Car I want to buy has conditional finance agreement on it
Discussion
Hi Guys
Looking at a car tomorrow that I like and interested in buying. A HPI check has shown that it has outstanding finance on it. Particularly, a conditional sale agreement. I can and will call up the bank involved before I buy the car (if I like it) to ensure I am not implicated. Can a card under this type of agreement be put for sale? I could buy the car (with cash) but the buyer may not even pay off the finance?
Advice appreciated!
Looking at a car tomorrow that I like and interested in buying. A HPI check has shown that it has outstanding finance on it. Particularly, a conditional sale agreement. I can and will call up the bank involved before I buy the car (if I like it) to ensure I am not implicated. Can a card under this type of agreement be put for sale? I could buy the car (with cash) but the buyer may not even pay off the finance?
Advice appreciated!
Z064life said:
Butter Face said:
Private or dealer?
Dealer.You can call the finance company and ask if they still have an interest in the car.
What is the term of the finance? It may be stocking finance.
I can check it if you send me the reg.
Butter Face said:
Then don’t worry. They will clear the finance when sold (if it has not already been done which is likely)
You can call the finance company and ask if they still have an interest in the car.
What is the term of the finance? It may be stocking finance.
I can check it if you send me the reg.
Yep I will do that to cover my back.You can call the finance company and ask if they still have an interest in the car.
What is the term of the finance? It may be stocking finance.
I can check it if you send me the reg.
It's conditional sale agreement.
I will pm you the plate no (we've talked before about other matters btw
).Butter Face said:
Nice car! 
That agreement is deffo from when the last owner bought the car so yes, you want written confirmation it’s cleared!
Good luck with it, bagsy a passenger ride!
Haha np.That agreement is deffo from when the last owner bought the car so yes, you want written confirmation it’s cleared!
Good luck with it, bagsy a passenger ride!
So I should call the bank, ask them to confirm in writing, and if they do, buy it? Don't buy it before?
Would it be ok to buy with the assumption the dealer would pay the finance?
BAM225 said:
I've heard stories about this, while it could be pub talk, if the previous owner has defaulted, it COULD be towed off your drive subject to court order etc.
Very unlikely to happen but I would still tread carefully.
Ugh this is a headache. Right car but now I need to consider this. Very unlikely to happen but I would still tread carefully.
Z064life said:
Haha np.
So I should call the bank, ask them to confirm in writing, and if they do, buy it? Don't buy it before?
Would it be ok to buy with the assumption the dealer would pay the finance?
ring the finance company before you go and speak to them. If its a main dealer this is fairly normal so get it in writing they will clear it prior to collection and you should be fine.So I should call the bank, ask them to confirm in writing, and if they do, buy it? Don't buy it before?
Would it be ok to buy with the assumption the dealer would pay the finance?
interstellar said:
ring the finance company before you go and speak to them. If its a main dealer this is fairly normal so get it in writing they will clear it prior to collection and you should be fine.
Should have done the HPI check earlier! I can make this a stipulation of the deal. It's a private independent dealer, not a manufacturer dealer. I will call the bank tomorrow.Got your email mate.
Don’t worry about the finance, the dealer has likely already cleared it, just that HPI can be slow to take these markers off.
Just call the dealer, ask them about it and they’ll likely have a clearance letter to show it’s been paid off. You won’t need to get involved in paying anyone but the dealer.
Hope the other thing is going well also!
Don’t worry about the finance, the dealer has likely already cleared it, just that HPI can be slow to take these markers off.
Just call the dealer, ask them about it and they’ll likely have a clearance letter to show it’s been paid off. You won’t need to get involved in paying anyone but the dealer.
Hope the other thing is going well also!
Z064life said:
So the finance is outstanding and the plan is that I pay the bank the settlement figure directly and the rest to the dealer. That's a pretty watertight plan right? Any thoughts guys?
At least by working with a big bank there is an element of safety.
That's not a usual scenario when buying from a dealer.At least by working with a big bank there is an element of safety.
What if you have to return the car because of a fault, or miss description?
You haven't paid the whole amount to the dealer, it could get messy if things go wrong.
Usual scenario is to pay the whole amount to the dealer, and trust the dealer to settle the finance.
Z064life said:
So the finance is outstanding and the plan is that I pay the bank the settlement figure directly and the rest to the dealer. That's a pretty watertight plan right? Any thoughts guys?
At least by working with a big bank there is an element of safety.
That doesn’t sound right to me, if it was a private sale it would but not with a dealer. They have no cash flow to pay it?At least by working with a big bank there is an element of safety.
Z064life said:
Hi Guys
I could buy the car (with cash) but the buyer may not even pay off the finance?
Advice appreciated!
Never pay cash for a car unless it's a cheapie.I could buy the car (with cash) but the buyer may not even pay off the finance?
Advice appreciated!
Safest way for a consumer to pay for a car from a dealer is by Visa debit card. Easy to get your money back if you run into problems soon after sale as the card company will be able to do a chargeback to save you going to court.
If you pay by bank transfer, or cash, you'd have to go through the court to get your money back.
You MUST make traceable payments when buying cars, cash is NOT a traceable payment.
Trevor555 said:
That's not a usual scenario when buying from a dealer.
What if you have to return the car because of a fault, or miss description?
You haven't paid the whole amount to the dealer, it could get messy if things go wrong.
Usual scenario is to pay the whole amount to the dealer, and trust the dealer to settle the finance.
The car meets my expectations and is up to spec. It's also getting inspected prior to purchase to mitigate that scenario.What if you have to return the car because of a fault, or miss description?
You haven't paid the whole amount to the dealer, it could get messy if things go wrong.
Usual scenario is to pay the whole amount to the dealer, and trust the dealer to settle the finance.
The dealer is happy for the payment to happen either way but from a trust perspective I'd like to pay the bank directly. The dealer is happy for me to pay him everything and then go with him to the bank to settle the finance. All the same result.
The whole amount for the dealer will be the difference between the settlement figure and the price of the car, the dealer was never going to pocket the full price due to the finance outstanding, so that shouldn't be an issue?
interstellar said:
That doesn’t sound right to me, if it was a private sale it would but not with a dealer. They have no cash flow to pay it?
The dealer did mention something about a lot of money tied up in the car. Maybe the dealer hasn't got the cash to clear the finance. Although really this was/is the responsibility of the last owner, and he would be breaching the terms of his finance by selling a car that he does NOT own.Butter_face mentioned effectively the same thing.
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