midget1500

hi folks

can anyone advise me on this?

i agreed to buy a car today but he told me it has outstanding finance (18k). i've agreed to buy the car for ~15k so basically the plan is that i make out a cheque for ~15k to the finance company and he makes out one for the difference. but then i have to wait a few days for the cheque to clear - potential risk - he could run away and i've paid his debt!

so - is there a procedure for this?

we are going to meet in the finance company's offices tomorrow morning and i would like to take the car when handing over cash. i thought about getting my money wired to the finance co or giving them a bankers draft, getting him to do the same and have it all processed in one day. he's obviously nervous that my money might not go through.

cheers
steven

TopBanana

Is this the first time he mentioned the outstanding finance? If he wasn't up-front I'd be very cautious. Ask the finance company themselves for advice.

Iwan

Ask the Finance company if you can each make your payments via CHAPS transfer from your respective bank accounts. It'll probably cost you £20 or so (each) but as far as i know it's instant and can't bounce once it's been transferred.

midget1500

i like the chaps idea - no, he was upfront about the finance once we talked about money.

i was also thinking of making a cheque out to finance co and asking them not to allocate the funds against his debt until the cheque had cleared and so had his, then we can meet in office and exchange keys/paperwork though this might not be practical.

Diablo

midget

If his cheque doesn't clear, you lose £15,000.

Its that simple.

What you want is a joint deposit - all funds go in there, then finance gets cleared and then you get the car.

midget1500

diablo - how do i go about doing that? just talk to the finance company? even if his cheque didn't clear surely i would only lose his cheque's amount and not mine (worse case senario?)

anyone actually done this or is it mad?

midget1500

i'm going to do an HPI check anyhow as well - anyone recommend any online ones? seen the AA - seems mad at 37 quid but worth it i guess!

cheers folks
steven

Diablo

Steven,

If his cheque doesn't clear then the finance coy retain title to the vehicle. They say thanks very much to you for reducing the amount outstanding by £15,000.

A friendly solicitor will hold the cash for you both and arrange payment for a modest fee.

the finaince co may be prepared to hold your funds to account, but I doubt it.

Oh, and yes, its mad...!

D

midget1500

beginning to worry now!

i'll have a chat with the finance co tomorrow and wont hand over any cash until i'm convinced i'm safe. any idea on the solicitor fee?

i've searched the net on this but nothing coming up :-(

this guy seems genuine enough, he's in a catch 22 as well, can't sell the car until he clears the finance but cant clear the finance until he sells the car.

many thanks

cheers
steven

Diablo

Can he not pay you the £3,000 in cash in return for a bank draft from you made payable to the finance company?

you can then both post off the draft to the finance co in return for which you get the car?

Dracoro

I won't pretend to understands the ins and outs of car finance, however, let me get this straight.

He owes finance company £18k
The car is worth £15k
So the guy still owes £3k to the finance company
As far as the finance company is concerned the debt is against the car
So if he doesn't pay the £3k finance, YOU, as the owner of the car will then owe the £3k.

Deal with the finance company to make sure all is well. Basically the finance company will need to clear the £3k AND your £15k before they release claim to the car. If the seller is genuine, he'll understand your predicament and will endeavour to sort this out to your satisfaction in order to complete the sale.

Diablo

Nope, the debt is against the other bloke, "secured" against the car to which they reatin title. If he doesn't pay the £3,000, he still owes the £3,000 (or whatever the balance is) and the finiance company still retain ownership of
the car.

HTH

D

midget1500

magic - thanks for your input guys!

as always, scoobynet to the rescue. i'll talk with the bloke/finance company tomorrow to sort something out - i'm not taking any risks and i wouldn't expect him to either.

i shall keep y'all posted.

many thanks

steven

midget1500

just did the aa car data check (**** me they are the biggest rip-off ever! though not as much as being ripped off for the full value of the car i guess...)

anyhow - everything checks out and it did flag the outstanding finance.

hopefully all goes smoothly tomorrow!

midget1500

this also got me thinking (rare event ) - what constitutes ownership of a car? the keys - nope, the logbook (could just get another one)...?

Apparition

Don't

Dazza01

Nope carn't just get another one as they write to the previous owner first and have to wait for an answer from them, before issuing you a new log book, but all the log book does is state the registerd keeper not the rightful owner, as in this case it belongs to the finance company until its paid in full and they sign it off saying that they have no intrest in the vehicle.

Be wary mate 15k is alot to lose if he decides to do owt funny

tonybooth

Don't know if this is of any help but when I purchased my Ducati last year the guy had outstanding finance with Black Horse.

I spoke to Black Horse and they said the easiest way was for me to pay them by Switch over the phone to get instant clear title. If you both did this then it could work? (If they take Switch)

Cheers

TONY

TopBanana

Why don't you pay the guy £12000 for the car with its outstanding finance, then pay the £3000 to the finance company yourself

Dracoro

edit....not making sense

midget1500

topbanana - there is 18k against the car on finance - i'm buying the car for 15400 so he has to put the difference in.

i've taken advice on this and the general opinion seems to be that he takes the smaller risk and pays me the 2600 and then i clear it all with finance co. i'm going to meet with his finance co later today and see what the options are.

tonybooth - i like this idea - dont have switch but do have visa debit which i guess could be used?

cheers
steven