jameswrx

iTrader: (4)

As above..

What's the procedure when a car has finance relating to the car (ie owned by the hp co.) if it's for sale second hand.

Never bought one like it and the owner needs a certain amount to clear the loan. Obviously it's quite worrying to just take their word they'll pay it off.. presume if they default, bye, bye car?

compshack

Make 2 payments, one to the finance company direct, then one to the owner for the rest.
You need to make sure that the finance company is paid, to assume that the owner will pay is not good enough. Speak to the finance company direct if you can.
Good Luck

Steve vRS

Look for another car is the safest bet.

Steve

chris singleton

Friend of mine had to do this recently.

There's no need to walk away from the car.........lots of people have finance on cars!

As suggested, make one payment direct to the finance company and the balance to the seller...........Do not take the sellers word that they will pay it off - even though they are probably genuine unfortunately we live in a world where you should trust no one.

Chris

robby

so what happens if the seller owes more than the car is worth - he says he'll pay X amount and you pay X amount which both total the settlement.
The seller then hands over the car and you hand over or post the cheque - the seller then backs out of sending his cheque therefore you've paid off X amount of his debt and the finance company still owms the car as it has outstanding on it?

just wondering what would happen

Terminator X

iTrader: (7)

^^ Stay clear of that one!!

TX.

RS Grant

Yea, stay clear of that one.... or.... if you MUST have that particular car, then get him to pay his share, then phone Finance Company to check the balance left is the agreed amount for you to pay and then clear it off.


Cheers,
Grant

misty

Don't talk to the finance company! A few years ago I was looking to buy a lotus esprit, it had outstanding finance still on it. The guy said he'd pay it off with my money. Speaking to the F/C they said " had I not asked them what would happen if he didn't pay off the existing finance then they wouldn't proceed with trying to get the money or the car off me as I didn't know it was still under a finance agreement" but because I had asked them, then if he defaulted then I would be liable for the debt because I knew there was unsettled finance on the vehicle!! needless to say I didn't proceed with the deal.
Dave

CaptainJohn

AFAIK its illegal for someone to sell a vehicle with outstanding finance on it. It must be cleared before it can be sold because you don`t own it the finance company does. So be very careful. Never buy a car with outsanding finance on it because it could be taken away from you with no recompense. HPI first and if it ain`t finance clear just walk away.

jameswrx

iTrader: (4)

Thanks for the help..

Turns out there was a missunderstanding. The guy bought it at the end of his hp period.

I even got the number of the hp co. and a reference no. from an experian check. I rang the co. and they said it was paid off in full.

misty

All's well that ends well then
Dave