car finance

[2ndgunman]

I have just recieved a company car and want to get rid of my own one. I have spoke to my finance company about handing back the car but they said no. What could happen if I sold my car that I bought on finance? I would keep up the monthly payments. It has negative equity

[Oneeyedvic]

If you have a "Loan Agreement" then you can sell the car and keep paying the loan agreement back.

If you have a "Hire Purchase" agreement, then the finance company will have registered your vehicle with HPI and you will be unable to sell the car until you have cleared the finance (or the buyer can pay the finance company direct and you can pay off the negative equity).

Further, if a Hire Purchase agreement, printed on the document will be a section outlining the "halves" rule which tells you how much you need to have paid off before you can hand the vehicle back.

So really, it depends on what type of finance you took out.

[NORMANTHEDOG]

you will be very lucky to sell it,as most people will do a hpi check on it.

[Gmcd01]

No, sadly, you may not legally sell a car on HP (If that's what this is.) Under the Supply of Goods (Implied Terms) Sct 1973, you do not own the car until the final payment- the HP company retains ownership, not you or the garage that sold it to you. Follow up on Butterworth v Kingsway Motors if you'd like further understanding. If you sell, it is a breach of s.12 of the Sale of Goods Act 1979 as you have no right to sell the car which isnt legally yours. Thus, the buyer could claim all the money they paid to you back at any time- even if they have the car for 12 months. Hope this helps.

[auzzie]

Why dont you get a loan to pay the car off, then sell it?