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Selling a car that is on HP - can it be done?

Discussion in 'Motors' started by iv-tecman, 30 Jan 2006.

  1. iv-tecman

    Sgarrista

    Joined: 12 May 2005

    Posts: 8,363

    I’m looking to sell my car, but it’s on HP. The HP agreement was fairly cheap, got it on a very good Honda APRdeal (7.2%), and was cheaper then a loan, well it was at the time...

    I was going to keep the car for the entire 4 year agreement, but after 14 months I’ve decided to change to something that is more suitable for transporting my dogs etc.. A Honda saloon Accord is a nice motor, but try lugging dogs around in one.

    I would prefer to sell private, to maximise the amount I get back, and then buy another new car. I rang Honda Finance to ask how I would go about selling the car, as I don’t have the money to pay the balance off, and the car is worth more then the settlement. They told me to sell it, and then pay back within 30 days, and have given permission to sell the car.

    Is this legal? Honda say they can allow this, and I must tell the buyer. I certainly wish I’d gone for a bank load now, but that APR was so low at the time, thinking about saving a few pennies at the time. Any advice? I mean HPI checks are going to throw up all the alarm bells.. Buyers will be scared off, and I'd be honest and list the car as on HP, to be payed off once sold. But who would trust this.. I wouldn't..

    I have a credit card that as a 20K limit. Has a zero balance, but I’m not keen on paying a car loan off with a credit card. This might incur a lot of charges. Do I have any options? I’d really not want to trade in, as dealers are thieves. I’d only get ripped off.

    Thanks all
     
  2. Tesla

    Capodecina

    Joined: 19 Jan 2003

    Posts: 17,405

    Location: Bristol, UK

    I am not sure if you can pay your car loan with a credit card. Where I used to work you couldn't settle credit with another form of credit (directly).

    You do have to tell the buyer that the car is on HP. Personally, I would never buy a car that has outstanding credit.

    I think your best bet would be to get a bank loan that has no penalty for early settlement. Go and have a chat with the bank i'm sure they can advise.

    You can then pay off the loan with this money, sell the car, pay back your loan and then go from there.
     
  3. Firestar_3x

    Caporegime

    Joined: 11 Mar 2005

    Posts: 30,290

    Location: Leafy Cheshire

    Finding someone to buy it will be hard since they will be trusting you to take that money and pay the car off, if you don't the vehicle could be taken back, also if you pay the full balance on the car (Credit card) before selling it and the car won't sell the interest charges will be huge after a while.
     
  4. iv-tecman

    Sgarrista

    Joined: 12 May 2005

    Posts: 8,363

    That is what my worry was.. My credit card I think allows for loan re-payments, as they are always sending me rubbish though the door etc saying pay off loans etc... But what if the car doesn't sell... The amount payable would be huge..!! Think I'll steer clear of that option..

    I can have a talk with my bank and see if they will give me a loan. They might be OK with it, I'm in good standing with the bank. I didn't think anyone would be looking to buy a car with outstanding HP. Even though the HP is not a rip off, it's a good APR, low monthly payment for such a big, well spec'd car, and I'm honest who would trust that? I wouldn't.

    Failing this, I'll just have to keep the car I guess... So wish I'd brought a hatchback, but at the time I didn't have the dogs.. How times change in 14 months... LOL..
     
  5. Simian

    Sgarrista

    Joined: 19 Oct 2002

    Posts: 8,117

    Location: Swindoniantown

    Thats exactly How I'm gonna do it!!!...

    The Final Payment on my CR-V is about £7500... so we're gonna get a loan for £10K pay the final payment, Buy a 'Runarround' for £1K Sell the CR-V (its worth about £12K, then Buy summut else for £6K and pay off a 'Lump-Sum' from the Loan to reduce it!...

    Honda Finance does seem like a good idea when you look at it (cheap APR and Small-ish payments) but I forgot about the Final payment (or just hand over the keys and walk away!!)
     
  6. PeterNem

    Sgarrista

    Joined: 15 Feb 2003

    Posts: 8,320

    Location: NJ/NY, USA

    Get a credit card with interest free balance transfers (and credit card cheques - this is the important bit) for 6/9/12 months.

    I got one from virgin (MBNA card rebranded) and despite being 21 at the time and on a gap year on a pretty average sallary I got a 5k credit limit.

    You can then write yourself a credit card cheque for the ammount of the credit limit, and in effect you have free money for 6/9/12 months.

    Be cautious though as a lot of places now charge a 2% admin fee on the cheque, usually to a maximum amount though of around £50.
     
