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Discussion Starter · #1 ·
I have applied for the loan from the Scottish Government for 28k and its been approved.

I have searched around for an answer to this qs but have not found it anywhere.

I want to know what happens if I want to sell my electric vehicle in 2 or 3 years time. Can I sell it and get something else but keep making payments to the SG? Or do I have to pay off the loan before I can sell or trade the EV for another EV? Is there any restrictions?

Apologies if the information is already available on the forums. I did search but didn't find anything related to that.

Thanks!
 

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24 kWh Nissan Leaf; Tesla Model 3
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I'd have to read the loan small print, but if it is an unsecured loan you could sell the car and continue paying off the loan.

EST seem to be happy to consider early repayment, so that would be worth considering if you'd prefer to clean this off the books (e.g. for mortgage application)
 

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I'd have to read the loan small print, but if it is an unsecured loan you could sell the car and continue paying off the loan.

EST seem to be happy to consider early repayment, so that would be worth considering if you'd prefer to clean this off the books (e.g. for mortgage application)
Section 9 of the agreement gives reasons that the full balance can/will become due. Section 9.10 states that if you somehow cease to be the owner then the whole balance can/will be due.

I’m sure nothing would happen if you didn’t tell them, but officially you’ll start paying interest at the “default” rate after that point.
 

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Section 9 of the agreement gives reasons that the full balance can/will become due. Section 9.10 states that if you somehow cease to be the owner then the whole balance can/will be due.

I’m sure nothing would happen if you didn’t tell them, but officially you’ll start paying interest at the “default” rate after that point.
That’s interesting. I’m in the process of applying and asked the same question during the ‘referral interview’. I was advised that I would just continue to pay back the loan if I’d sell the car. Considering its interest free, you’d be mad to pay back early.
Where could I find the term agreement - I have not applied as I still to have to sell my existing car.
 

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That’s interesting. I’m in the process of applying and asked the same question during the ‘referral interview’. I was advised that I would just continue to pay back the loan if I’d sell the car. Considering its interest free, you’d be mad to pay back early.
Where could I find the term agreement - I have not applied as I still to have to sell my existing car.
You'll be sent the loan agreement after you apply and are accepted (along with a loan offer letter). It's full of personal details so I can't share it wholesale. Note that you're not committed at that point, although you get 10 days to accept the loan, and 4 months to claim the funds from the point at which you are accepted, and as part of the application process they'll perform a hard credit search so if you're applying for other credit you may wish to time your applications appropriately.

The relevant sections are as follow:

9. Termination of this Agreement

If any of the events listed below occur then, upon the expiry of proper notice, we shall be entitled to demand immediate repayment of the outstanding balance of the Loan under this Agreement together with interest on the outstanding balance of the Loan at the Default Rate from the due date for payment of the outstanding balance of the Loan until payment in full of the outstanding balance of the Loan, which interest shall be payable by you on demand, cancel this Agreement, withdraw our offer of the Loan and/or reduce, suspend or withhold payment of the Loan,:
9.10
at any time during the period of this Agreement, you sell, part-exchange or otherwise dispose of the Vehicle or otherwise cease to be the owner of the Vehicle.
Default interest is defined as Bank of England base rate plus 2% elsewhere in the agreement.
 

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Discussion Starter · #6 ·
Ah yes. I had to dig out the agreement and yes it does state that the loan becomes due and immediately payable if I cease to be the owner of this car due to sale or swap or anything like that. Hmm.

Thanks for the help!
 
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