Paying off somebodies finance

[CharlieHotel]

So i'm looking at purchasing a car this week.
The car has finance still on it however and has a settlement fee.
For this settlement fee I would have to transfer 'set amount' into the persons bank and they would have to phone the company they have the car financed with, it's HPI, and pay it off this way.
This is the most efficient way in this complicated matter.
Has anybody done this before and it has worked out ok?

[C. Grimsley]

What's to say he doesn't settle the finanace and keeps your money, can't you pay the finance company direct?

carl

[B16JUS]

when you go to pick it up

e.g sold for 10k of which finance is 9k

Ring up finance pay 9k off and confirm they have no further interest in the car and then hand the seller the 1k

its a really easy process and any good seller will help

J

[Jasandjules]

C. Grimsley said:

What's to say he doesn't settle the finanace and keeps your money, can't you pay the finance company direct?

carl

Indeed. Do you really, really want to pay of someone's finance whilst they still have the car etc? Surely better to pick up the car (with a written confirmation from the finance company of the exact amount outstanding as at that morning) then pay the finance company direct, having paid him the balance.

[CharlieHotel]

C. Grimsley said:

What's to say he doesn't settle the finanace and keeps your money, can't you pay the finance company direct?

carl

I'd be with him present when the balance is paid off, it's just once my money is in somebody elses bank account then it isn't my money then is it. The person could do anything.
Yes I can pay the finance direct but the method takes 3 days for the payment to clear as opposed to over the phone which is instant in the method highlighted above.

[soad]

Sounds risky to me

[CharlieHotel]

Jasandjules said:

Indeed. Do you really, really want to pay of someone's finance whilst they still have the car etc? Surely better to pick up the car (with a written confirmation from the finance company of the exact amount outstanding as at that morning) then pay the finance company direct, having paid him the balance.

How would this work?
I'd be buying the car so the seller wouldn't release the car to me until the balance on the car was £0.
I'd have to pay the settlement figure of this persons then he'd hand me the keys.
The risky part is putting the 'x amount' in this other persons bank account to pay the finance company as they don't let other named cards pay money off.

edit : The seller wouldn't be receiving cash. It would just be finance being paid off then the car balance is clear.

No one ever done this then? :\

Edited by CharlieHotel on Tuesday 31st May 19:43

[paoloh]

CharlieHotel said:

Jasandjules said:

Indeed. Do you really, really want to pay of someone's finance whilst they still have the car etc? Surely better to pick up the car (with a written confirmation from the finance company of the exact amount outstanding as at that morning) then pay the finance company direct, having paid him the balance.

How would this work?
I'd be buying the car so the seller wouldn't release the car to me until the balance on the car was £0.
I'd have to pay the settlement figure of this persons then he'd hand me the keys.
The risky part is putting the 'x amount' in this other persons bank account to pay the finance company as they don't let other named cards pay money off.

What is the name of the Banana boat you fell off??

A finance company won't let someone else pay off finance... I have never heard of that and I am a motor dealer.

[_rubinho_]

paoloh said:

What is the name of the Banana boat you fell off??

A finance company won't let someone else pay off finance... I have never heard of that and I am a motor dealer.

I was able to when we bought my girlfriend's car. We spoke to the finance company with the seller present (i.e. the person who's name the finance was in so as not to breach data protection) and arranged to pay it off by card. When the transaction went through, we gave the balance of cash to the seller and drove off.

What could be simpler? The finance company don't give two hoots about who's paying it, only that it's paid!

Edit: spooling

[B16JUS]

paoloh said:

What is the name of the Banana boat you fell off??

A finance company won't let someone else pay off finance... I have never heard of that and I am a motor dealer.

??? it happens all the time, sellers phones finance company in company of buyer goes through security explains that buyer will be clearing finance hands phone to buyer who pays on card and confirms no further interest in car.

Very very very easy transaction as a motor dealer surly you buy cars than need finance clearing and you duly pay it off ?

[paoloh]

B16JUS said:

paoloh said:

What is the name of the Banana boat you fell off??

A finance company won't let someone else pay off finance... I have never heard of that and I am a motor dealer.