  7. iv-tecman

    Sgarrista

    Joined: 12 May 2005

    Posts: 8,363

    Hmm.. I’ve called my bank and I applied for an 8k loan to pay the HP off. As I don’t own a home, as I rent my house they weren’t too keen on the amount. Car is worth about 11.5K. But as the bank loan will be un-secured, they weren’t too keen.

    Just got back from Honda, as I went there in my lunch break, and as I suspected. Bunch of crooks. Wasn’t prepared to offer me a figure unless I had another car in mind, but said, with his figures from his magical book we are looking around 8.5K. Not a chance… Car is worth nearly 3K more then what Honda wants to offer me..

    I knew they were thieves.. Ok, what to do.. I really need a car that can handle large dogs. Even though my dogs aren’t large at the moment, as they are both still growing, give it another 6 months and two rough collies aren’t going to fit well in the back of a 4 door Honda Accord. And before anyone says why get two dogs if you have no way to transport them, it was a moment of stupidity OK. I saw them both, and I just had to rescue them both, as they were such wonderful looking puppies.. My heart was bigger then my brain..

    I’m not applying for anymore loans, as too many applications within a six month period can damage my credit file.

    Credit Card cheque at 0% for 9 months sounds a good idea… But sadly my credit card has these cheques, but a scandalous 21.1% APR.. If the car doesn’t sell or I’m forced to sell for less I could be in trouble.

    BTW – the car is a normal 4 year once paid that’s it the car is mine deal. 7.2% APR, 48 payments, no final payment, no mileage limits.. Just that the loan is secured on the car. It was a sweet deal, and affordable, I just forgot about how I would sell the car if I needed to…
     
  8. Firestar_3x

    Caporegime

    Joined: 11 Mar 2005

    Posts: 30,290

    Location: Leafy Cheshire

    I know its not a Hatchback but dont the back seats fold down to give you slightly more room?
     
  9. BaJ

    Hitman

    Joined: 19 Oct 2002

    Posts: 780

    Location: The middle bit

    Can you get the potential buyer of the car to pay the finance company directly instead of you?

    That way everyone can be honest about the situation and the buyer can get confirmation from the finance co that the loan is settled.
     
  10. iv-tecman

    Sgarrista

    Joined: 12 May 2005

    Posts: 8,363

    They do, but I'd like to set up the rear with a dog fence etc.. Its a shame to put two dogs in the back seats, as the car has half leather seats. I'm starting to think I might have to keep the car, and just put up with it.

    With me living a good few miles from any decent park or field, collie dogs love a good run, so throw them into the car and let them run themselves silly, but it's getting them there..

    Well thanks all, better buy some good seat covers.. LOL
     
  11. iv-tecman

    Sgarrista

    Joined: 12 May 2005

    Posts: 8,363

    Don't know how this would work. What if he takes my car, and then doesn't pay, or doesn't want to pay before he has the keys..

    It's all down to trust, I know how can this be done so it's all legal etc...?
     
  12. Firestar_3x

    Caporegime

    Joined: 11 Mar 2005

    Posts: 30,290

    Location: Leafy Cheshire

    It might sound totally daft but i'm trying to cover all angles, what about a small enclosed trailer of some description, would only need to be small.
     
  13. Scottland

    Capodecina

    Joined: 18 Oct 2002

    Posts: 15,211

    Location: North Wales

    If it's a HP agreement and not a PCP then once you've paid off 50% of the amount you can hand the car back AFAIK. Not really an ideal situation, as you don't get any equity out of it though.
     
  14. Tesla

    Capodecina

    Joined: 19 Jan 2003

    Posts: 17,405

    Location: Bristol, UK

    Maybe you should buy a second car for transporting the dogs?
    Could work out cheaper?

    Something like an old Volvo 740 Estate.
     
  15. iv-tecman

    Sgarrista

    Joined: 12 May 2005

    Posts: 8,363

    Ah... A doggie trailer.. I can get a tow bar fitted, Honda's are great at pulling stuff.. If I can make it safe and secure, and the dogs are safe and not in danger. I mean, this is mostly going to be trips for when it's dry, you know great dog walking days, trips to the vets, training etc.... They are loverly dogs, and I want the best for them. They were dumped on the RSPCA, and so I took them both (for a good donation to the RSCPA :) )

    As for handing the car back, I'm not at the 50% mark, it was a 4 year deal, only done 14 months out out 48.

    thanks all...

    Now, anyone know of good small safe doggie trailers? LOL

    Edit - google search -http://www.dogtrailer.co.uk/trailers.htm

    You can get transportation stuff for dogs etc.. This might be better then selling up and loosing or something.. Thanks for the top tip..!! Star..!!
     
    Last edited: 30 Jan 2006