Aiming to buy my first Scoob privately but there is a snag. The seller has finance left on the car equal to the purchase value and the Finance Company (International Motors) insists that the loan must be paid back before the car can be sold privately. This creates a problem as I have to trust the seller that any money I pay will be used to clear the finance otherwise I will be paying for a car and getting the outstanding debt that comes with it.

Possible solution - Use a local dealership as a third party. Draw up a basic contract with the intentions of all parties and get the seller, and buyer (myself) to sign and get the dealer to sign as witness. The dealer then holds the keys until the transaction is complete. The transaction will involve me paying in a bankers draft made out to the finance company at a bank with the seller present. When the finance company fax through confirmation that the debt is cleared then the third party dealership releases the car to me. To get the dealership to act as third party I will pay them to undergo an inspection and HPI check on the car and possibly pay an extra nominal fee for their actions should they request it.

Does this have legal weight, is there anywhere the seller can still fleece me, is there an easier way to do this?? I’ll be getting the car for a good price if I can find a way around this.

Anybody else been in this situation? What is the best way to get the deal through so that both buyer and seller are as protected as possible? Any suggestions would be very much appreciated.

Could you not give him a cheque payable to the finance company, solving all problems in one go :D

Suggest a call to your local CAB

MK CAB

[Edited by Paul Habgood - 8/27/2003 9:45:44 AM]

Pay the finance company yourself. Get him to call and explain the situation and authorise you to talk to them, you pay the finance company direct and then collect the keys. They may even have a local office you can pay your bankers draft into so that you both go along and you come home in your new Scooby.

This has happened numerous times before see below


http://www.scoobynet.co.uk/bbs/threa...hreadID=193318

J

[Edited by jpmason33 - 8/27/2003 9:47:05 AM]

The way your thinking of going about it seems safe. i was in the same situation when i bought my Landcruiser. the guy still owed £6000 to the finance company so i had a bankers draft made payable to the finance company with him present.. gave him the bankers draft and the remaining monies from the agreed price and took the motor from him. That way even if he doesn't send the bankers draft to the finance company he cant clear it himself and i havn't paid him what he owes the finance company so if they do chase me up i can still pay them off. When i gave him the bankers draft he posted it to the finance company in my presence.
I think the way i whent about it is safe enough and maybe easier? :)
Hope you find a way your comfartable with..

Franko

Wow! Impressed at the speed of responses on this board. Thanks for your replies so far, they have been really useful and given me a bit more confidence to proceed. Bankers draft to International Motors seems the eay to go but if I can get Subaru in the loop as a third party as well then even better. I'll let you know how I get on.

Cheers

Wait till you drive the car :D

Not very helpful, but no-one else has said it so..............
http://members.lycos.co.uk/elffster/...elcomeblow.gif

Just make sure you have proof of purchase of the car BEFORE you pay off the HP !!!

Jza

There is another snag in the purchase which I've just come across. As the guy was going to give the car up to the finance company before I came along he has let the insurance and tax expire. To get a new tax disk he needs insurance. For me to get a disk I need proof of ownership. I don't want to buy the car without tax as if the worse happens and it gets nicked, I'm stuffed. His old insurance company won't let him take out anything shorter than an annual policy (so he says) and he is reluctant to do this. Is there an easy way around this or am I going to have to insist that he gets it taxed and then claims back 12 months insurance costs after the sale?

Thanks for the welcome note as well. Fingers crossed I get these issues sorted and become the proud owner of my first Scooby soon!

if this guy wants to sell his car that badly let him sort out all the complications mate, there are a few scoobs for sale in autotrader all the time, dont forget your buying he should make life easier for you. its not your problem

welcome btw :)

Valley Boy,

Email Me.

Cheers

WB

Update for anyone who wondered how this ended........

Done it! Deal completed. Proud owner of a UK300 with PPP!

Followed the plan suggested at the start of this thread but didn't have to pay the dealer anything to hold the car. They were happy to help for free which was good. The previous owner agreed to tax and insure the car prior to purchase as well, and sign a contract giving me certain guarantees around the purchase.

Sounds too easy? Correct! The only problem in the whole thing was the inconsistency of information from International Motors. They were an absolute nghtmare throughout and the only thing that would prevent me from doing this kind of deal again. Whether I was allowed to make a direct payment to clear the finance and how I was allowed to do it changed depending on who I spoke to. I couldn't speak to the same person as they don't have that capability??? Some agents even refused to speak to me even though I was authorised by the owner to access the account and had already made the payment to them!

To sum up. The approach works and gives you virtually as much protection as you have in any private purchase but take some anger managment classes first if International Motors are involved!

Thanks again for the helpful advice. If anybody else out there is planning a similar deaI then feel free to email me and I'll be happy to share my experience (good and bad!).

I'll be trying to shift this newbie tag over the next few weeks so see you around on the boards!