Tips for purchasing a car with outstanding finance

[X30HEA]

Hey everyone, looking for some advice.

I have seen a car advertised that I have fallen in love with. It’s a private sale as the current owner has been made redundant and therefore cutting their out-going’s.

The seller has been very honest about the car and everything he has told me has checked out. He volunteered that there is finance outstanding on the car and this will be cleared with the money from sale.

I do believe him but want to protect myself, how have others dealt with this situation? Am
I best to walk away or is there another option? Ie could I pay the money direct to the finance company and give the seller the rest of the purchase price?

I have never bought privately so any advice or tips you could give would be appreciated.

Thanks! :-)

[dibblecorse]

Hi,

Paying direct to the finance company is exactly the way to do it.

[Drive it fix it repeat]

In my experience I think you would be doing yourself a favour to avoid. I'm biased as I had the wool pulled over my eyes with there being finance on a car I bought without me knowing. Ended up being chased by debt collection agencies and fortunately avoided footing the bill but it has made me very cautious indeed. If you do go ahead do so with eyes wide open.

[Earthdweller]

dibblecorse said:

Hi,

Paying direct to the finance company is exactly the way to do it.

Absolutely this

Don’t give the money to the seller .. speak to the finance company ...pay them direct the outstanding amount .. get confirmation from them the debt is cleared in full .. pay the seller the balance after settlement

[interstellar]

Earthdweller said:

dibblecorse said:

Hi,

Paying direct to the finance company is exactly the way to do it.

Absolutely this

Don’t give the money to the seller .. speak to the finance company ...pay them direct the outstanding amount .. get confirmation from them the debt is cleared in full .. pay the seller the balance after settlement

Yep this is correct but make sure you do it from the sellers house but set it up in advance with a settlement figure etc.

[Sir Bagalot]

Earthdweller said:

dibblecorse said:

Hi,

Paying direct to the finance company is exactly the way to do it.

Absolutely this

Don’t give the money to the seller .. speak to the finance company ...pay them direct the outstanding amount .. get confirmation from them the debt is cleared in full .. pay the seller the balance after settlement

Not always possible.

BMW Finance will not accept settlement from a third party.

I paid the seller. He settled the finance and then handed the phone to me and they confirmed verbally and via email that they had no interest in the car

[Trevor555]

Sir Bagalot said:

BMW Finance will not accept settlement from a third party.

Did they say why?

[jjr1]

Trevor555 said:

Sir Bagalot said:

BMW Finance will not accept settlement from a third party.

Did they say why?

They just don't.

I bought an M4 Comp from a girl who had BMW finance on it and I just sent her the money and she passed it on.

[Trevor555]

jjr1 said:

Trevor555 said:

Sir Bagalot said:

BMW Finance will not accept settlement from a third party.

Did they say why?

They just don't.

I bought an M4 Comp from a girl who had BMW finance on it and I just sent her the money and she passed it on.

I know most people are honest, but that's risky.

What about all the dealers taking in PX's?

Or is it just private buyers they're saying this to?

[fourstardan]

This is just risky business. I've put cars on in my younger days thinking it could make me a far bigger amount or not be upside down at the end of a term and its never worked out.

Is it not in the interest of the finance company to have PCP's settled like this?

[The exhaustman]

I bought my Nissan from a guy who had about £25k finance on it. He was completely open. He showed me the email detailing the settlement figure and the agreement reference. He authorized me to them to make my own enquiry and suggested I researched their contact details independently to ensure there was no scam.

Come the actual day of the deal we both went to a branch of my bank. He saw me organise payment and a had a copy of the receipt. Phoned the finance company to confirm receipt of the monies. Rec'd email to that effect. Transferred the balance to his account. Job done. A little bit of effort but no real difficulty especially given the amount of money involved.

[knitware]

Sir Bagalot said:

Not always possible.

BMW Finance will not accept settlement from a third party.

I paid the seller. He settled the finance and then handed the phone to me and they confirmed verbally and via email that they had no interest in the car

BMW will accept a payment from a third party.
I sold a BMW X5 - £42k paid to BMW from the buyer
BMW 3 Series, £22k paid to BMW from the buyer
BMW S1000R, BMW finance settled by the buyer.

Regarding the original question, buying a vehicle with finance is fine, pay the finance company directly and the balance to the seller, if any. I have bought and sold this way for years. Speak to the seller, visit their home and do all the business whilst there. Little risk if all upfront, ask for the settlement figure, pay the loan, all easy.

[X30HEA]

Thanks for all the responses! Really helpful and feel much better with the advice given. Viewing at the sellers home on Friday 👍🏻