Mally K

I have shook hands with a fella and have said that I will buy his car off him. The only trouble is it still has £4k of HPI left to pay on it - he can't pay this off until the car is payed for. (Or at least £4k)

What is the best way forward ? I trust the man selling it, but not enough to pay him for the car, and take his word that he'll pay the finance off.

I was thinking the best option would be to pay the finace company off ? It is Black Horse so its a reputable company - I'm assuming if I pay the finance off they will send me an invoice and proof that there is no outstanding finance left on the car ?

Any help advice appreciated

frisby

Hi Mally,

I experienced this the last time I bought the car, and to be honest buying a car of someone in such circumstances is doing them a big favour. Here are your two options:-

Get the owner of the car to ring the finance company and get them to send out on official paper the settlement figure for the vehicle, and maybe even get the finance company to ring you so that your are sure it is as the owner says it is. Then on the day of collection make out a bankers draft or cash to the value of the purchase price less the finance figure and give that to the seller, then -

1. Take a stamp and envelope and a little letter you have drafted, put a cheque for the settlement figure in the envelope and then both go to a post box and post the envelope to the finance company.

OR

2. Ring the finance company and pay the settlement figure over the telephone via debit or credit card. If you are paying on a debit card, make sure you ring your card company earlier that day letting them know the value of the debit card transaction as sometimes it can be rejected if it is a large amount. On paying this amount the finance company can then let the owner know that the payment was successful.

If you send a cheque or pay the finance over the phone, request confirmation of payment and that the finance is cleared. Make sure it goes to your address and not the sellers.

In both circumstances I would then be taking the car home with me. The last car I bought the owner didn't want me to take the car until he had written confirmation from the finance company that finance was paid off. I told him I would walk away as I wasn't forking out £10k, pay off his finance and then not get the car. He soon changed his mind as he must of realised he wouldn't sell it privately any other way.

Hope this helps

Stu

midget1500

didn't read stu's reply as i'm hungover but i too posted on this recently as i bought a car with o/s finance.

basically, i paid his finance off (got a letter saying it was clear) and him the difference. the risk of course was that during some point, i.e. waiting for money to clear (a few days) he could have kept the car and i'd paid his finance. it's a real pain and you need some trust.