help

[Speedy1979]

I recently bought a car on finance the repayments are fine i can afford them no problems, my problem is i had an accident in it the other day no damage to my car asive had it checked out but i can't get my head round driving it again, its way to big for me & a friend of mine told me to sell it & get a smaller car, i was just wondering if i would be able to sell still keep up the repayments on it & buy a smaller car?

[lynneuk74]

If you plan to trade it into a garage, the dealer would settle the finance on the old car and then offer you finance on a smaller car. This would take into account any discrepancy in figures over value of new car and settlement figure on old car.

I work in a motor dealership, but in an accounts/admin role, so know something about it but not as much as a FSA trained advisor - the only people who are allowed to talk about car financing now by law.

I don't think you'd be able to sell it privately as it officially doesn't belong to you fully until you finish paying for it.

The best thing is to get in touch with the finance company and ask them the implications of changing car.

[scoobybob]

If you got your finance independantly, i.e. from a bank, then you can do what you like with the car.

Check your copy of the agreement form - the answer should be in the small print...

[bloodycheap]

I believe it is classed as fraud when you sell a car that is still being financed by a finance company. It is legally still their car until you have paid it off completely or so I was once told anyway. Contact the garage and be honest and see if they can help with the situation.

[lynneuk74]

Scoobybob - a bank loan isn't classed as 'finance'. Well, not generally anyway - although I guess Speedy could be using the word 'finance' to describe a bank loan.

If it has been financed by a FSA regulated finance company you can't just sell it - bloodycheap is right.

As I said, get in touch with the finance company (or the garage you got it from) and talk it through.

We had one guy do the same with us - his reason for selling was that it wouldn't fit in his garage. You'd think he'd check that out before buying a Merc wouldn't you!!!!

We have a specially trained Business Manager who deals purely with Finance and Warranties. I think all car dealerships have to have such a person now as the industry has been regulated.

You'll be absolutely fine - just explain the situation and see what they can do.

[Oneeyedvic]

Sorry just to correct a few answers here:

lynneuk's first paragraph is absolutely correct, however:

1. You do not have to be FSA regulated to sell finance for motor vehicles.


2. You do have to be FSA registered to sell insurance


3. If the car is financed by Hire Purchase or COnditional Sale, then the car will be on the Hire Purchase Interest (HPI) register. If it is finance by way of loan, credit card etc it will not be on HPI


4. It is worthy of note that Black Horse who finance a lot of vehicles from dealers should not put there agreements on Hire Purchase.

Your options are:

If it is a HP/Conditional Sale agreement:

1. Go to a garage and explain the situation - they should be able to downgrade you (though you may lose some money due to settlement - no longer rules of 78's but not a lot better)


2. Sell the vehicle privately but explain to the person buying it that there is finance on the vehciel. Let him give the finance outstanding to the finance company direct and any extra to you (or you will have to pay any shortfall) - you can then start aggain and buy a small car and fiance it again.

Hope this helps

[lynneuk74]

Thanks oneeyedvic.

As I said, just work for a garage so only have slight knowledge.

We've just been told that whenever someone mentions the words finance or insurance or extended warranty to get someone FSA regulated - that's probably just to cover the company's back so that the salesman doesn't offer some ridiculous deal just to sell a car.

Also, probably to give the FSA regulated business manager - who generally sits around filing her nails and doing her make up - something to do!!!!

[Oneeyedvic]

No worries - FSA regulations were brought in to protect the consumer. Whilst there are good aspects to it, it is another case of bad legislation.

As an example, whilst I arrange finance for vehciles in my job as a broker, I cannot tell them about a product called GAP 9or RTI which is similar). This insurance product costs around �100 - �150 for 3 years, and in the event of an accident will cover the consumer for an amount of up to �5000 in case his insurance pay our is lower than the finance outstanding (quite a common event).

We (as a company will not go FSA registered - it costs far too much and ther is too much paperwork) - this means that the consumer loses out.

Also, not sure if the double glazing mess ever got sorted out - to be FENSA registered (which every decent dg company has to be), you need to provide an insurance backed warranty. SInce you are 'selling' the consumer an insurance product, every dg company should go FSA registered.