buy a car with outstanding finance...

[70proof]

hi all

how do you do this..... do you pay the finance company directly, what if there is a shortfall?

asking as i have never been in this position before and am very interested in a private sale gallardo...

[SpeedYellow]

Normally you'd pay the finance company directly to make sure the money goes to the correct place. If there is a shortfall get the seller to pay that off first and confirm with the finance company that you paying the remaining balance will clear their interest in the car.

Always a hassle but nothing to worry about really.

[ChrisFitz]

70proof said:

hi all

how do you do this..... do you pay the finance company directly, what if there is a shortfall?

asking as i have never been in this position before and am very interested in a private sale gallardo...

I indeed did this but via a broker so less risky. In essence you pay the finance company, via bank transfer or whatever, what is owed and the remainder to the owner. If their is a shortfall then the owner will need to reduce the negative amount and preferably 1st so you just pay the remainder.

Obviousally there is an element of trust involved here.

But all relatively simple really....

[XXVIII]

I may be wrong, but a vehicle is owned by the finance company until all outstanding funds owing to them are paid.

If the vendor is the holder of the log book and he has not passed the remaining payments to the finance company then he isn't allowed to sell the vehicle as it isn't his to sell.

I remember the lard-arsed school bully who had to flog his shiny yellow Yamaha FS1E moped that was on finance via his daddy as daddy was a bit short of readys. The Hire Purchase company caught them both and they ended up being made a bit of an example of back in the scorching summer of 1976 and poor fat git had to walk everywhere or else get his mummy to drive him about in her rusty Marina ...

I'd go for a car with no money issues of any kind since nobody needs the potential and/or actual grief and you might wonder if the 'owner' is selling with outstanding finance problems, has he also struggled to pay / missed out on paying for important stuff like proper maintenance and servicing???

good luck anyway - you'll find a good 'un soon, I'm sure

[70proof]

this is the car...

http://www.pistonheads.com/sales/2877082.htm

he has had it for less than 2 months, brought under finance from lambobrum.....

is selling as needs the money to buy into property, so i assume car is part financed, so will need to confirm....

[andysv]

i've done this a few times, you get a letter from the finance co giving a settlement figure and i have paid that to them directly, do not pay the seller the total, he could do a runner and you won't own the car at all, unlikely but never say never and i would probably want to speak with the finance co as today a forged letter or email is simple.

[ChrisFitz]

XXVIII said:

I may be wrong, but a vehicle is owned by the finance company until all outstanding funds owing to them are paid.

If the vendor is the holder of the log book and he has not passed the remaining payments to the finance company then he isn't allowed to sell the vehicle as it isn't his to sell.

I remember the lard-arsed school bully who had to flog his shiny yellow Yamaha FS1E moped that was on finance via his daddy as daddy was a bit short of readys. The Hire Purchase company caught them both and they ended up being made a bit of an example of back in the scorching summer of 1976 and poor fat git had to walk everywhere or else get his mummy to drive him about in her rusty Marina ...

I'd go for a car with no money issues of any kind since nobody needs the potential and/or actual grief and you might wonder if the 'owner' is selling with outstanding finance problems, has he also struggled to pay / missed out on paying for important stuff like proper maintenance and servicing???

good luck anyway - you'll find a good 'un soon, I'm sure

that must have been a big fraud on a fizzy! lol

not strictly true as I bought my G and there was finance o/s. Yes the finance company does indeed own the car in effect.
However, as long as the balance is cleared, it doesn't matter by who, then it can indeed be sold.

As the other poster mentions you do need to speak to the finance company, pref on the phone as we did, to ascertain balance and payment method.

[iandc]

Will the Finance people talk to you as you are not the borrower so Data Protection surely prevents them telling you how much is owed?

[iandc]

70proof said:

this is the car...

http://www.pistonheads.com/sales/2877082.htm

he has had it for less than 2 months, brought under finance from lambobrum.....

is selling as needs the money to buy into property, so i assume car is part financed, so will need to confirm....

Looks very nice and meets iirc most of your spec "musts". I hope this one works out for you. (nice wheels by the way!)

[ChrisFitz]

70proof said:

this is the car...

http://www.pistonheads.com/sales/2877082.htm

he has had it for less than 2 months, brought under finance from lambobrum.....

is selling as needs the money to buy into property, so i assume car is part financed, so will need to confirm....

