With over branches across the UK, the average drive time to your local branch is less than 15 minutes. As you are selling a car with outstanding finance, you will need to bring an up-to-date settlement letter from your finance company which includes:. At your appointment you will be greeted by a friendly Branch Manager who will inspect your vehicle to ensure the details entered online are correct.
Where our valuation is higher than the settlement amount, we will pay you the difference. If our valuation is lower than the settlement amount, you will need to pay the shortfall by Debit or Credit Card. Once the sale is confirmed, we will pay your finance company within 4 working days.
The lender is the legal owner of a car bought on Hire Purchase until all payments have been made. In order to sell the car, you will need to end the agreement early by getting a settlement quote. To get a settlement figure, you will need to contact the finance company asking for one.
You should receive a settlement figure within a few working days from the finance company, and will then have a set period to pay the amount stated. Once this figure has been paid, the vehicle can be sold. If you have paid less than half of the total amount owed on your agreement, you could return the car to the finance company by paying the remaining instalments needed to bring yourself up to half of the remaining value; this includes any interest and fees.
You can read more about this in our guide on cancelling your car finance early. If you want to sell the car midway through your PCP agreement you will need to pay off the agreement early, which may be worth doing if the settlement figure is lower than the value of the car. Until this is done it does not belong to you.
It may be possible to arrange to pay the outstanding balance of the loan in instalments. Also bear in mind that you should keep your insurance policy updated as it is affected by hire purchase agreements. Private buyers are always advised to do a history check, but not all do so. When a hire purchase agreement is taken out, the finance company will automatically register it on the HPI and Experian databases.
If you sell an automobile with outstanding finance on it without informing the buyer of the situation, it is likely that the finance company will track them down to repossess it. It is your responsibility as a seller to repay the finance and to act in accordance with the law, and ignorance is no excuse in these circumstances.
If you are looking for a quote on a motor trade insurance policy, you could save up to It is possible that the buyer will be allowed to keep the car, if they bought it from you in good faith, and in the motor trade this is known as having good title. It is therefore far preferable to missing payments. Sell your car Get offers from multiple dealers. Sell your car. Can I sell a financed car?
Everything you need to know August 24, by John Tallodi. Sell your car with carwow. Compare cars using carwow Compare cars using carwow. View offers from local and national dealers.
Buy with confidence on carwow. Select a car. Like this article? Share it with others! Related articles. What is a mild hybrid MHEV car? What is GAP insurance and why do you need it? What is a V5C? The retailer will generally deal with this transaction on your behalf — although your current finance company may need your permission to liaise with them.
It can sometimes be difficult to part exchange a car with negative equity and whether or not you can depends on the difference between settlement figure and value, and sometimes, whether you can provide a lump sum to help reduce this difference.
If your circumstances have changed and you cannot settle your current finance to either sell or upgrade your car, then it can be worth exploring handing a car back to the finance company. When your car is repossessed, it will be sold — paying off all or some of the settlement figure. Voluntary surrender of your car can lead to serious financial repercussions and can severely damage your credit rating.
When you have this information, you can decide which next step is going to suit you, your motoring requirements and your finances moving forward. Enter a few details to sign up to the latest automotive news from Car. Share this guide: Twitter Facebook Email.
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