Illegal Car Selling - Finance Car?

I bought a car a couple of years ago privately , the seller did tell me it had outstanding fiance on it , before I bought it I had him get me an up to date balance left to pay

I also contacted the fiance company and explained the situation

they were happy as long as they received the outstanding balance

So I sent a cheque for the out standing balance to them and when they were happy and I had it in writing that the debt was cleared , I gave the outstanding amount of the sale price to the vendor . so in the end we were all happy

If you are in Great Britain, yes, it is!!

If the car is on finance, it is wholly owned by the finance company, until the debt is totally paid off. Therefore, it cannot be legally sold until the finance is cleared.

The law may well be different in the U.S.A., but this is Y!A U.K. and Ireland, after all...

You can legally sell it and repay the finance company what you owe them.

However, many people carry out HPI checks these days and this would pick up that there is outstanding finance. Most people would walk away as if you didn't repay the balance, the company would chase the new owner and they could lose the car and end up with nothing.

So most people would not touch a car with outstanding finance on it.

Yes, in theory the car belongs to the finance company until it is paid off.

No. You could sell it, but if you owe more than the car is worth you are responsible for the balance. And you won't have a pink slip to give the owner until the loan is paid for.

If you owe less than what you sell it for, you can pocket the difference. Just pay off the loan to get the pink slip and keep the difference.

Buddha is wrong. Just don't get stuck selling something and end up in a lawsuit because you didn't pay off the loan!!!

It can be done (people trade in cars to dealerships that have loans sometimes). You'll have to disclose to the buyer that you have it financed, and then call the finance company for a payoff quote and for instructions on how to get the title into the buyer's name.

If the buyer needs financing, you may even be able to pay a loan transfer fee and have them takeover your payments

No it's not, as long as the loan is paid off and you have the title with a lien release, then you are fine. The back doesn't car what you do with the car as long as they are paid on time, get paid or pay off the loan.

No. However you must have the lien holder's permission to transfer ownership. This is a very common situation when someone wants to buy a new or newer vehicle before they have finished paying for their old one.

yes it is as it still belongs to the finance company, so selling it would be theft...in the u.k. at least

yes it is, until all the money owed is paid off it is not actually your car.