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    is it illegal to sell a car with outstanding finance?

    Is it against the law to sell a car with outstanding finance on it?

    If not, what would happen in this example?

    Thanks.

    36 Comments

    Doesnt it say on the finance agreement? in the T&C's?

    Depends on the finance company I think? I know some allow it...BMW/Honda etc

    Original Poster

    xsazzyjayx;7674084

    Depends on the finance company I think? I know some allow it...BMW/Honda … Depends on the finance company I think? I know some allow it...BMW/Honda etc



    Hire company is black horse.

    As Long You Have Paid The Outstandeing Bill Asap You Will Be Ok

    Not illegal to sell but you would need to settle the debt.
    If your buyer does a HPI check it will show up as having outstanding credit on it.

    Original Poster

    DKLS;7674112

    Not illegal to sell but you would need to settle the debt.If your buyer … Not illegal to sell but you would need to settle the debt.If your buyer does a HPI check it will show up as having outstanding credit on it.



    If the debt is not settled, can you still sell a car thats on hpi; as long as buyer agrees to this? and ofcourse seller keeps paying the loan?

    What happends if u use the money u sell your car for to pay of the dept?

    Banned

    ele-font;7674178

    If the debt is not settled, can you still sell a car thats on hpi; as … If the debt is not settled, can you still sell a car thats on hpi; as long as buyer agrees to this? and ofcourse seller keeps paying the loan?


    what buyer in their right mind would buy a car with outstanding debt? The HP company could reclaim the car! :w00t:

    ele-font;7674178

    If the debt is not settled, can you still sell a car thats on hpi; as … If the debt is not settled, can you still sell a car thats on hpi; as long as buyer agrees to this? and ofcourse seller keeps paying the loan?



    You'd need someone extremely stupid to agree to that. Why won't you settle the loan when you sell the car?

    It would depend on the agreement. If it is a standard Hire Purchase agreement the hirer has no right to sell the vehicle without the loan companys agreement. You would then need to pay the loan company direct as they are the owners of the vehicle and they would be able to give you good title. If you do buy the vehicle knowing that it has finance on it, you would become liable. Best thing to do would be to contact the loan company direct and see if they will give you good title in the vehicle if you buy it from them.

    Original Poster

    csiman;7674187

    what buyer in their right mind would buy a car with outstanding debt? The … what buyer in their right mind would buy a car with outstanding debt? The HP company could reclaim the car! :w00t:



    but i assumed the loan was against the seller, not the car? :thinking:

    csiman;7674187

    what buyer in their right mind would buy a car with outstanding debt? The … what buyer in their right mind would buy a car with outstanding debt? The HP company could reclaim the car! :w00t:



    this,also the car actually belongs to the finance company and not you until the debt is settled

    this is a very dodgy thing to do

    Banned

    ele-font;7674238

    but i assumed the loan was against the seller, not the car? :thinking:



    LOL.

    Original Poster

    Syzable;7674233

    You'd need someone extremely stupid to agree to that. Why won't you … You'd need someone extremely stupid to agree to that. Why won't you settle the loan when you sell the car?



    the outstanding loan is £5000 and the car value is maybe £3000

    the loan is with the car as far as i know

    ele-font;7674254

    the outstanding loan is £5000 and the car value is maybe £3000



    Negative equity on a car!!!!

    I am afraid you are screwed,plain and simple

    Whats the rate of APR you are paying....Black Horse are high risk lenders if memory serves me right

    Why do you want to sell the car?

    or are you the buyer

    boothy;7674245

    this,also the car actually belongs to the finance company and not you … this,also the car actually belongs to the finance company and not you until the debt is settledthis is a very dodgy thing to do



    But if the car is registered with DVLA under OP's name...does that not make the car hers? Technically the car was bought from the loan company using the money loaned out...if the car is registered with DVLA in OP's name then the car is hers isnt it? The loan company will just chase OP for payments of loan rather than the car wont they?

    Otherwise if car is written off...and OP stops paying debt, is loan company going to take the car and leave it at that or carry on chasing for payment??

    Banned

    davidn84;7674282

    But if the car is registered with DVLA under OP's name...does that not … But if the car is registered with DVLA under OP's name...does that not make the car hers? Technically the car was bought from the loan company using the money loaned out...if the car is registered with DVLA in OP's name then the car is hers isnt it?



    No, not if the finace is SECURED to the car, they finance company can claim the car back, like a mortgage lender can repo your house.

    davidn84;7674282

    But if the car is registered with DVLA under OP's name...does that not … But if the car is registered with DVLA under OP's name...does that not make the car hers? Technically the car was bought from the loan company using the money loaned out...if the car is registered with DVLA in OP's name then the car is hers isnt it?



