Selling a car with finance

S

somewhere

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I am going to have to sell my car as it is a stipulation for mortgage approval that I reduce my outgoings - by downgrading.

I am in a position to reduce the settlement on the car but not the whole amount, possibly having some equity in the car itself.

If I obtain a settlement figure from the finance company would it be unfair for a potential buyer to make payment to the finance company, thereafter clearing all the remaining finance and leaving the car HPI clear instead of me?

In an ideal world I would of course like to sell the car clear of finance but this isn't possible due to the amount outstanding.

I have never actually sold a car before (always trading in) so I wondered what peoples thoughts on this practice are? would this be acceptable if done in an honest and genuine way providing full details to a potential buyer, appreciated that there needs to be trust between both myself and the buyer, obviously more from the buyer.

Unfortunately the outstanding amount is €40k and the car is valued somewhere between €38k and €43k and obtaining an unsecured loan to clear the full amount isn't possible.

Any comments or thoughts would be very welcome
 
Try its free for private sellers but beware that users can use the same site to check for outstanding finance on the car so it would be best to disclose details of the situation in the ad.

somewhere said:
I am going to have to sell my car as it is a stipulation for mortgage approval that I reduce my outgoings - by downgrading.

I am in a position to reduce the settlement on the car but not the whole amount, possibly having some equity in the car itself.

If I obtain a settlement figure from the finance company would it be unfair for a potential buyer to make payment to the finance company, thereafter clearing all the remaining finance and leaving the car HPI clear instead of me?

In an ideal world I would of course like to sell the car clear of finance but this isn't possible due to the amount outstanding.

I have never actually sold a car before (always trading in) so I wondered what peoples thoughts on this practice are? would this be acceptable if done in an honest and genuine way providing full details to a potential buyer, appreciated that there needs to be trust between both myself and the buyer, obviously more from the buyer.

Unfortunately the outstanding amount is €40k and the car is valued somewhere between €38k and €43k and obtaining an unsecured loan to clear the full amount isn't possible.

Any comments or thoughts would be very welcome
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My understanding in finance agreements is you don't actually own the car so its not yours to sell.

From a seller's perspective what is preventing you from selling the car privately and then not clearing the fianance, meaning that the seller never really owns it.

You'll have a very hard time selling a 40K car privately anyway. As you say yourself you have always dealt with dealers so it would be unusual for someone to part with so much money in a private sale.

If the car is a popular model your best bet is to go to the dealer and try to do a deal to trade down and he'll sort out the finance. But with the dealer's margin the finance outstanding might be more than he's willing to offer.

Any buyer spending so much will use services such as cartell.ie and HPI ireland can easily check for outstanding finance.
 
Like fago said if you have a Hire Purchase agreement on the car you do not own it until the last payment has been made. Therefore you do not own the car to sell it. You must clear the full outstanding finance amount in order to sell the car.

If you make an agreement for the potential buyer to make payments the finance is still in your name and there is nothing stopping him from not making payments leaving the account in arrears and you with a bad ICB record.

Are you planning on buying another car?
 
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