Is it possible to sell my car, buy another& repay finance as normal?

[heretohelp]

Hi,

I understand this is probably a stupid question but im wondering can I do the following without breaking the law?

I have a one year old car, it is now too small for our family requirements and I am wondering can I sell the car, buy another with the cash and continue to pay my existing finance agreement as normal?

I cant sell the car for the amount I owe on it and cant come up with a shortfall, but I am able to meet repayments .

Any advice would be appreciated.
Thank you.

 

[ACA]

You could be landing someone with a whole heap of trouble is you do what you suggest - should you default on the repayments, the finance company would seek to repossess the vehicle and would take it from who ever you sold it to - assuming that the car is the collateral.

There are two types of finance - one is secured on the vehicle, the other isn't. If you had to give you registration when getting the finance, then the vehicle would usually be the collateral - the likes of Opel Credit, Ford Credit, GE Money. If this is the case they may be willing to change the registration that they hold but would be unlikely to do this is the replacement vehicle costs less.

Hope that helps.

 

[heretohelp]

You could be landing someone with a whole heap of trouble is you do what you suggest - should you default on the repayments, the finance company would seek to repossess the vehicle and would take it from who ever you sold it to - assuming that the car is the collateral.

There are two types of finance - one is secured on the vehicle, the other isn't. If you had to give you registration when getting the finance, then the vehicle would usually be the collateral - the likes of Opel Credit, Ford Credit, GE Money. If this is the case they may be willing to change the registration that they hold but would be unlikely to do this is the replacement vehicle costs less.

Hope that helps.

Thanks for the reply. Yes I think it is secured on the vehicle. I cant see a way of selling my own as the price of cars has plumeted .
Oh well, guess I will just have to weather the storm.
Thank you .