check to the finance company? i was considering (when i find a buyer) of going to the bank, getting the money put in my account then phoning the finance company there and then to pay it off. The car is going for 7k, and ive got about 6k left on it
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Fri 30 Apr 2004 11:26
Selling with finance - DavidHM
It's a bit of a risk for the buyer though, isn't it, handing the cash over and then potentially being left with a car, £6k owing on finance, and no cash.

I'm not saying that you'd do a runner but asking someone to bet £6k that you won't is expecting a bit of a show of faith.

If you can borrow money, e.g., on your mortgage or even a credit card to clear it, you'll probably shift the car a lot sooner.
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Sat 1 May 2004 16:02
Selling with finance - martint123
My brother part-ex'd his car (with finance) to a dealer for a new car. Six months down the line the finance company are after him as the dealer didn't pay off the finance.
(Doesn't make him feel any better that dealer is doing four years now).

I wouldn't touch a car with finance on it and I doubt most private buyers would be very happy. There are too many other cars around without the additional hassle.

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