On PCP Scheme, but want to sell car privately - possible?

[futureal33]

Hi all,

Just as the thread title states really. I am looking to sell my Mini Cooper S privately, but the car is currently on the Mini Select PCP Scheme and I owe around £15k on it... If I was able to sell the car privately for that amount, could I just settle the finance with mini financial services and then take out a fresh PCP scheme on a new vehicle?

Ps - I have explored the route of selling it back to mini, but would prefer to sell privately as I believe it is better value for both parties involved..

If anyone has done similar please let me know as I really dont know where I stand!

Thanks!

[Rakey]

Yes you can sell it but have to pay it off.

Some buyers might do a HP check and it might put them off, so be straight with them up front

Have you looked to see what percentage you have paid off? As there is a clause in the agreement that when you reach a certain amount that you can just end the agreement and hand the car back to the finance company

[neilobe]

I have checked into this a bit, and it is confusing .
From what i know, if your over half way through the payment term you should be able to give the car back and walk away.
If not you can sell the car, but will need to pay off the outstanding balance which could be more cause they add on interest, and also someone who does a check on that car will come up with finance so may put them off...
Can you not just take the car in and they adjust your payments on a new mini if thats what your after ?

[futureal33]

Thanks for the replies

Unfortunately I am nowhere near half way through my repayments, so just handing the keys in and calling it a day isnt an option -I would have to sell my car privately, and either get the buyer to pay mini financial services directly or send me the money and then I would pay Mini...

The problem is I am looking at getting a Mini that is being sold privately, so I am kind of stuck until I can get out of my current finance deal

I understand that the car will show outstanding finance on the HPI check, but as long as I make the buyer aware of that and they are OK then it should be fine to just sell the car right, there are no legal boundries I am crossing by selling something that is technically not mine etc?

Thanks for the help so far

[Streeters]

Technically it is an offence to sell a car which has oustanding finance against it. In theory the best thing would be to pay it off as the sale goes through. I'd pay it myself though in case the buyer doesnt settle, then they'd have your car and you'd still be liable to make the payments.

[Shaun]

I thought it was illegal to sell a car with outstanding finance too as you don't actually own the vehicle.
I looked it up and found this to be quite useful.
Legal Issues Explained - Car Repossession

Here's the bit about selling.
"My friend has offered to buy the car of me even though there is outstanding finance on the vehicle. Can I sell it to him?
It is actually against the law to sell a car if it still has finance on it. Please make sure you always settle outstanding finance before ownership is changed."

[futureal33]

as I thought :s

Interesting read, I will speak to Bmw MINI and see what they have to say on the matter!

Thanks again

[coopman7]

Quote: Originally Posted by Shaun (original)

I thought it was illegal to sell a car with outstanding finance too as you don't actually own the vehicle.
I looked it up and found this to be quite useful.
Legal Issues Explained - Car Repossession

Here's the bit about selling.
"My friend has offered to buy the car of me even though there is outstanding finance on the vehicle. Can I sell it to him?
It is actually against the law to sell a car if it still has finance on it. Please make sure you always settle outstanding finance before ownership is changed."

yeah that has nothing to do with arranging the sale of your car...I have had pretty much all my cars on finance and everytime sold either to a private buyer OR to a different dealership.. It is illegal to knowingly sell someone a car which has outstanding finance BUT most definetly not illegal to arrange the sale.. As long as you settle the outstanding balance.. You call up mini, get the settlement figure and basically thats what you need to sell your car atleast at so you can pay off the finance...If what you say is true then basically your saying MINI have a LEGAL MONOPOLY against car buyers in that if you buy a car from mini on finance you can only sell it back to them at whatever price they want to pay unless you can find thousands of pounds GIVE ME A BREAK

After selling many times to private buyers and dealers i can vouch that if you make sure you tell them, this is what is left outstanding on the finance and i will settle it with mini.. I think you would find alot of people being charged by police if this was illegal, it happens all the time...If i sell someone my car then send the money to mini to setlle finance thats it, deal done and over...People do this all the time, dealerships included like Lotus and im sure they wouldnt enter into any illegal purchases, fact is its not illegal - maybe go out and see yourself as thats how the industry works instead of reading articles If you sell your car to someone without disclosing outstanding finance then they will get the car repossessed for not paying and the seller will be charged with fraud..Thats hardly the same as an honest seller who wants rid of their car settling finance..

HP checks are their so the buyer can see if the seller is telling the truth about the car.. Its to make sure the buyer arranges with the seller the settlement of the HP I.E After the HP has been disclosed by the seller it is upto the buyer to make sure the outstanding finance is settled.

Quote: Originally Posted by Streeters (original)

Technically it is an offence to sell a car which has oustanding finance against it. In theory the best thing would be to pay it off as the sale goes through. I'd pay it myself though in case the buyer doesnt settle, then they'd have your car and you'd still be liable to make the payments.

True..However if a buyer did that and thought they were smart then you simply stop making the payments and the car will be repossessed...Either way its always best to settle the finance yourself with the buyers money..

[joyrider81]

I've heard of cases where the seller calls the finance company with the buyer. The buyer pays the amount owed to the finance co by debit card, then pays the seller the balance.

[Shaun]

Quote: Originally Posted by coopman7 (original)

yeah that has nothing to do with arranging the sale of your car...I have had pretty much all my cars on finance and everytime sold either to a private buyer OR to a different dealership.. It is illegal to knowingly sell someone a car which has outstanding finance BUT most definetly not illegal to arrange the sale.. As long as you settle the outstanding balance.. You call up mini, get the settlement figure and basically thats what you need to sell your car atleast at so you can pay off the finance...If what you say is true then basically your saying MINI have a LEGAL MONOPOLY against car buyers in that if you buy a car from mini on finance you can only sell it back to them at whatever price they want to pay unless you can find thousands of pounds GIVE ME A BREAK

After selling many times to private buyers and dealers i can vouch that if you make sure you tell them, this is what is left outstanding on the finance and i will settle it with mini.. I think you would find alot of people being charged by police if this was illegal, it happens all the time...If i sell someone my car then send the money to mini to setlle finance thats it, deal done and over...People do this all the time, dealerships included like Lotus and im sure they wouldnt enter into any illegal purchases, fact is its not illegal - maybe go out and see yourself as thats how the industry works instead of reading articles If you sell your car to someone without disclosing outstanding finance then they will get the car repossessed for not paying and the seller will be charged with fraud..Thats hardly the same as an honest seller who wants rid of their car settling finance..

Quote: Originally Posted by Shaun (original)

I thought it was illegal to sell a car with outstanding finance too as you don't actually own the vehicle.
I looked it up and found this to be quite useful.
Legal Issues Explained - Car Repossession

Here's the bit about selling.
"My friend has offered to buy the car of me even though there is outstanding finance on the vehicle. Can I sell it to him?
It is actually against the law to sell a car if it still has finance on it. Please make sure you always settle outstanding finance before ownership is changed."

Sorry to quote myself but I am not stupid. Please read all the way to the bottom of posts before condemning us all as numptys. I would not personally hand hand over a lump sum on the basis that someone I have only just met to buy a used car will then use it to pay off the finance.