Hi BMC,

I don't think you'll want to sell the car until you've completed the 48 month minimum payment term and have moved on to dealing with your equity liability.

I'm sure your trustee will be delighted to bring your trust deed to an early end if you're able to after that 48 month period has been completed, although (as always) it will be best to talk to them before taking any particular course of action.

Hi TDA,

Thank you very much for your reply.
Yes I have been thinking about this over the past couple of weeks now and I think I will hold off until I have finished the legal 48 month has been completed.

I have had the car valued and it is over the expected equity price. Would they want the full sale value of the car or just the amount I am expected to pay for the outstanding equity?

Do I also need to declare how much the car is worth or who I sold it to? Or can I just simply pay the equity balance?

I will call them once the 48th payment has been paid.

Thanks again,

BMC

During the 4-year period that starts with you signing the Trust Deed you are obliged to pay over any assets/windfalls that you may receive, so if you sell the car within that period then they will probably ask for evidence of how much it was sold for, may check an online valuation to ensure it was sold for full value and request the full amount be paid over.

It's an unusual situation to be honest with you, as I don't understand why they have agreed to allow the car value to be used to cover your house equity. It is a separate asset in its own right and at least part of its value should really be being gathered in anyway. Best just stick to what has been agreed previously rather than risk them changing their mind on this point, I'd say.

Hi Kevin,

Thank you for your reply. I will be waiting until after the 4th year has been completed before I even consider selling my car.

My question is once it's sold would they expect me to hand over the full price I sold ot or just to pay the remaining equity balance?

I appreciate your thoughts on this.

BMC

Hi BMC,

If it's agreed that there's just a fixed amount of equity left to pay, then I'd expect you'd be able to keep any surplus.

You should however get this confirmed by your trustee prior to selling the vehicle so that you know exactly where you stand.

Hi TDA,

Yes it is a fixed agreed equity amount as per the original agreement.

I will contact them directly once the 48th month has been paid and then put to them I sell the car.

Thank you again for your help.

BMC