pcp

[dap17900]

I have a car PCP baloon payment scheme with �13,100 left outstanding, due to the credit crunch I would like to get rid of the car, Am I allowed to sale it privately and pay off the finance? if anyone knows that would be great..

regards

[moomintroll1]

Yes. Contact the finance company and obtain a settlement figure.

You should pay this over to them immediately upon selling the vehicle.

Technically, you should pay it before selling the vehicle, since it isn't yours to sell until then, but this is impractical in the majority of circumstances, and no finance company will complain as long as full settlement is forwarded without delay.

[Oneeyedvic]

If you want to sell the car, then you need to make the buyer aware that the car is on finance.

Usually, the buyer will then arrange to pay the finance company the amount owed and yourself any extra amount (so if the car is sold for �14,000, the purchased will pay the �13,100 to the finance comapny and �900 to you).

If the car is not worth �13,100, (lets say its worth �12,000) then the buyer should ask for you to pay the difference in finance (�1,100) and then pay the finance company the �12,000.

[Oneeyedvic]

I disagre with Moomintroll's answer - there is a term used in these case: nemo dat quod non habet - you can't sell what you do not own.

The finance company own the vehicle and will not pass title to the vehicle until it is paid for.

Therefore you can't sell the vehicle as you do not own it.

Therefore a buyer would be rather stupid to give you the money (as if you didn't pay the finance company he would have no title to the vehicle).

Use my example above and everyone is happy.

[factor-fiction]

If the buyer does an HPI check he'll see that the finance Company has an interest in it and would be advised to pull out of the purchase unless he wants to sort out payment with the finance company as Oneeyedvic suggests.

[dap17900]

Many thanks for all your posts its very helpfull!!

[Skyline D]

Moomintroll's answer, as he/she acknowledges, isn't actually legal and whilst it would no doubt work out in the majority of instances if the buyer was stupid enough to go through with it, it's not the way things should be done.