buying car with outstanding finance
 

We went to see a 51 reg Peugeot 206 1.4 LX today, and it is in really good condition (atleast to our untrained eyes) and advertised at 5699.

Now, we'd possibly like to buy this car, but there's one problem. The owner bought it on hire purchase and has a bubble payment left to pay.

Now, I know we'd be in a bit of poo if we gave the owner money and she signed the car over to us, but didn't pay the finance company..

Is there a good way around this problem somehow?

Would a contract between us and the seller be good enough, or would we still end up liable with no way of claiming money from the seller should she decide to pocket the money and not pay the financing off?

How do you guys do it?

Don't buy it until the bubble payment has been made, simple, otherwise I can see it going very pear shaped!!!!!

Get the owner to take out a bridging loan to clear the finance, get proof that the finance is clear, otherwise you will end up liable.

Caveat emptor!

(its a 206!?!??! WTF?!?!?!)

Make the cheque payable to the finance company. Simple.

It is not an offence to sell a car which is "owned" by a finance company, however it is an offence to sell a car which is "owned" by a finance company with intent to deprive the finance company of their money. ;)

I'd find out what they owe the finance company and accompany the owner to the bank and wire the cash to the company, and you can then pay the seller any balance due and drive the car away.

Hmm, I thought it would be a bit problematic :(

Shame, we really like the car...

SJ_Skyline: it's for the wife's commute :)

Henrik - anything for a fellow Watford lad :)

WTF, how is it problematic???? :confused:

People are too quick to OVER-complicate things.

It goes without saying that you aren't going to hand over your hard-earned to a complete stranger as you cannot trust them to settle, so all you do is pay the finance company direct, which releases the car fromt he finance.

What is problematic about that?

If you really want the car, you'd be crazy to miss out, just cos there is finance on it.

The other thing you could do is approach a (friendly) dealer and ask them to do the deal for you. ;)

I've bought and sold heaps of cars with finance on them and its not a problem at all.

talizman: Hmm, you have a good point there, might buy it anyway and pay the finance company direct...

Oh well, it's all hypothetic at the moment anyway as for us to buy another car the guy who bought the smart car has to pay us... he's supposed to come pick it up mid next week, so after that we're hopefully in a better position...

As talizman rightly said, pay the finance company direct. Just to uncomplicate things even more. Just give the guy two cheques, one for him and the balance made out to the finance co. Let him deal with the rest. If he doesnt pay off the finance with your cheque, a) hes stupid and b) it doesnt matter to you cos u still have the money.