When it’s time to sell your car, you want the process to be smooth and stress-free
Especially if there is a certain amount outstanding in terms of finance, since the car actually still belongs to the finance company.
This is true, especially, when you sell privately. It is possible that neither you nor the buyer understand all the legalities involved. If, however, you do decide on this route, always be upfront with your buyer and inform him that the car is still subject to a financial agreement with a lender. You are legally bound to advise him of outstanding debt on the car. Then you and your private buyer settle the deal which, for most, can be a daunting experience.
Our advice: Talk to the professionals such as a trusted, experienced car buying website. Our advice would be to always, instead of selling privately, sell to The Car Buying Group who have lots of experience in these matters. We will assist you every step of the way when it comes to advising you how to settle the matter.
Be Organised and Remember the Following
The first thing is to get in touch with your lender. They will advise you of the settlement fee (which could include additional costs such as administration fees to allow you to get out of your contract with them). Get this figure in writing. Let them advise you how to proceed to settle the figure. (If you decide to leave this in the hands of the dealer, he will, on your behalf, find out what this figure is and lead you through the process to finalise the settlement.)
Have all documentation in place: proof of ownership, MOT and especially your contract with the finance company.
Go to the The Car Buying Group website and follow the instructions which will lead you through the process. The first thing you’re looking for is the approximate value of the car. Thereafter you will liaise with us and inform us of the finance settlement figure (which you have obtained, beforehand, in writing) as well as anything else we need to know about the car, since the online valuation may not have accounted for issues such as detailed vehicle condition.
We will now contact the finance company and inform them that we are acting on your behalf and that he needs their permission to go ahead with arranging payment of outstanding debts to them, the lender.
Settling outstanding debt: The amount owing is deducted from the value of the car and must be paid to the financial institution; the balance is paid to your bank account by the finance company - we will arrange this.
If, however, you owe more than what the we will pay you according to the valuation, all is not lost and the deal can still be done. You can pay the shortfall to us and we will pay the full balance to the lender.
You leave the car with us and you relax knowing that all financing issues have been taken care of.
Most sellers do not get involved often with issues such as selling their financed car. It is almost always preferable to leave this process to those who know. Choose a reputable company with many years of experience, a company that is known for their professional dealings with customers, a company that assures you of making the process hassle-free. At The Car Buying Group we are very experienced in all matters relating to buying and selling, also showing our customers the way, leading them through what can be a frustrating process. We work fast, with great success. No wonder then that 97% of our customers are happy to refer us to their family and friends.