Buying a car which has finance left

[Too Late]

Hi

What's the best course of action when buying a car which still has finance on it still.

So the car has 10k left on as finance and I will be paying him that amount to buy the car. How do I ensure the finance is cleared when I pay him the money?

Shall I go to a bank with him with the cash pay it to him and then he said he will pay the finance company..

Who is liable if I buy the car but he doesn't clear the finance?

Thanks
N

[mattshiz]

You pay the finance company, don't let him 'pay' it as chances are he won't and your £10k car will end up costing you £20k.

[Welshbeef]

The beauty of non secured finance is the way to go makes such situations irrelevant as the seller has the cash and its up to him if he pays off the finance there is no comeback on the buyer.



OP as others have suggested the seller needs to give you the finance co details so that you can pay £x to them as a chq and any extra to him cash

[Clinton Baptiste]

I bought a car with finance, I paid the seller then he called the finance company up in front of me whilst on the loudspeaker so I could hear everything and payed off what he owed. No problems. :-)

[Zwolf]

Too Late said:

What's the best course of action when buying a car which still has finance on it still.

Best course of action? Don't. Vendors should clear it before offering it for sale, usually using a short term unsecured loan (vehicle finance is secured against the goods).

Too Late said:

So the car has 10k left on as finance and I will be paying him that amount to buy the car. How do I ensure the finance is cleared when I pay him the money?

Pay it to them yourself. Current owner calls them to settle to get through DPA requirements, gives them permission to speak with you, you make payment directly to them. Any positive difference between the agreed sale price and finance settlement you pay to the vendor.

Too Late said:

Shall I go to a bank with him with the cash pay it to him and then he said he will pay the finance company

Definitely not. Worst possible course of action. Great way to end up with no car, no money and whole load of legal headaches and expenses.

Too Late said:

Who is liable if I buy the car but he doesn't clear the finance?

You are. Finance company could come and repossess the vehicle from you, leaving you to recoup your losses from the seller through legal action. The "goods" remain the property of the finance company until the full outstanding amount is paid. Once one third of the original amount funded has been paid back, they require a court order to do so - which they will have.

[Welshbeef]

There really should be a better safer way to buy cars in this situation as no doubt it puts people off buying perfectly good cars.

Also there is naivety en masse with this scenario some poor individuals are utterly ripped off by con artists

[Gruber]

Zwolf said:

Pay it to them yourself. Current owner calls them to settle to get through DPA requirements, gives them permission to speak with you, you make payment directly to them. Any positive difference between the agreed sale price and finance settlement you pay to the vendor.

This is the right answer.