Assuming your credit profile is
|Car finance rate||XX% APR|
|Cost of credit||£ XXX|
|Total repayment||£ XX,XX.XX|
|48 monthly payments of||
£ 245 /mo
Representative example - Borrowing £5,500 over 4 years with a representative APR of 19.8%, and a deposit of £0, the amount payable would be £162 per month, with a total cost of credit of £2,282 and a total amount payable of £7,782.
Taking your financed car abroad can be difficult. Not only is it logistically complicated, but the paperwork involved can also be a minefield. When you’ve bought a car outright and have full ownership, taking it abroad involves a lot of paperwork but is often fairly straightforward. However, when you’ve bought your car on finance and haven’t yet paid it off, even more red tape is involved. The short answer to whether you can take your financed car abroad is: it depends. Read on for our guide to moving abroad with a financed car.
To begin with, it depends on how long you’re planning to be overseas. If you’re just taking a holiday, then it’s far easier and you’re far more likely to obtain permission from your finance provider. If, however, you are moving abroad permanently (or at least long-term), there’s a good chance that you’ll need to settle or terminate your finance agreement early i.e. before you leave the country. The reason you need permission from your finance provider is that they are the legal owner of the vehicle, at least until you’ve fully paid off your debt. Failure to obtain permission could result in the car being impounded by authorities.
In the event of a holiday, simply contact your finance provider to obtain permission and have them send you the necessary paperwork. This paperwork will often come in the form of a Vehicle on Hire Certificate (VE103B). This certificate is a form of written permission that certifies that your finance provider allows you to take the car abroad. It also contains information about you, the vehicle, and the length of your finance agreement.
If you’re moving abroad and your finance agreement doesn’t allow you to take your car with you, you’ll need to settle the agreement earlier than planned. In doing so, you’ll no longer be contractually restricted and you’ll be free to transport your car overseas as its sole owner. There are a couple of ways to go about this.
If you’re given the all-clear, either on a temporary basis or a long-term basis, there are certain things you must consider. Firstly, you’ll need a copy of lien. A lien is the right to keep possession of someone else’s property until a debt is repaid and/or discharged. If you’re up to date with payments and on good terms with your finance provider, then arranging this should be fairly straightforward.
Secondly, you’ll also need to make sure your car has the right insurance. Despite not being the full legal owner yet, as the legal contract holder, you are responsible for the car’s insurance. You may need to acquire a Green Card, which is proof of insurance and can help in the event of you needing to make a claim abroad.
Thirdly, and this is a general point about driving overseas, get familiar with the local driving laws and customs. It may seem obvious, but it’s important to study the speed limits, road signs and the like before you arrive in a new country. Some countries require that you carry additional equipment in the car, such as a first aid kit, fire extinguisher, and a high-visibility jacket. Doing this research thoroughly will make your (and your fellow road users’) driving experience far better (and safer).
At Carplus, we specialise in making cars more affordable for people in difficult financial situations. We understand that circumstances change, and the terms you agreed to at the start of your finance deal may not be suitable years later. To find out more about taking financed cars abroad or making any changes to a finance agreement, get in touch with us today.