??? it happens all the time, sellers phones finance company in company of buyer goes through security explains that buyer will be clearing finance hands phone to buyer who pays on card and confirms no further interest in car.

Very very very easy transaction as a motor dealer surly you buy cars than need finance clearing and you duly pay it off ?

YOU ARE AGREEING WITH ME!!

[cpas]

Sounds like a scam to me. There was something like this on Watchdog a couple of weeks ago where people were having such cars reposessed even tough they had been paid for. Surely there must be other cars out there that don't have such a history (or have had owners that are selling for a more genuine reason and would therefore have cared for the car better).

[B16JUS]

cpas said:

Sounds like a scam to me. There was something like this on Watchdog a couple of weeks ago where people were having such cars reposessed even tough they had been paid for. Surely there must be other cars out there that don't have such a history (or have had owners that are selling for a more genuine reason and would therefore have cared for the car better).

i thought that was sellers getting log book loans which arnt registered then selling the car

[B16JUS]

paoloh said:

B16JUS said:

paoloh said:

What is the name of the Banana boat you fell off??

A finance company won't let someone else pay off finance... I have never heard of that and I am a motor dealer.

??? it happens all the time, sellers phones finance company in company of buyer goes through security explains that buyer will be clearing finance hands phone to buyer who pays on card and confirms no further interest in car.

Very very very easy transaction as a motor dealer surly you buy cars than need finance clearing and you duly pay it off ?

YOU ARE AGREEING WITH ME!!

sorry yea i thought you were stating not quoting lol

[footsoldier]

You can ask bank to do a CHAPS payment for same day value, doesn't take 3 days to clear and only costs about £20.

I sold my car not long ago, and the private buyer paid off my finance and gave me the cash difference, no problem.

[footsoldier]

You can ask bank to do a CHAPS payment for same day value, doesn't take 3 days to clear and only costs about £20.

I sold my car not long ago, and the private buyer paid off my finance and gave me the cash difference, no problem.

[siko]

paoloh said:

What is the name of the Banana boat you fell off??

A finance company won't let someone else pay off finance... I have never heard of that and I am a motor dealer.

Rubbish !

When I sold my bike I had approx £4 k outstanding on finance with Lloyds, we discussed various options and I was happy to take a short-term loan out to cover the outstanding. The buyer was a top guy though and liaised direct with Lloyds, paid off the debt on his credit card (I then rang separately and confirmed as such) and we completed the deal a day later when he came over. Incredibly simple and easy - what may have helped things was that he had viewed the bike at my house, met the family etc - not sure he/I would have done it without meeting first and 'scoping' out the other party....

[CharlieHotel]

footsoldier said:

You can ask bank to do a CHAPS payment for same day value, doesn't take 3 days to clear and only costs about £20.

I sold my car not long ago, and the private buyer paid off my finance and gave me the cash difference, no problem.

Thanks for that. Did the finance company send you, such as a letter to say the finance had been fully paid?

[CharlieHotel]

siko said:

Rubbish !

When I sold my bike I had approx £4 k outstanding on finance with Lloyds, we discussed various options and I was happy to take a short-term loan out to cover the outstanding. The buyer was a top guy though and liaised direct with Lloyds, paid off the debt on his credit card (I then rang separately and confirmed as such) and we completed the deal a day later when he came over. Incredibly simple and easy - what may have helped things was that he had viewed the bike at my house, met the family etc - not sure he/I would have done it without meeting first and 'scoping' out the other party....

I have been to the sellers house so hoping the transaction will go smoothly.
After the buyer had paid the £4k off of your bikes balance did you just give him the keys and V5?
Did you receive confirmation of the balance being zeroed and if so how long did it arrive in?
Yes I am Mr.Worry from Mr.Men

[cpas]

B16JUS said:

cpas said:

Sounds like a scam to me. There was something like this on Watchdog a couple of weeks ago where people were having such cars reposessed even tough they had been paid for. Surely there must be other cars out there that don't have such a history (or have had owners that are selling for a more genuine reason and would therefore have cared for the car better).

i thought that was sellers getting log book loans which arnt registered then selling the car

Yes, you are right on that one. I've slept since then