selling car on fixed-sum loan agreement

[chris.g]

Hiya all, after Melanie suggested I sell our car, currently on a fixed sum loan agg, before our bankruptcy and buying a replacement out of the money-keeping the rest for the OR, I took it to the dealer where we bought it. He run a HPI check and it's coming up as being on HP and he said that he could not legally sell the car on, although he is interested. He did say that the garage had done something similar before but the person was already bankrupt but he wasn't sure how it was done. I was hoping to get it sorted this week as we are filing on 23rd Nov. The agreement is definately a fixed loan and not Hire Purchase. Anybody with a solution on how to get round this? Thanks

Learning as I go along!!!

[smr]

Hi Chris.G
I would check your agreement with the finance company - I would have thought this will clearly state the type of agreement you have. I had a fixed car loan, however the loan was secured against the car and so I couldn't sell it on.
I think the agreement would be the first place to start.
Sharon

[iva experts]

Hi Chris,

I would definitley check your own agreement paperwork, if it is HP it will have Higher Purchase all over the document. If it does end up to be a HP I believe depending on the amount you pay each month, the OR will most likely let you continue making payments.

Best Regards,
IVA Experts
http://www.iva-experts.co.uk/

[chris.g]

Hiya, it is definately a fixed sum loan agreement, that's why I was suprised when the dealer said it was showing as HP on the check they carried out. It even states on the doc's in key financial info 'cash loan' which was, obviously, paid direct to the dealer for payment for the car. Strange and confusing...

Learning as I go along!!!

[chris.g]

I should have said that the car will probably fetch around £9,000 and there is still approx £11,500 left owed.

Learning as I go along!!!

[chris.g]

Ok, I've been on the GE money website and it states that a client with a fixed sum loan for a car purchase IS entitled to sell the car as the car belongs to them and not the finance company. That's who our car finance is with. Does this mean I am definately OK to sell the car on? Any advice?

Learning as I go along!!!

[jpj]

All dealers and many of the car buying public will HPI check your car to make sure there is no Hire purchase money owing on it. I would do a HPI check online to see what shows up on your car. If it shows up on a HPI check as finance outstanding it is going to be very tough to sell it anyway.

[chris.g]

The dealer carried one out today and it is showing. The finance is not HP though so do they flag the car to make it diffecult to sell? It must be possible as Melanie suggested it, just knowing how to do it....

Learning as I go along!!!

[MelanieGiles]

If it is a fixed-term loan agreement, they have no right to have put a HPI flag on it - but I know of some creditors who do just to make it difficult for a customer to sell the vehicle. Legally, title to the vehicle passed to you as soon as the transaction was agreed, so I suggest you have a work with GE to sort this out.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[chris.g]

Thank Melanie, don't want to be a pain, but will GE not get suspicious if we request that the HPI is removed?

Learning as I go along!!!

[MelanieGiles]

They might - but what difference does that make? The car is yours to sell.

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp

[chris.g]

Thanks Melanie, I will ring them tomorrow first thing, see what they say. Don't suppose you have any idea how long it would take to remove the HPI flag? Just incase they say it takes longer than it actually does...

Learning as I go along!!!

[Storm]

GE will not normally remove the Outstanding Finance / Interest flag.

If they drag there feet it can take months as you need to go through a process of proving they had no reasonable cause to register an interest.

[chris.g]

Thanks for that Storm, not really what I wanted to hear! I'll still give them a ring, the car will be claimed by the OR when my husband files for Bankruptcy on the 23rd Nov anyhow as it's going down as an asset. Oh well, just have to plead the case for a replacement car with the OR. Thanks again everyone

Learning as I go along!!!

[MelanieGiles]

Storm

What right to these companies have to exert incorrect proprietory indications over these vehicles? There are other companies that also do this and it is just not right!

Regards, Melanie Giles, Insolvency Practitioner for over 20 years.

To have me propose an IVA for you, please visit:
http://www.melaniegiles.com/ivaEnquiry.asp

See customer feedback at:
http://www.iva.com/iva_companies/IVA_Advice_Bureau.asp