What happens if you have kit on finance and you want to sell it?

[Johnnyboxer]

When u sell it, ud have to let the buyer know that its got finance left in it. U then call up the finance company to change the details to the buyers

 

You can't do that

 

You either have to settle the finance yourself and sell it clear of finance

 

You can get a settlement letter and the buyer can pay off the finance company direct, then pay you the full Vat, plus whatever your equity share is left in the machine

 

You may be able to transfer the finance agreement to the new buyer, however this is unusual and not something I've done in 20 years of arranging Agric Finance for people

Edited December 31, 2013 by Johnnyboxer

[hedgesparrow]

Pretty sure you have to pay the finance off if you sell it

 

if you have finance out and want to sell before the finance ends you have to notifie that you wish to sell they will give you a settlement figure which you then need to clear when item is sold. or they may say that you hand it back they sell it so they clear the finance drawback is it will go to auction so get a fraction what it could be sold for prvatly. and it may be worth more than whats left or it does not reach the figure to clear debt so you still owe the finance company if it makes more they will keep it

[mendiplogs]

if you have finance out and want to sell before the finance ends you have to notifie that you wish to sell they will give you a settlement figure which you then need to clear when item is sold. or they may say that you hand it back they sell it so they clear the finance drawback is it will go to auction so get a fraction what it could be sold for prvatly. and it may be worth more than whats left or it does not reach the figure to clear debt so you still owe the finance company if it makes more they will keep it

 

HI HEDGE your right there mate :thumbup1:jon

[Pommie]

It depends on the loan, if it is secured on the item or a personal loan. If its a personal loan you can sell it and just keep making the repayments

[Marc Lewis]

You can't do that

 

You either have to settle the finance yourself and sell it clear of finance

 

You can get a settlement letter and the buyer can pay off the finance company direct, then pay you the full Vat, plus whatever your equity share is left in the machine

 

You may be able to transfer the finance agreement to the new buyer, however this is unusual and not something I've done in 20 years of arranging Agric Finance for people

 

Depends if it is personal loan or business loan and each finance company will have their own terms and conditions.

 

VAT is usually paid up front.

 

With business finance you will often have to settle the outstanding bill as they technically own the machine until it is paid off.

 

Sometimes you can novate the finance to a new buyer if they pass the relevant credit checks etc etc.

 

As has been said, check your terms and conditions before you sign.

[Marc Lewis]

Sorry, that was not supposed to be posted on your post johnnyboxer, it was meant as a post of its own.

[Johnnyboxer]

No worries

 

You are correct though