Scoobedoo

Hi,

Does anyone know the best way to go about buying a car were the current owner has a HP loan owing? How do you know they are going to pay it back?

Thanks

RLE

iTrader: (2)

I found out exactly what the balance was owing to the finance company.

Got a bankers draft issued directly to them for said value.

Issued a second bankers draft to the seller for the difference

Happy days.

Scoobedoo

good idea. so you called the Finance company direct to get the figure or did the seller?

seems simple.

Subarussian

Just bought a car that was on PCP.

1. Got the name of the finance company from the seller, and agreement number
2. Got a copy of their letter with the settlement figure (from the seller)
3. Ran an HPI check on the car (showed outstanding finance with the above company -- just double checking)
4. Phoned and e-mailed the finance company telling them that I'd agreed to buy the car.
5. Made payment direct to the finance company, with a prior e-mail saying that I reserve the right to pull out of the sale for any reason, in which case they will pay me my money back (they were totally OK with it)
6. Asked them what would happen if the seller doesn't give me the keys or tries to stitch me up in some other way. They said they would call the police and refund my money.

I went ahead on that basis and got a new car sitting outside my house

Good luck!!!

RLE

iTrader: (2)

Yes mate. IIRC the HPI check that I did confirmed the details of the finance company and the balance that was owing.

The bankers drafts seem the easiest way to do things. I even made out the envelope and posted the draft to the finance company whilst I was with the seller that way we both knew it had gone.

I also enclosed something to the effect of "please forward a receipt to confirm full settlement" and this was sent a few days later.

Would certainly never hand the full balance to the seller and trust them to settle the finance unless you knew them well.

Best of luck

highlander68k

The ones you know are the worst!

Some great advice there, proving that the forums really do their part.

billythekid

IMHO its a very safe way to buy a car as you know its been owned by a genuine person and you are not buying a stolen or cat d etc etc. IME you can do a CHAPs payment to the finance co on the day and then get the seller to call the finance company and confirm they have the money and the finance is paid off. Then pay the balance to the owner and thats it. I would just draw up a quick letter saying that the seller has received the balance from you and both sign it.

Alf_Wales

Hi m8 I have done this before and what you need to do is get the seller to print on the invoice that the car has no outstanding finance and sign underneath it.

In the eyes of the law you can then prove that you bought the car in good faith and knew nothing about the finance so the finance company cant take the car off you.

But I would recomend that you do as above.

The Knives are out

Sorry but ignore this advice do as the other posters have said !!

HPI and cover your backside

Alf_Wales

Notice u have cut the botom bit out that says that i recomend that you do as above.

I do not recomend anyone to do this but it is always an option if you havent hpi the car.

as some people wont pay for the hpi it is always a recomendation to get the owner to sign that there is no outstanding finance.

As mentioned above Cover u r own ***

The Knives are out

I just hightlighted the Poor advice

IMHO an HPI check is a must even if the seller shows you finace paper work!

What happens if it has OTHER finance on it !!

Jamesemt

lol its only about £30 isn't it?

Zuby

The guy whom i bought my car from had finance on the car and did get a bit funny with how best to solve this. I suggested 2 ways of resolving the matter :-

1. i give him the difference from what is owed and what he wants for the car. That way i can trust myself to go and pay the balance off.

2. when we exchange the money, we go straight to the bank, he pays off the debt and i then pay him for the sale of the car.

good luck with the purchase.

Zuby

pslewis

It's better to tell the buyer to clear the debt themselves - then buy!!

Pete