Can I Sell My Car on Finance ?
It is possible to sell a car on finance, however the process can get tricky and confusing, we would never suggest selling a vehicle that owes finance privately due to the legal ownership of the vehicle, this may not be the dealer from where the vehicle was bought, but rather the finance company / credit broker and the lender, who lent via the credit broker to pay the dealer. In this case both the Credit broker and the lender have a financial interest in the vehicle, with the majority being the lender.
Who will buy my vehicle on finance.
Sell My Car Essex offers to purchase vehicles on finance, meaning now you may be able to get more money than what was offered by your local dealer! note: Some finance companies require a minimum contract time, prior to selling, or clearing / settling finance, please check with your finance company, further more Sell My Car Essex reserve the right to not proceed with a sale of a vehicle at our own discretion.
How Do I Sell My Car Privately On Finance?
The first step to selling your vehicle privately on finance in the United Kingdom would be to gain full ownership of the vehicle, by settling any financial agreements on the vehicle. Usual parties involved, Credit Broker, Lender, Borrower. To gain full ownership you must pay any remaining balance of your agreement when allowed to do so, to any parties with a financial interest. The majority of finance agreements only allows the borrower to settle their finance after a 2 year period, of which during this time the Credit broker gets paid their fees and is no longer part of the agreement, leaving just the Borrower and the lender. Please check your agreement or contact your lender to find out whether you are allowed to settle, if your are given a settlement figure, this means that you are able to settle.
Now that you are able to settle
Now that you are able to settle. Pay the settlement figure full, once it has been cleared by the lender you have full ownership of the vehicle. You may now begin to sell your vehicle!
Why is my settlement figure higher than the value of my vehicle?
There are cases where the settlement value has a greater than that of the vehicle, i.e, £500 settlement on a £300 vehicle, factors such as excessive mileage / engine wear / damaged bodywork / mot advisories / failures / poor and or lack of service history, etc, negatively impact on value, maintaining your vehicle and keeping to a limited mileage help maintain the value, resulting in a balanced vehicle / settlement value.
What if I can’t not afford the settlement figure but still want to sell ?
If this is the case we recommend contacting Sell My Car Essex to discus your selling options, Motor traders are governed by the law, and are responsible for settling financed on vehicles when purchase, oppose to when selling privately where the borrower (yourself) is legally responsible for settling the finance prior to selling. Please note, Sell My Car Essex shall only pay the value of the vehicle and will not cover any excess settlement figures, never less please feel free to contact us to discuss options!