Selling a car on finance

[donbracho]

hey up all sounds like I aint the only one with this problem. Its bloody mental aint it ! I bought a car from a private seller who had been told by BH they can sell the car as guess what ... its a peraonal laond nd has an email confirming this. I did the MOT/tax the other day and hpi'd it thru my mates garage and guess what popped up !!!

The seller was shocked/upset, has been told 4 different things by four different people. The best being well if you can get an invoice from buyer/seller showing amount paid we can remove the interest from the monies owed. This BH are a joke.

I am gonna write to them and tell them to remove it as legally the vechicle is now mine nothing to do with them at all, what do you reckon ???

[brent100]

Hi Gents

I know it's an old thread but what as the outcome with Black Horse Finance as I have a "personal loan" with them for a vehicle that I want to sell.

 

Cheers

[emmaj89]

hi i have a bank loan with barclays that im still paying i bought a new car with the money, i now want to sell the car but dont know if its legal and would people buy the car?? If so how do i go about this. thanks for your help emma

[brent100]

Hi Emma

If you have a bank loan with barclays you can do whatever you want with the money. If you buy a car the car is your car and as such you can sell it whenever you wish and then spend the money you receive from it on whatever you wish.

 

Barclays have no say on when you sell the car.

 

This would only be the case if you had the car on hire purchase - you do ot own the car until you have paid for it.

 

I hope this helps

 

Regards

[emmaj89]

thanks thats a relief, and i can now proceed to sell my car...i think ill buy a little run around and pay off some of my bank loan. thankls for your help emma

[dizzydjc]

Ok here goes,

 

I was very stupid i have to admit, and maybe a bit naive...

 

but I initially took out finance on a car that I wanted from Close Motor Finance, which was fair enough.

 

About a year later, I went to another garage to get another car. This new dealer did all the usual checks and so on on my old car, and at the time (shamefully) I did not know that this would be a problem, and the new garage didn't mention anything either about old finance, they even did a credit check on me.

 

So off I go, with my new car...a whole year later (yesterday) I got a letter from Close Motor Finance (the old finance) saying that I sold the original car and was not permitted to do so, they've given me a settlement figure..which luckily, I can cover, but have also said that this is theft and that they are going to report this as against the law.

 

Now forgive my naivity here, but surely..the garage who took the car, should have picked up that there was finance on the old car, and arranged a settlement there and then?

 

I was pretty young and stupid when this all happened, but am now worried about the consequences of this happening and whether anything can be done to stop it.

 

Thanks.

[brent100]

Was it an Hire Purchase agreement or a loan agreement?

[dizzydjc]

If i'm honest i'm not sure, I believe it to be a loan agreement as it was borrowing of a certain amount of money.

[brent100]

i had a similar issue with Black Horse Finance and I took a copy of my agreement to my local Office of Fair Trading who confirmed that it was a loan agreement and NOT a HP agreement which meant Black Horse could not stop me seling the vehicle and had no right to the vehicle. When I mentioned the OFT to Black Horse they suddenly agreed that it was a loan agreement and they had no right to stop me selling it.

 

Take it to your local OFT office and ask them to advise you on it.

 

As I understand it, if it is a loan agreement they have no rights over the vehicle at all (even if the vehicle is mentioned on the actual agreement).

 

If yu do not have a copy of the loan agreementask them to send you a copy.

 

Good luck

[flub1976]

Personal Loans or MOtorloans are not HP and the Finance company have no rights to the vehicle at all. They starting doing these because of the huge amounts of people using VTs to hand cars back to them.

 

They dont like you to sell the car without settling but they have NO choice in letting you. If they will not remove there intrest then write to them recorded delivery and if still no luck try TS as your rights to the free title of the vehicle are being affected by the finance company.

 

You can if necessary issue county court proceedings to force them to remove the intrest and also claim costs and maybe a little loss os title value if they been holding out for a while.

 

If the car is on finance and you sell it to someone who buys it in good faith then they still retain good title due to the Hire Purchase regulation 1964 as amended (legalized theft if you ask me) but you will still have to pay for it.

 

You must however get the interest removed as insurance companies etc will payout to the finance co first and then ask questions, they shouldnt and you would have a case against them for recovery if you can show good title. Hope this helps but it is very complicated and i would need more details to help in an individual case

[Patti_pat_pat]

A friend of mine owes HP payments on his car, his been avoiding the finance company now for a few years, even leaving the registration at an old address he has now gone to prison for 10 years and he wants a memeber of his family to take the car over. Am I right in thinking that now his gone to prison, his car still be seized by the finance company?

[Dipply75]

Ressurecting a v old thread, but this is obviously a problem/[problem] happening to many folks....and let me tell you, still is.

 

Friend has just been caught out the same way, asked for HP, thought it was HP, turns out to be personal loan yet recorded on HP register.

 

Did anyone have any joy with BH? How n the hell have they been getting away with this for all these years?!

 

OFT need to be doing something. Simple cross check of personal loans sold to purchase cars vs same cars on HP register. Bingo...dodgy dealings.

[ippie]

Hi,

I currently have a HP agreement with Audi Finance and have requested a settlement figure. My intention is to sell the vehicle to cover the settlement and to do this by means that the buyer is aware of the HP and will only recieve vehicle once amount is cleared..can I do this...

[crem]

Hi,

I currently have a HP agreement with Audi Finance and have requested a settlement figure. My intention is to sell the vehicle to cover the settlement and to do this by means that the buyer is aware of the HP and will only recieve vehicle once amount is cleared..can I do this...

 

Well yes you can, but whether you will find a buyer willing to pay you £x ,000 and patiently sit and wait for a week or 2 until Audi confirm the HP is clear is a very differnet matter!

[ippie]

....I will only sell for the outstanding balance and the finance company accept payment by chaps which is same day....if I can't get the balance I won't sell!

[blackknight]

Most Finance companies will now take payments over the phone by debit card, just get the buyer to pay the finance off in your presence and then confirm with the finance cmpany its been paid, you shold also be able to get a instant clearance by fax or email.

Then he pays the balance if any direct to you. Job done

[francine25]

I have had the same problem, I bought a car from my ex who had a fixed sum loan agreement with creation finance. I now need to sell this car by the end of this week. I called creation last week, they asked me to fax through V5 to show I was the owner, I did this and last tuesday was told the HPI marker had been removed and would take 72 hours to show. I had a dealer sat waiting yesterday to buy the car and the marker is still on. He phoned creation and they refused to talk to him. I called them today and they said it shows on their system it was removed yesterday and should show by friday.. however they refuse to put it in writing and won't fax the dealer saying they have no financial interest in the car as the finance agreement isn't in my name!! So I am stuck with a car with no tax on it, a dealer waiting to buy it, and no light at the end of the tunnel. Any ideas on what else I can do?? I have done everything they have asked and it's still got the marker on it