Trick

Just a quick question really.

Ive agreed to buy a motor and the guy selling has it on HP. NOw, how do i make sure that he is honest and pays off the HP when he gets the dollars from myself.

Surely just a proper receipt declaring transfer of assets should be ok?

What do you think?

Dracoro

2 payments. One to him and one directly to the finance company. Get a letter from finance company stating the cost to clear the balance. So if agreed sale is £10k and the finance to clear is £7k then pay the finance company £7k and the seller £3k.

Do NOT 'trust' the seller to pay it off himself.

Trick

cheers

AndyC_772

iTrader: (2)

Good advice there. Bear in mind that, legally, the finance company is the owner of the vehicle, and it's not actually the registered keeper's property to sell. To be completely safe you'd need to have the seller clear the outstanding HP first, then buy the car when (and only when) it's HPI clear. Of course, if the car's on HP then chances are the seller won't have the means to clear it, but that's really their problem.

Selling a car that's on HP is a real problem for this reason, it requires an understanding and co-operative buyer. How far you're prepared to accept risk is up to you.