Selling a car to someone who is getting Finance on it

[AsifG]

Hi All,

I've got someone interested in my car that I'm selling.

He is a Dealer but wants the car for his own use and will get finance on it. He said the Finance company may contact me for a copy of the V5 and the purchase receipt from when I bought it.

I've not heard of this before so thought I'd check this is common practice before sharing sensitive data!

Thanks in advance

[anonymous-user]

I'd assume they require checks to make sure you actually own the car and have the current V5 before they will advance a loan against it.

Never heard of it before, but if it comes in from a genuine finance house and you can talk to them to find out why they want the data and how they are going to process it then it wouldn't overly worry me. If it seems at all dubious I'd walk away.

[Welshbeef]

Normally a loan isn’t secured on a vehicle (used cars) - guessing it’s a significant value car?

[AsifG]

Thanks for the replies. Yes it's £90k.

I was going to call the finance company if I received an email from them to verify why they wanted the info, but wanted to know if it was common practice as not been in this situation before

[Mark V GTD]

I doubt that its 'common practice' - not sure I would be very keen personally, unless you stand to get substantially more money for the car. As a seller you really just want the buyer to transfer the money over and drive the car away.

[tallpaul26]

The finance company will definitely need to see proof of ownership before release of funds. I was looking at buying a car privately using an asset financier (via a broker) and this was the process.

[GreatGranny]

Mark V GTD said:

I doubt that its 'common practice' - not sure I would be very keen personally, unless you stand to get substantially more money for the car. As a seller you really just want the buyer to transfer the money over and drive the car away.

Not common practice but as long as you get the money in your bank account before you transfer ownership, whether it's from the buyer direct or from a finance company, it all should be good.

[Mark V GTD]

GreatGranny said:

Not common practice but as long as you get the money in your bank account before you transfer ownership, whether it's from the buyer direct or from a finance company, it all should be good.

Agreed!

[Tommo87]

Call me a overly cautious, but the scenario almost reads like the dealer is taking out a loan against the logbook, whilst it is still in the Op’s name. The Op is also providing proof, that HE owns the car, and not the dealer.

Or, is that just coincidence?

[Andrew[MG]]

Interesting they are financing a private sale. What's the finance company?

[Mark V GTD]

Indeed - the OP really needs to be talking to finance company (who are effectively funding the purchase) and find out how this works. And also verify the legitimacy of said company.

[AsifG]

Thanks all for your comments and suggestions. To close off the topic and may be help someone else in the future, this was all ok.

- I received an email from the Finance Broker and after checking them out and contacting them on their landline number to allay any concerns, I sent them the requested docs.

- The broker stated that the monies would come from JBR Capital, who I also checked out.

- JBR emailed me their paperwork and asked for a Tracker to be fitted to the car (took 15 mins)

- Once the tracker was fitted, JBR sent payment by Bank Transfer. I then transferred the money to another one of my bank accounts

- Buyer collected the day after

Not sold a car this way before, but it all went smoothly

[Countdown]

What car was it OP?

[Mark V GTD]

Glad it all went smoothly! :-)