    The car will be repossessed if the finance is not paid,the car is the collateral for the authorisation of the loan

    Finance is secured on car

    The DVLA has the OP as the registered keeper and not the owner(different things)

    You would need to check the agreement. If it is a conditional sale agreement the customer would be able to sell the vehicle and continue paying the loan. Black Horse Finance generally use Hire Purchase Agreements so I would stay away from buying the car unless you can contact Black Horse direct and they agree to pass good title to you (you would need to pay them direct). As you know that there is finance on the vehicle, if you did buy it, Black Horse would be able to take the car off you and you would have lost everything.

    DVLA only record the registered keeper of the vehicle NOT THE OWNER

    ele-font;7674238

    but i assumed the loan was against the seller, not the car? :thinking:



    If you took a bank loan out, that would be against you and not the car but a HP agreement is different.

    Essentially they are 'hiring' the car to you for a fixed payment each month (calculated by taking the list price, subtracting the expected value at the end of the agreement, adding a profit margin/interest charge and dividing that by the number of monthly payments you agreed), with the title passing to you at the end (normally for a final fee) or you can give it back. Whilst the agreement is in place, it is effectively the HP company that 'owns' the car.

    In this case, if you don't pay the finance company back when you sell the car it is considered fraud, hence HPI checks.

    Hope that helps

    Dave

    There are some companies/dealerships that will buy the car from you and pay the remaining of your balance, so if you had £5000 left to pay, and the car was worth £6000, they would pay the £5000 to the finance company, and then give you the other £1000.

    In the case of negative equity...nobody is going to take that on.

    boothy;7674312

    The car will be repossessed if the finance is not paid,the car is the … The car will be repossessed if the finance is not paid,the car is the collateral for the authorisation of the loanFinance is secured on carThe DVLA has the OP as the registered keeper and not the owner(different things)



    Whats the difference then? Not a car owner so no idea lol

    ele-font;7674108

    Hire company is black horse.



    Don't think BMW is Black Horse?

    EDIT: see what you were saying now...I think haha

    davidn84;7674350

    Whats the difference then? Not a car owner so no idea lol



    its owned by someone else,but you are the keeper,basically a finance company is hiring the car to you until you pay them back,you them become the owner

    Original Poster

    Thanks for all the advice guys.

    It seems its a no sale in that case. individual rep left

    Banned

    What the hell are you doing? Going overdrawn, having a car in negative equity and thinking about upgrading to sky HD. Just admit you are completely useless with money.

    Original Poster

    lumoruk;7674489

    What the hell are you doing? Going overdrawn, having a car in negative … What the hell are you doing? Going overdrawn, having a car in negative equity and thinking about upgrading to sky HD. Just admit you are completely useless with money.



    Good point. Want to be my accountant?

    Banned

    I'll put you onto one of my wife's friends,

    only way round it if you REALLY want rid of the car is trade it in and the negative equity will be added on to the new finance and spread over the new payments, but if you do this you will just be going around in circles everytime you get a new car and the outstanding finance from every car will follow you, hope this helps

    But if the car is registered with DVLA under OP's name...does that not … But if the car is registered with DVLA under OP's name...does that not make the car hers?



    No. Being the registered KEEPER of a vehicle isn't the same as being the OWNER of the vehicle. New log books make this very clear now in big letters!

    Joe

    joemcinally

    No. Being the registered KEEPER of a vehicle isn't the same as being the … No. Being the registered KEEPER of a vehicle isn't the same as being the OWNER of the vehicle. New log books make this very clear now in big letters!Joe



    Another newbie bumped old thread!

    dh058977

    Another newbie bumped old thread!



    You would think they would read the date on thread and notice how old it is. Best one I saw bumped was one by ILP months back asking for ideas for a present for an old lady - and this newbie bumped it by posting "chocolate" lol
    Edited by: "bossyboots" 15th Dec 2010

    Another omission is the fact that the mobile version of the site has no dates on it, still not sure how they find old stuff, I guess if they search a keyword it would come up and have no dates. Seems to be happening too often for that to always be the case though.

    bossyboots

    You would think they would read the date on thread and notice how old it … You would think they would read the date on thread and notice how old it is. Best one I saw bumped was one by ILP months back asking for ideas for a present for an old lady - and this newbie bumped it by posting "chocolate" lol



    i think it was more like 2 years old lol

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