By Eoghan Flynn · Updated
1. Identify the agreement
Check whether the vehicle is on HP, PCP or an ordinary unsecured personal loan. HP and PCP involve the finance company’s ownership interest until completion. A personal loan normally leaves you as the car’s owner, with repayments continuing unless the loan is repaid.
If you are unsure, ask the provider which settlement and sale conditions apply. Do not assume that an agreement is clear just because only a few monthly payments remain.
2. Obtain a settlement figure for the proposed sale date
Ask the lender for its current settlement amount and how long that figure remains valid. The figure can differ from adding up the remaining instalments, particularly where a final payment or early-settlement terms apply. Use the provider’s written figure rather than a calculation of your own.
For our first valuation, none of this paperwork is required. If you want to proceed, Eoghan will explain what information is needed to verify the settlement. Do not put finance agreement numbers or bank details in the general comments box.
3. Check the amount left for you
Compare the agreed car price with the verified settlement. If the price is higher, the difference is the balance due to you. If settlement is higher, there is a shortfall to resolve before completion.
For example, an €18,000 purchase price and a €12,500 settlement leave €5,500 for the seller. If settlement were €19,000 instead, there would be a €1,000 shortfall. These figures illustrate the arithmetic only; they are not offers or a promise that a particular lender will accept an arrangement.
4. Agree the payments and keep both sets of records
For a financed car we agree to buy, Give Me The Reg verifies settlement, pays the finance provider directly and sends any remaining balance to the seller by AIB bank transfer. The lender’s requirements and any shortfall must be resolved before completion.
Keep the purchase receipt, ownership-transfer confirmation and the lender’s confirmation that the agreement has been settled. Ask the lender about any final scheduled payment and wait for its instructions before changing payment arrangements. A sale receipt and a closed finance agreement are separate records.
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