Has any one bought a car that has had outstanding finance??
 

Hi - i am soon to be an STI owner - i have found a car that i hope to buy, however the owner has been upfront and said that he will be settling the finance (obviously when i purchase the car). Has any one else ever been in the position and how did they go about buying the car? the guy seems genuine enough but i dont want to pay his finance not be the owner or end up in any position where i am not going to be the owner of the car due to the finance not being settled??

Basically can any one give meadvice as to doing this the corect way?

Any help would be appreciated!!
Pete

I didn't think he can legally sell it as if it is financed he doesn't actually own it....

don't buy unless the finance is settled up front...

yer - the idea is i pay the finance and give him the difference or there abouts? Hes going to the phone his finance company and ask.

I think that is one of those pays money/takes chance type things.

I think its probably quite common for a car to be sold with outstanding finance, and there isnt a realy good way of making sure the old 'owner' settles it as soon as you drive off.

I think you are on the right lines with paying the finace co directly. He needs to find a settlement value, you then write a cheque for this ammount and send it to his finance co. I think thats what i'd try.

Cheers,

BEn.

This is what i did 2 weeks back...
 

Me..Me..MEEEEEEEEEEEE!

I bought my STI 8, 2 weeks back...guy said it had near 10K finance...I did the following to get around it...

1. Got the guy to call the Finance company and ask for them to allow me access to the account.
2. I called and asked them to fax me a setelment figure over to me along side the chaps payment details (as the payment has to go from a bank account)
3. I then went to the sellers house and handed over the cash for the car, got my copy of the log book and wrote out a reciept for him.
4. Took him to the bank and watched him put the money into his account
5. Then watched him do a Chaps transfer to the Finance company at 9am, and took a copy of the reciept and drove away the car.

I called the finace company the next morning, and they said all cleared and they faxed me the conformation, however will take 5 days to send it in writing in the post.

So...here i am...an owner of an Black STI... :D :D


If you need any more help advise...pm me...

--Sam


The family i bought the car from seemed like nice people, hence i went through with it.

You need to know what you are doing, if it goes pear shape and the payment does not reach the finance company for any reason you may end up getting shafted...

exactly right in the post above.


did near enough the same thing a few years back with a 306 Rallye.




john

Cheers Guys for the help!! akes me fell much better!!

Instead of watching him do this, do that etc, can't you just call up the finance company together, you pay the outstanding amount and give him the rest?

Is it Hp on the car or has he taken out a personal loan from the finance company, you can find out by looking at his agreement form, if it says at the top, personal agreement plan or similar then its a loan and not HP. therefore the car has nothing to do with the finance company if he dont pay them, just a thought

Who is the finance through???

If its IM like mine, then chances are, they own the car till every last penny is cleared.

I see no reason why he couldnt show you the agreement, so have a look in the terms and conditions, it should tell you in there.



John

You may be reight he di mention somthing about a personal loan with the company, but with a finance company?? il see what they come up with Monday! its such a pain in the backside because bar that the cars perfect!! :)

Pete

Think you need to make a judgement call on what the seller is like really - there are quite a few ways you could be shafted even being careful if he is dishonest.

Ask yourself - does the car seem unusually cheap ? does the seller look desperate for the money ? does he look the sort of person who could afford a decent car ( e.g. nice house in a decent area etc... ).

You can only pay via a CHAPS transfer from a Bank account, and if you are buying the car cash, you have too put the cash into his account first then transfer it.

What if he calls the wong number, what if its a friend of his sitting answering the calls in the Finance company....Yes there are lots of what if's...


This is maybe usefull:

http://bbs.scoobynet.co.uk/showthrea...72#post5822072

But the above is what i did...

PS: how much did you buy the car for? (PM me if you prefer)

I just sold my old car which had some finace outsanding. I got the finance company to send the buyer a form with the outstanding money and an account number. The day he came to pick up the car he CHAPs the money to them and then he brought cash with him for the rest. I then phoned the finance company who agreed the account was clear and I was now the sole legal owner of the car, they confirmed this to the buyer too. We then signed the V5 and it was his car. All quite simple realy. I then got a letter a couple of days later to confirm it all and I sent him a copy.

If you believe that the vendor owns the vehicle (an HPI check isnt required no matter what an aggrieved finance co. may tell you); or you have been assured that outstanding finance has been settled; then you will aquire good title to the vehicle. This seems to surprise people but the law (Hire Purchase Act 1964) is quite clear.


Simon