Outstanding Finance

[magnum555]

I've seen a car that I am interested in, but the car has outstanding finance (bmw financial services). Has anybody got any experience from either selling a car with finance or buying one with finance outstanding?

What would be the best way of settling the amount and how do I confirm the exact amount outstanding. Is there anything else i should be wary of?

Thanks in advance.

[E39 M5]

i bought out 330ci with outstanding finance on it, i just went there checked the car and once happy with everything

called the finance with the owner there paid outstanding amount from my account over the phone and the rest in cash

obviously spoke to finance company before hand and asked if it was ok to do this and they were happy with it

but it all went smoothly for me

[TomM]

I sold my new R32 with outstanding finance, buyer wrote a cheque to VW and gave me cash for the rest. Once confirmation recieved from VW he picked it up. Easy - if you do it right.

[lyricalgangster]

I sold my Focus RS with outstanding finance on it - the buyer and I went into the bank, he did a transfer direct to the finance company(the teller took copies of his passport etc, checked his branch for proof of funds etc) and he paid me the rest in cash...

smooth transaction, but i did worry because of the horror stories...

[Welshbeef]

Simple process either the current owner pays in full to the finance house (after receiving bank Transfer from buyer or as others have said go into the bank together or on the phone he pays the outstanding finance amount to the finance house the rest to the seller )

For big value cars you could use a solicitor in the same way as you would buy a house

[magnum555]

Thanks for the replies, also the owner hasnt got a settlement figure in writing. Should the owner have something in writing?

[TomM]

magnum555 said:

Thanks for the replies, also the owner hasnt got a settlement figure in writing. Should the owner have something in writing?

Interesting, as that would suggest he hasn't asked for one - as when you call for one the always provide it in writing too.

Make sure that YOU pay the finance company and not him, easiest if you have a settlement letter and can be done via debit card or bacs transfer.

Make sure you get the letter stating they have no more financial interest in the car and ensure its removed from the HPI register.