Buying a car that has finance owing? What to do?
Discussion
I am looking at a car for sale that the owner has told me still has finance owing on it. The car seems legit and not dodgy but I'm just not sure about the whole finance thing. If i were ro buy the car what is the safest way to pay for the car? Can i pay the finance company directly?
Should I walk away?
Until the finance company confirm they no longer have any interest in the car then it is not legally the sellers vehicle to sell.
The seller needs to clear the finance before you buy the car, how they do that isn't your problem, walk away unless the seller is willing to sort the finance IMO.
The seller needs to clear the finance before you buy the car, how they do that isn't your problem, walk away unless the seller is willing to sort the finance IMO.
charltjr said:
Interesting, I stand corrected then, always thought this was a major no-no but looks like I was wrong.
By paying them directly you can ask for proof they are no longer interest in the car etc. I'd not give the seller the money to pay it off and take the car, as they could easily just keep the cash.
It's a major idiotic thing to do to hand over 10k to the seller and trust them to pay the finance off, but paying the amount owing, and the balance to the seller ought not to be an issue. Log book loans throw a small spanner in, but you'll get that with any car, as they don't show on searches.
I've done the same as others in this situation, I contacted the finance company with the current owner on hand and cleared the finance. I then paid the seller the balance owing. It's easy if you're careful and ensure the finance company confirm 100% that there is no further liability. If the seller is honest they will not have a problem with this. If they do take issue with this approach, walk away.
illmonkey said:
By paying them directly you can ask for proof they are no longer interest in the car etc.
I'd not give the seller the money to pay it off and take the car, as they could easily just keep the cash.
They could, but you would obtain a good title to the vehicle. Contrary to 'accepted wisdom' 'pub lore' and now internet myth, but if you buy a vehicle in ignorance or having been assured that outstanding finance will be cleared, then the law protects you and cars cant be 'repossessed'.I'd not give the seller the money to pay it off and take the car, as they could easily just keep the cash.
As an extra safeguard, when I did this, I paid the outstanding amount into BMW Finance account, in cash, with the seller with me. I had already spoken with BMW Finance to explain what was going on.
Finance then confirmed by email to both seller and me, with a pdf letter attached, that they could see the money in the account and although it was not officially cleared funds, in BMW finance speak, both seller and I were happy for me to take the car.
Within 3 days I had a further email from BMW Finance to say the funds were now clear and they had no further interest in the vehicle.
It's a little more involved than a normal sale but both buyer and seller know all is above board.
Finance then confirmed by email to both seller and me, with a pdf letter attached, that they could see the money in the account and although it was not officially cleared funds, in BMW finance speak, both seller and I were happy for me to take the car.
Within 3 days I had a further email from BMW Finance to say the funds were now clear and they had no further interest in the vehicle.
It's a little more involved than a normal sale but both buyer and seller know all is above board.
I wish we could do more of this in the UK, buy out sellers with finance or low term contracts. Especially on PCH where they could return the car for inspection and then give me 6 months @ a 48 month rate.
As to a phone call I'd want to call them myself or even visit them and pay it off and make sure you're not paying £10K to someone who paid £60 + £15 a month for an 0845 etc business sounding number and a virtual PO Box which has a normal sounding business address but where they sort out the mail for individuals.
As to a phone call I'd want to call them myself or even visit them and pay it off and make sure you're not paying £10K to someone who paid £60 + £15 a month for an 0845 etc business sounding number and a virtual PO Box which has a normal sounding business address but where they sort out the mail for individuals.
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