kimera

buying a scooby, guy bought from new and got finance on car. HPI shows finance outstanding but if i buy car and he uses money for someat else, i get his debt? what can i do to prevent this, he says hes going to pay off finance but thats no guarantee is it?

malvinas

Don't buy it is the best advice I can give. the finance company could repo it and you would be left with nothing if he doesn't pay them off. Or left buying the car back for thousands more £££s off them.

MattW

buy the car less the finance settlement figure, then settle it yourself, or go with him to the dealership to settle.

kimera

unless i make the cheque/draft out to the finance company?

Ian E

iTrader: (1)

Would definitely not hand over any money until the HPI report shows finance clear. Isn't it illegal to sell a car thats still on finance?

Mr.M

True, he infact does not have any right to sell the vehicle without settling the finance first.

Ian E

iTrader: (1)

Kimera,

Mines HPI clear

Glad you've found a suitable car. I'll just have to keep mine

Cheers,

Ian.

kimera

bet your gutted m8 couldnt bring myself to try to prize it off u no just a little cheaper, my belts been tightened (mrs said)

kimera

well how the hell r u supposed to clear finance, if u aint got the cash from the sale ?????

kimera

could i just make draft out to finance company or should i ring em, but then they might block sale and im sure hes genuine

malvinas

I reckon the advice above is the one- pay him the amount for the car less the outstanding finance.

kimera

as if, i dont want his crappy finance deal do i, i want my nice new on at low interest!

malvinas

use your new finance to pay off his old finance- that was the plan, personally I would pay cash. Finance is a rip off.

Pogue

Mr M, that is total b*lls, don't post if you have no idea what you are talking about, it is perfectly legal to sell a car with finance outstanding.

It becomes illegal if he does not pay up after a short period of time (varies between finance companies)

kimera

thanks pogue, but this aint getting it any clearer Suppose i better just call HPI and ask them, then call the finance company and ask them. any1 actually done this? im guessing most second hand nearly new cars have finance attached!

Chins

The guy you are buying off should be able to get a settlement figure in writing. You could then send a cheque to the finance company yourself and clear the finance - that would take a few days. Another way would be to do a chaps payment - not tried this on someone else finance deal myself. That is done within a few hours. Pay the guy the difference and drive the car away.

I certainly wouldnt walk away from the car if it has finance on it as long as the seller declared it from the outset. Most people dont have the cash. I didnt when I have sold my STI 7 and RS4.

I assume you have viewed the car at the seller house and everything else checks out. So dont worry too much.

Jonathan

kimera

yep, everything is tickety boo as far as that goes, home address on log book etc he is definately genuine, no questions. Just thinkin of ways to pay off the cash, maybe i could get him to get a settlement figure then i could pay them over the phone by switch or someat!

[Edited by kimera - 3/30/2003 10:05:45 PM]

Pogue

Chins has got it spot on.

Reffro

The accepted method for handling this is very simple.

The seller needs to contact the finance company to get his settlement figure. You then both go the finance companies local office, and you pay the outstanding amount on his account, for which you will receive a receipt of payment. Deduct what you have paid to the finance company from the overall price and go the nearest branch of your bank and transfer the balance into his account. Finance company is then happy, you are happy its been paid, and he's then sure he has his cash, take care of the rest of the paperwork and drive off in your new car.

Its a ***** ache going to the finance company's offices, but you'll both be covered this way...

Mr.M

The title of ownership will belong to the credit company until they receive full payment or the return of the goods. Therefore he does not own the goods to sell.

I've just checked a number of HP agreements i have and they all say the same thing.

Carl Davey

iTrader: (3)

This happened to me and this is how i got around it, i also believe that this is almost foolproof. Feel free to point out any flaws though.

Btw, the finance outstanding on my car exceeded the amount i had agreed to pay for it which complicated things even further.

This is what myself and the seller did following agreeing the price i would pay for the car:

1. Seller contacted finance company and got them to send out a settlement figure in writing which i saw.

2. I had a bankers draught made out to the figure myself and the seller had agreed for the car.

3. Seller also had a bankers cheque made out to cover the difference between the two figures.

4. Both cheques were put in an envelope along with a photocopy of the letter from the finace company stating the settlement figure and also a covering letter from the seller to explain.

5. The seller agreed to let me post the letter to the finance company without his supervision although yours may not feel the same way. Tis probably best if you both see the letter being posted.

6. The seller later received a letter of confirmation of payment of the settlement figure from the finace company which i recieved a copy of.


So there you go! Covers all bases (i think ) and no need to go travelling to offices etc. Now go buy the thing and enjoy it!

[Edited by Carl Davey - 3/31/2003 12:48:03 AM]

R.B.5

Theres nothing wrong in selling something with finance outstanding MR.M, if you part ex your car which has finance its kinda the same scenario. I was thinking of selling mine (not anymore) and have finance outstanding. How do you think people are supposed to manage if they dont have the funds

malvinas

just buy a car off someone who can actually afford to own it. Why mess around with a car someone had on finance? There are plenty of scoobs flooding the market owned by those who can afford them outright. I always feel a bit suspicious of finance cars . I wonder if they can afford to service them properly.

kimera

what a stupid comment, dont you think that 90-95% of all new cars are bought on some sort of finance. Who the hell has 22k lying around!

[Edited by kimera - 3/31/2003 9:34:39 AM]

malvinas

not really stupid...there are a lot of people whocan afford to do it outright. 22K a lot of cash??? I made a hell of a lot more than that out of the profit on selling some property in the South East. In any case the intelligent would probably use a remortgage/equity release to fund a car purchase .

Stupid comment or not (not I believe) the fact is there are a lot of scoobs out there for sale with no finance attached. If the whole thing seems like a hassle just buy one of them.

chiark

But then you're paying for your car over the term of your mortgage?

kimera

malvina, not all of us are lucky enough to have that kind of cash lying around, should i say. Yes, it would be better to use a mortgage (virgin 1) or similar. You get the cash at a lower rate and you can take it over a shorter term say <25 years and its secured against house rather than car so wont show up on HPI.

malvinas

no you don't pay it off over the term of your mortgage- you merely use it as "gearing" against the cost of the car and make your paymentsas normal. You pay of that portion of the mortage early (over payments etc) and the whole thing costs you a lot less than trditional finance.

I realise that not everyone has the cash (personally I wouldnt spend 22K of my cash on a scoob in any case).You can get a nice one for half that these days if you want a classic. The point is there are many cars not on finance so if its a hassle buy one that isn't.

kimera

DEFINATIVE ANSWER (JUST DONE IT)

Finance co have no probs with him selling before payment, only becomes a problem if he doesnt pay balance within period set out in his agreement. He calls finance co and tells em whats happnin, they give him a reference, i call with same ref, pay balance by switch, job done. Should both get a letter confirming account is closed and i pay him difference in cash. Finance company release VRM as secured to them, jobs a good'un. Thanks ALL