Dumb Finance question

[bclark1979]

This is probably a really dumb question regarding having finance on my Leon. I have got my Leon on a PCP with a final payment at the end, am I right in thinking that I am not allowed to sell the car until the finance has been paid off?

I would ideally like to sell the car in order to get the £5000 needed to make the final payment and for reasons of cash flow it would be much easier if I could sell the car and then send them a cheque.

 

[MarkPro]

To sell the car before paying off the finance settlement is illegal. You cant sell something that does not belong to you - untill you pay off the complete balance, the car belongs to your finace company - sorry!

 

[bclark1979]

Yeah I thought that, I just didn't know how it worked in practice. I am just at a loss as to how to get the £5,000 before selling the car. I was thinking maybe Credit card. I will have to check with Seat Finance if they accept Credit Card.

 

[flashbsd]

they do not accept cc, debit only i bet

 

[bclark1979]

Arrrgh, how annoying! They really don't make it easy it for you do they.

 

[ianrawlins]

you could speak to a prospective purchaser and get them to send the outstanding balance in a cheque to the finance company and the balance to yourself. That way the finance is payed off at the time of sale.

Not sure how this stands legally, never tried it, only heard of it being done.

 

[Thomohawk]

Don't suppose you can just take a personal loan out to pay the car off..... or is that a pointless suggestion....

 

[schnipps]

Don't suppose you can just take a personal loan out to pay the car off..... or is that a pointless suggestion....

You could but there will more than likely be an early repayment charge for paying it back that early. I would make it quite clear to the buyer its financed and show them a settlement figure from seat finance on paper. Get them to pay seat finance instead of you, or whatever the difference is.

Thats why i never get cars on dealer finnance as when you come to sell it it gets tricky, a personal loan is much better. Better %apr and you can sell it when and however you like

 

[Matt Cupra R]

As above. It is actually quite easy to get the new buyer to pay off the existing finance. They should also prefer to do it that way as they are then sure there is no outstanding finance and will have proof it is paid. Alot of dealers will do this if you part ex against another car.

We did this on my wifes Renault that she had only had about 11 months out of the 3 year deal. The trader just cleared the finance so a private buyer can do the same.

Reason you give for the outstanding balance being less than you want to charge for the car is that you put down a large deposit.

 

[andycupra]

you can of course do a balance transfer from the cc to your account...

if its more a cash flow thing and you get it al sorted so you borrow momey only for a short period then you wont pay much interest.

BUT, LOTS OF CARDS NOW CHAREG A FEE FOR TRANSFERS. SAY 2% SO FIND ONE THAT DOESNT.

or speak nicely to mum dad, or anyone else...

 

[matt_s]

Talk to your bank and get a temparary overdraft. I did it when I bought my house and the seller wanted a bigger deposit than the mortgage company. If you go in they can be quite helpfull.