Bit of advice needed selling car

BluE-WinG

I have an expensive car I'm looking to sell, Car loan on it is about 19k Cars worth about 21k. Its a finance plan (Car Loan) from AIB.

How do I go about clearing this loan? Do I sell to a dealer, or privately? Or give it to AIB to sell? I'm not entirely sure how to go about selling my car.

the evil belly

did you take out a loan privately and then buy the car or is it a finace package from wherever you bought it. if it's a personal loan then simply sell the car and use the money to clear the loan, if it's finace then i'm sure there are others who know far more about it that i do. one thing i would check is that you're not going to be penalised for early repayment of the loan or anything like that.

BluE-WinG

Im fairly sure I will get penalised. Its a finance package and I dont know how exactly to go about clearing it.

the evil belly

might be worth dumping the money into another account and setting up a direct debit to pay it over the term of the loan. so in essence you've the money sitting there to cover it but you don't get penalised

BluE-WinG

the evil belly wrote:

might be worth dumping the money into another account and setting up a direct debit to pay it over the term of the loan. so in essence you've the money sitting there to cover it but you don't get penalised

An idea yes, however that will affect my credit rating when I go look for a mortgage in a few months lowering my total amount I can get..

the evil belly

will it. surely the fact that you've the better part of 20 grand sitting in the bank would be a good thing?

BluE-WinG

But is it not true that the Bank has an interest in the car, and If I sold it, they should know about it?

the evil belly

i think the only the only thing they'll care about is that the loan keeps getting paid. don't take my word for it though. best bet would be a chat with the bank

bazz26

Seems like you are stuck between a rock and a hard place.

If the car is worth €21k then a dealer will probably only offer you €18k for it as he knows you are desperate to part with it.

If you try and sell it privately then again your not going to get the full value of it and there are not too many people out there buying cars privately in that price range.

Also I just thought about it, any potential buyers will probably do a HPI check on it and find that there is outstanding finance on the car, they will probably walk away.

My understanding is that technically the car is still the property of the bank, (read the terms and conditions of your finance agreement). You might want to ring the bank and ask them for advice.

the evil belly

but is it hp or is a personal loan. i've a loan for my car. took it out myself, nothing to do with the garage. so as far as any hp check is concerned i own the car free and clear and no new owner will have any payments to make. if i sell it i can pay off the loan with the money or whatever

prospect

Tough position to be in.

Call your bank, and ask them to fax you a redemption figure.
This will give you an idea, (usually it takes a day), on how much they will charge you to buy out the loan.

Then advertise the car, for as close to the redemption figure as possible. If you get a potential buyer, ring the bank and ask again for a redemption and accrual figure, something like this:

I wish to redeem the above loan.
Could you please fax me the redemption and accrual figures.

This gives you a figure to buy out the loan, and the accrual figure gives you the value the quote adjusts by each day after the redemption figure was issued, (usually there is an expirey of one week on these quotes).

You will also have to mention the matter of the car showing up on a HPI Check with the bank, but I am sure they have some standard way of dealing with this.