[Closed] Selling car privately to trader - what could go wrong?

I pay him small amount of negative equity

You've ballsed this one up...

Yes, all your monies have been paid to your most excellent finance company.

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Ring the finance company yourself to confirm, rather than the trader passing the phone over once he had transferred. At least you know you're speaking to them rather than potentially his mate. (Pictured above)

Yes fair point. I was planning on speaking to VWFS myself to confirm but worth watching for the funny on that.

Anything else?

"You've ballsed this one up"

Hoping not. He pays full balance outstanding to VWFS then I pay him difference between amount paid to them and price agreed. The negative equity part...

... yes?

Do you have a receipt of sale? If sold privately the buyer doesn't have much recourse, sold as seen etc.

As long as your finance company are paid and happy

Haven't sold it yet. But yes, will get receipt.

Seems a lot of hassle for a trader most have regular sources for cars and didn't think private sales normally featured?

Been in business long? Premises? Actually the owner or just some random using their name?

After that other than a transfer of funds scam I await others input - read these threads useful education

So he pays more than you ask, clears the finance then you pay the difference? Seems stacked in your favour. Apart from confirming it's all done right sounds fine. Why not pay you and you clear the finance?

Why not pay you and you clear the finance?

Was the car bought on a straightforward HP agreement?
Had you paid more than 50% of the original value payable?

If so, I think you could simply have handed car back to VW and walked away paying no money at all. I think that is a key principle of HP agreements in UK.

[url= http://www.thecarexpert.co.uk/car-finance-voluntary-termination-pcp-hp/ ]This link seems to support it.[/url]

As above if you have the car finance from VW and it is an HP agreement you are legally entitled to hand it back without further payment if you have already paid at least 50%.

I did this with VW a few years back. Phone them up, it may be that even if you havent paid 50% it may cost you less to give it back and pay any remaining monies to make it up to 50%

So he clears the finance to the finance company .... Or himself at another account

You give him a small amount as negative equity .... Or, you give him more of your own cash

He gets a car at no cost, and some of your money plus, you still own the debit with the finance company.

Why don't you get a settlement figure from your finance company, he gives you cash, you clear your own debit?

Was the car bought on a straightforward HP agreement?Had you paid more than 50% of the original value payable?If so, I think you could simply have handed car back to VW and walked away paying no money at all. I think that is a key principle of HP agreements in UK.

Correct , under the half's and thirds rule if you've paid 50% you can simply hand the vehicle back
(condition to be in accordance with age and miles ) . You can if your a little under 50% pay the extra .
Handing back does not effect your credit rating in any way .

OP, I've done what you're proposing (except without the negative equity bit).

Ignore the scare stories, it's quite simple.

[b]You[/b] phone up VW finance whilst the buyer is there, and ask to settle the account. They'll give you a settlement figure and you tell them you're going to pass the phone to the car's purchaser who will settle with a [b]debit[/b] card. Purchaser gives VW finance the details, and then gives you the phone back. VW confirm to you they have received payment.

You then give purchaser your cash for negative equity and a receipt that clearly describes who has been paid what. Two copies of receipt, both signed by both of you.

The key point is you ringing VW and setting up the payment, not the purchaser. No buyer will ever go for giving you cash and allowing you to settle at your leisure if the loan is secured against the vehicle. Because if you don't, they don't own the car.

Most have missed making sure you fill in & send off [u]THE SOLD TO A DEALER PART OF THE V5c[/u]
If your finance co have the money ( this can take days to clear onto their system even if it has left the traders bank) & you have a receipt then your home & dry.

HTH.

You phone up VW finance whilst the buyer is there, and ask to settle the account. They'll give you a settlement figure and you tell them you're going to pass the phone to the car's purchaser who will settle with a debit card. Purchaser gives VW finance the details, and then gives you the phone back. VW confirm to you they have received payment.

What advice would too you give the buyer in this situation?

the same. The level of risk to the buyer is exactly the same as if they bought the car any other way. Any buyer who pays the seller directly for a car with outstanding finance secured against it is a mug.

I forgot that with my buyer we both looked up the finance company for mine's details as I didn't have them to hand and did it on a speaker phone from the start as it was easiest. He knew from the start he was talking to Suzuki finance.

I bought a van with outstanding finance, It came up in the vehicle check and when I called the seller, he advised he was in the process of paying it off. (nothing dodgy, I was going a long way to view it so was doing the check before I met the seller)

I called the finance company (listed in the vehicle check) and (after 48hrs) they were able to confirm the finance was settled and sent me PDF letter to confirm that the account was settled and they had no further interest in REG123.

From a buyers perspective, this is probably a bit safer than verbally hearing the settlement on the phone as you won't know if they are really speaking to their finance company, or their mate down the pub. Also, this finance place wasn't open at weekends so the seller couldn't have settled 'on the spot'.

(condition to be in accordance with age and miles ) . You can if your a little under 50% pay the extra .

Done this on two cars. Bear in mind that it's on the total amount payable over the term, so unless you bought on 0% finance you'll need to be well past the half way point in the deal before you can hand car back (unless you're willing to pay the difference).