Clearing finance- Private sale
Discussion
As above, when I bought my Allroad last year, I got evidence of the settlement figure from a letter dated after I expressed an interest in buying the car, then paid both that figure to the finance company and the remainder to the seller via online banking, when I went to collect the car.
Back in 2007 I bought a Lupo GTI privately which had outstanding finance, but because the seller worked in the service department of a VW dealer and it's also where I viewed the car, then I was happy to buy the car with evidence from the seller afterwards, that they'd paid off the finance, which, if I remember correctly, might have been a letter from VWFS addressed to me directly.
Back in 2007 I bought a Lupo GTI privately which had outstanding finance, but because the seller worked in the service department of a VW dealer and it's also where I viewed the car, then I was happy to buy the car with evidence from the seller afterwards, that they'd paid off the finance, which, if I remember correctly, might have been a letter from VWFS addressed to me directly.
Seller gets a settlement figure and, whilst you're there, they call to settle the balance and you make the payment to the finance company. You then make subsequent payment for any extra to the seller.
The 'risk' is the same as if you were buying the car with zero finance in that both purchase methods have the danger of the seller choosing to not transfer ownership to you after you've made payment either to them or the finance provider.
The 'risk' is the same as if you were buying the car with zero finance in that both purchase methods have the danger of the seller choosing to not transfer ownership to you after you've made payment either to them or the finance provider.
J1990 said:
Seller gets a settlement figure and, whilst you're there, they call to settle the balance and you make the payment to the finance company. You then make subsequent payment for any extra to the seller.
The 'risk' is the same as if you were buying the car with zero finance in that both purchase methods have the danger of the seller choosing to not transfer ownership to you after you've made payment either to them or the finance provider.
I always think that I would be more comfortable calling the finance company on my phone and letting the seller speak to them, It would always be in the back of my mind that they had their mate Dave saved on their phone and they would call him to take payment and then he would confirm it was all clear etc.The 'risk' is the same as if you were buying the car with zero finance in that both purchase methods have the danger of the seller choosing to not transfer ownership to you after you've made payment either to them or the finance provider.
Bare in mind that some finance houses only allow the account holder to settle.
Last two cars I've bought have both had finance on and neither would allow payment by me. I had to pay the seller and then they settled the finance in my presence and an email received stating no longer have an interest in car.
In both cases I had done a land registry search on who owned the property, this confirmed they owned it.
Last two cars I've bought have both had finance on and neither would allow payment by me. I had to pay the seller and then they settled the finance in my presence and an email received stating no longer have an interest in car.
In both cases I had done a land registry search on who owned the property, this confirmed they owned it.
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