Selling my Cali - outstanding finance- advice please

[fezzer]

I’m about to list our 2024 6.1 Ocean for sale, most likely via the club. I took out a 5 year interest free hire purchase with VW at the time of purchase for 50% of the value. I’ve not sold a vehicle before with outstanding finance and am a bit unclear as to the process. Would I need to pay the outstanding off first or would the buyer pay directly to VW Finance and then the balance to me?
Also I have lots of extras including brandrup carpets, ISO top and Brandrup mosquito net which I was thinking of including with the sale whereas other extras like thermal windscreen cover, Thule sun shades, Isabella outside mat (plus loads of other stuff) separately. Does that seem sensible?

 

[Up10]

I’m about to list our 2024 6.1 Ocean for sale, most likely via the club. I took out a 5 year interest free hire purchase with VW at the time of purchase for 50% of the value. I’ve not sold a vehicle before with outstanding finance and am a bit unclear as to the process. Would I need to pay the outstanding off first or would the buyer pay directly to VW Finance and then the balance to me?
Also I have lots of extras including brandrup carpets, ISO top and Brandrup mosquito net which I was thinking of including with the sale whereas other extras like thermal windscreen cover, Thule sun shades, Isabella outside mat (plus loads of other stuff) separately. Does that seem sensible?

I bought a vehicle through the club site which had a VWFS agreement on it. I paid a deposit and agreed a completion date but as a purchaser, I made sure the finance was fully paid by the original owner before I completed. From memory, you need to allow about 5 working days before it shows up on VWFS records as having been paid.
I believe it is possible to complete the sale with finance still on it but that would be up to the buyer to agree. You should speak to VWFS to clarify how this could be done so you are fully informed.

 

[andyinluton]

I’m about to list our 2024 6.1 Ocean for sale, most likely via the club. I took out a 5 year interest free hire purchase with VW at the time of purchase for 50% of the value. I’ve not sold a vehicle before with outstanding finance and am a bit unclear as to the process. Would I need to pay the outstanding off first or would the buyer pay directly to VW Finance and then the balance to me?
Also I have lots of extras including brandrup carpets, ISO top and Brandrup mosquito net which I was thinking of including with the sale whereas other extras like thermal windscreen cover, Thule sun shades, Isabella outside mat (plus loads of other stuff) separately. Does that seem sensible?

If selling to a dealer keep the extras & sell them on here.
Selling privately include them as part of the deal.

Ive bought & sold various vehicles where finance has been still owing on the vehicle, the usual thing is to get the finance company to agree to accept payment direct from the buyer.
On a £100k+ car I sold a couple of years back I had about £25k finance owing, the sale day went as follows:


Appointment made at buyers Metro Bank
Car parked outside front door, Buyer & seller meet at metro bank,
Bank wanted a contract for sale, buyer and seller ID, & finance co details & verified all those.
Buyer makes payment to finance company direct, Bank staff confirm payment is non-reversible.
Buyer makes payment to me, Bank staff confirm payment is non-reversible.
V5 completed
Went to cafe for an hour.
Bank staff confirm transfers have gone through, my banking app shows money received.
Hand over keys.

Just don't forget if they don't pay the finance co, you are still liable.

However you do it, at some point one of you is going to be holding the money and the keys.
It felt a lot safer having the bank involved as a 3rd party overseeing the process.

The only time ( about 25 years ago ) that ive had a problem was trading in to a small dealer & he forgot to settle the finance & disappeared off to Australia for 6 weeks. Left his garage locked up. I thought he had done a runner with the money but he paid it in the end along with the additional interest accrued.

 

[fezzer]

If selling to a dealer keep the extras & sell them on here.
Selling privately include them as part of the deal.

Ive bought & sold various vehicles where finance has been still owing on the vehicle, the usual thing is to get the finance company to agree to accept payment direct from the buyer.
On a £100k+ car I sold a couple of years back I had about £25k finance owing, the sale day went as follows:


Appointment made at buyers Metro Bank
Car parked outside front door, Buyer & seller meet at metro bank,
Bank wanted a contract for sale, buyer and seller ID, & finance co details & verified all those.
Buyer makes payment to finance company direct, Bank staff confirm payment is non-reversible.
Buyer makes payment to me, Bank staff confirm payment is non-reversible.
V5 completed
Went to cafe for an hour.
Bank staff confirm transfers have gone through, my banking app shows money received.
Hand over keys.

Just don't forget if they don't pay the finance co, you are still liable.

However you do it, at some point one of you is going to be holding the money and the keys.
It felt a lot safer having the bank involved as a 3rd party overseeing the process.

The only time ( about 25 years ago ) that ive had a problem was trading in to a small dealer & he forgot to settle the finance & disappeared off to Australia for 6 weeks. Left his garage locked up. I thought he had done a runner with the money but he paid it in the end along with the additional interest accrued.

Thanks for the response, very helpful.

 

[Wannabecamperman]

Just don't forget if they don't pay the finance co, you are still liable.

Indeed! If you can, settle the finance BEFORE selling and get written confirmation from VWFS as it makes the whole thing simpler.

Under no circumstances allow the purchaser to reduce the amount they pay you, based upon them clearing the finance themselves.

 

[Wannabecamperman]

...I often have used Motorway who won't pay top price but as long as you get a written letter with the settlement figure, will happily buy a car on finance and they DO settle it for you. I had no issues this way

 

[reserves]

I’ve brought privately with a car on finance.

I paid off the finance directly and the balance

 

[2into1]

Regarding the accessories: if you can pass them to the new buyer for fair value then do so. Don't underestimate the time involved with negotiating, packing and shipping parcels all over the country.