buying car with finance negative equity

buying car with finance negative equity

Author
Discussion

Trustmeimadoctor

Original Poster:

12,703 posts

156 months

Friday 10th May
quotequote all
looking at a car and it still has finance on it but the seller is in negative equity, its being sold by a dealer for his friend.

is there any way to resolve the issue without me handing over big stack of cash only on faith that the debt is cleared. i doubt the dealer has the cash laying around to clear his mates debt to pay the finance of first.

i have a feeling this is a walk away job and find another
but as ever its a great spec at a good price.

simon_harris

1,382 posts

35 months

Friday 10th May
quotequote all
is the value of the debt higher than the value of the car?

Trustmeimadoctor

Original Poster:

12,703 posts

156 months

Friday 10th May
quotequote all
yes hence negative equity or should i say the amount owed is more than the amount being asked i dont know how much by
was up a year ago for 4k more than now (Previous sale)

Edited by Trustmeimadoctor on Friday 10th May 16:36

blue_haddock

3,300 posts

68 months

Friday 10th May
quotequote all
It is do-able but it depends on if the car owner can actually afford to pay the negative equity off.

You would need them to have an accurate up to date statement of what is owing.

Basically they call the finance company with you stood beside them, they pay the difference between what is owing and what you are paying for the car and then once they have paid their bit you pay the rest direct to the finance company. You then get the finance company to confirm there is nothing owing on the car and remove their interest in the vehicle.

Definitely risky so unless its a rare car or an absolute bargain i wouldnt recommend it.

MitchT

15,947 posts

210 months

Friday 10th May
quotequote all
You'd have to really want the car to take the risk or, otherwise, as said, get the seller to pay the finance off first. If they can't afford to then I suppose they could use a personal loan to pay off the car finance so there's no longer a loan attached to the vehicle.