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Cars with outstanding finance: buying and selling guide

The majority of new cars sold in the UK are bought with some kind of finance package, and a significant proportion of sales in the used car market are also financed. In most cases, car buyers wait until their finance contract expires before looking for a new contract on another car, but you can also sell a car with outstanding finance. Here's how.

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Cars with outstanding finance: buying and selling guide

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  1. Cars with outstanding finance: buying and selling guide

  2. The majority of new cars sold in the UK are bought with some kind of finance package, and a significant proportion of sales in the used car market are also financed. In most cases, car buyers wait until their finance contract expires before looking for a new contract on another car, but you can also sell a car with outstanding finance. Here's how.

  3. The majority of new cars sold in the UK are bought with some kind of finance package, and a significant proportion of sales in the used car market are also financed. In most cases, car buyers wait until their finance contract expires before looking for a new contract on another car, but you can also sell a car with outstanding finance. Here's how.

  4. Whether or not you can sell a car with outstanding financing depends on the type of financing you have in place for the car. Generally, if you are the legal owner of the car under the terms of the financing agreement, you can sell it. If you are not the legal owner, you cannot sell it. You can either agree with the lender that you will pay off the contract and sell the car, or there is a voluntary termination clause that allows you to end the contract early. Do not buy a car with outstanding finance because even though you paid for the car, it doesn’t now officially belong to you. • The three main types of car finance in the UK are Personal Contract Purchase (PCP), Hire Purchase (HP) and Personal Contract Hire (PCH), also known as leasing. Let's go through the three types of financing one by one and determine if you can sell a car with this type of financing.

  5. Can I sell a car with PCP financing outstanding? • PCP financing consists of a down payment and monthly installments. At the end of the contract, the buyer either pays a lump sum (the final installment) to take full ownership of the car or returns it to the dealer. • If you want to sell a car with outstanding PCP financing, you must first pay off the contract. To do this, you require the finance provider to pay you a settlement fee, which is made up of all outstanding monthly payments and the final installment. Once you make this payment, you can sell the car.

  6. Can I sell a car with outstanding HP financing? • Car financing through hire-purchase requires a down payment, followed by a series of monthly payments. As with PCP contracts, you can sell a car with outstanding HP financing by paying off the balance of the contract. Ask your lender to calculate the settlement fee, and once it's paid, your vehicle can be sold.

  7. Can I sell a car with outstanding PCH financing? • PCH financing, also known as leasing, is basically a long-term car rental agreement. You rent the car for a set period of time with a series of monthly payments and then return it. You don't have the option to buy the car, and you never own it with PCH financing, meaning you can't sell the car at any point in the contract.

  8. Can I sell a car with an outstanding personal loan? • Unlike the other types of car financing described above, with a personal loan you can sell the car before you pay off the financing contract. This is because you are the legal owner of the car once you buy it with the money lent to you by the lender, and the loan is not secured by the car. Of course, even after you sell the car, you will still have to pay the agreed installments.

  9. What happens if you buy a car with outstanding financing? • As we have seen, there are several ways to legally sell a car if you still have to repay financing, but to do so, the financing must be settled with the lender in some way. You can't sell a car until the financing you took out on the car is paid off in full. Of course, that doesn't stop unscrupulous people from selling cars whose financing hasn't been paid off, and as a car buyer, you need to be careful.

  10. About Us • Full Car Checks provides everything from the free and standard checks. When you need the confidence to make your next car-buying decision, opt for our full car history check which is the most comprehensive report and comes with £30,000 data guarantee. • Website - https://fullcarchecks.co.uk/

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