Best way to sell car with outstanding finance

[Herkk]

Hello everyone,

I have a high spec C350e that I would like to sell mainly to get out of the finance agreement as it's starting to be a bit too expensive for ourselves. The issue is that there is outstanding finance on it which makes it difficult to sell privately. (and I'm the worse salesperson when it comes to that anyway)

I understand that there are some specialist dealers that will buy the car off you or sell it on your behalf for a commission, can someone recommend any?
Other than the multitude of "we buy your car" websites which give very low quotes I could only find Gravelwood, I'll get in touch with them today but they seem to prefer part-exchange.

Any advice and suggestions will be highly appreciated!

 

[Doodle]

It's not difficult to sell privately. Customer pays the settlement figure to the finance company directly, then give you the remaining balance.

Unfortunately the car itself is probably too mainstream to attract interest from the sorts of dealers that would offer consignment sale or buy for stock.

 

[FiveStar]

It's so much easier to own a car outright.

 

[Herkk]

It's not difficult to sell privately. Customer pays the settlement figure to the finance company directly, then give you the remaining balance.

Unfortunately the car itself is probably too mainstream to attract interest from the sorts of dealers that would offer consignment sale or buy for stock.

I guess I'm one of those who are just bad at selling, only tried to sell one car privately before and it made me never want to go through that experience again. (and that was a much cheaper car with no finance troubles)

I want to believe that the margins could be attractive in my case as I got it for a very good price, maybe another option would be to try a local main dealership? Do MB dealerships even do this sort of sale or return thing?

 

[Doodle]

You can certainly try, but to my knowledge most mainstream dealerships just aren't interested - it's not worth the hassle for them.

Some of the big prestige specialists might be, but I expect they'll gouge hard on the price.

 

[John Jones Jr]

I recommend you take a loan out for the balance and pay it off, then sell the car. That's the best course of action imo. Giving it to a dealer to sell you'll get shafted as per Doodle's comment above.

 

[prettyboy]

It's so much easier to own a car outright.

Helpful....

I'd try a main dealer and see what they say mate, you never know. It could be the kind of thing they've got a customer looking for at the moment.

 

[JattAmg]

What year is the car and mileage ?

 

[NOMONEYBUTAMERC]

Depending upon how long you have owned the car, and what deposit you put down , you may well find that the settlement figure on the outstanding finance is more than it`s current value. If the car was brand new when you bought it what % discount did you get? If it was a used car , your discount would have been from an inflated price anyway.
What is the outcome you need? Presumably you still need/want A car , in which case you may be able to "trade down" to a more suitable car. Either way , dealers like to make a profit on anything they trade.Good luck.

 

[ash59fifty-uk]

If anything I think it's a bonus when you see a car currently on finance for sale

You know it's insured, legal, has MOT, taxed and has always been under the watchful eye of the finance company

It's just a matter of being honest with it, all that needs to be done is a phone call to the company where the balance is paid there and then by yourself or the seller, they can email a PDF of the settled figure and everyone is happy

 

[Deleted member 6183]

I recommend you take a loan out for the balance and pay it off, then sell the car. That's the best course of action imo. Giving it to a dealer to sell you'll get shafted as per Doodle's comment above.

This doesn't sound like good advice.

He will pay settlement interest on the HP and then the same again on the loan, potentially a larger amount on the loan if there is a balloon payment to borrow as well.

 

[HumberMart]

The only real choice is between a private sale and the likes of Webuyanycar etc etc.

You will find places that give maybe about 5% or so more that WBAC, but you have to accept that the price that they offer IS close on the actual market price of the car.

The WBAC model is now so common, that the current values of used cars is being led by those merchants, when it comes to popular brands/models.

Most people who struggle/hate to sell privately have an over inflated expectation of what their car is worth, so they always have a bad experience.

If it's a sought after car, then selling direct to a retail dealer is likely to yield the best price. However I've twice used WBAC to buy my used Mercs, as their offer was better than the Merc main dealer, once you took into account the ability to haggle with no px, or use a drivethedeal type broker.

Most people struggle to accept that a £40K Merc that you paid £35K for new (after discount), is only worth £25K after a year or so.

 

[KennyN]

I purchased my last car (Saab Aero) which had outstanding finance. The seller got a settlement figure and we subtracted that from the final selling price , we then went to the finance company (Black Horse in East Kilbride) and i paid the balance off whilst he was with me and i took a copy of the settlement documentation.

A bit of a PITA for the buyer but if the car is worth it , to him , then he will put up with a couple of hours of inconvenience.

The only downside , for the seller , is that it gives the buyer some extra leverage when negotiating his price with you.

Kenny

 

[John Jones Jr]

This doesn't sound like good advice.

He will pay settlement interest on the HP and then the same again on the loan, potentially a larger amount on the loan if there is a balloon payment to borrow as well.

The OP wants rid of the car...

 

[ash59fifty-uk]

The OP wants rid of the car...

Another thought-

If a finance term has passed the halfway mark they can just hand it back can't they?

I.e, 5 year term, passed 2.5 years

 

[Deleted member 6183]

The OP wants rid of the car...

That is clear.

 

[c63chris]

I have that my main dealer pays more than the webuyanycar type outfits. It's worth a call. Also the hardback option above.


Sent from my iPad using Tapatalk

 

[John Jones Jr]

That is clear.

And your suggestion is? Or did I miss it in the previous posts, if so sorry.

 

[flowrider]

Another thought-

If a finance term has passed the halfway mark they can just hand it back can't they?

I.e, 5 year term, passed 2.5 years

No, you have to pay over half the original finance amount before you can do a voluntary termination.

 

[John Jones Jr]

Another thought-

If a finance term has passed the halfway mark they can just hand it back can't they?

I.e, 5 year term, passed 2.5 years

I suspect the OP reckons he's got equity in the car and wishes to maximise it as best possible?