Seems to have everything you want and colour doesn't it?
Even the clear cover although doesn't mention it.
Wasn't aware you can get extended Lambo warranty. That must be steep. Would check on this to see what is included/excluded but could be very handy.

Depending on the car's entire history and condition it seems to fit everything you wanted. Does it have lifting gear?

For peace of mind could get someone such as Mike Pullen to give it the once over and check out the car.
I did this via Lambo Brum (place) not person prior to buying mine and got owner to pay for it.
Threw up couple of minor things which we then fixed.

Go for it mate, seems like a nice car (albeit I don't know it) and the spec and colour you want and a realistic asking price.

[ChrisFitz]

iandc said:

Will the Finance people talk to you as you are not the borrower so Data Protection surely prevents them telling you how much is owed?

not sure about that. an HPI check will show how much is owing etc and you don't need to be the owner to perform one of them.

[franki68]

70proof said:

this is the car...

http://www.pistonheads.com/sales/2877082.htm

he has had it for less than 2 months, brought under finance from lambobrum.....

is selling as needs the money to buy into property, so i assume car is part financed, so will need to confirm....

Nice car but I really would test drive it,it has the much hated ceramic brakes on (never driven one with them ,but the motoring press slaughtered them.)

[ChrisFitz]

I indeed was wary of them but after driving it and once marginally warmed up they are awesome. tad over sensitive in busy traffic but get used to that. Way superior to the steels in my humble opinion.

[70proof]

ChrisFitz said:

I indeed was wary of them but after driving it and once marginally warmed up they are awesome. tad over sensitive in busy traffic but get used to that. Way superior to the steels in my humble opinion.

chris, ur car has similar mileage, how worn are the discs.... do they wear the pads more......

[bertie]

I have done this, you have to get the current owner to authorise you to get a settlement statement from the finance compan.

Then you settle this direct and get a confirmation of clear title from the finance company saying they have no further interest registered on the car.

[franki68]

ceramics should last more than 18k nearer 30k i would have thought before you need to change anything ? But im guessing.

[amirzed]

I did this too, in theory pretty simple, you pay the financy co. the amount to settle and any excess to the owner - then you drive off.

Or as in my case dealing with some racist jeordies you do all of that and then they take copies of all your ID, then demand you go to the bank with them, fill out the transfer paperwork themselves, then watch you intently whilst you sign and give to the bank cashier and as a final plug, refuse to hand over any paperwork till the finance company has cleared the finance, for 'peace of mind'.

There is nothing to fear with doing this OP but I would set out how it's going to happen, if 2 sides to the transaction have suspicion of each other then it really spoils the deal and makes your head hurt.

[franki68]

amirzed said:

I did this too, in theory pretty simple, you pay the financy co. the amount to settle and any excess to the owner - then you drive off.

Or as in my case dealing with some racist jeordies you do all of that and then they take copies of all your ID, then demand you go to the bank with them, fill out the transfer paperwork themselves, then watch you intently whilst you sign and give to the bank cashier and as a final plug, refuse to hand over any paperwork till the finance company has cleared the finance, for 'peace of mind'.

There is nothing to fear with doing this OP but I would set out how it's going to happen, if 2 sides to the transaction have suspicion of each other then it really spoils the deal and makes your head hurt.

I would do that ,irrespective of colour or creed.,I know far too many people caught out in private transactions to have any trust in anyone.

[ChrisFitz]

70proof said:

chris, ur car has similar mileage, how worn are the discs.... do they wear the pads more......

funny you should mention this.
disks are not worn at all. brake pad warning light has just come on before the service.
had checked all the pads including the hand brake and the most worn are around 50% or just under but the sensor has made a circuit so hence the warning light. so to answer the question, discs not worn at all, pads 50% worn approx but this does generate the light!
Personally I'm coming to disconnect them. As with an average of 1500 miles pa it would take approx another 10 yrs for them to be fully worn and a bi annual check is more than sufficient. Damn German technology!

[Try5t]

XXVIII said:

I may be wrong, but a vehicle is owned by the finance company until all outstanding funds owing to them are paid.

If the vendor is the holder of the log book and he has not passed the remaining payments to the finance company then he isn't allowed to sell the vehicle as it isn't his to sell.

I remember the lard-arsed school bully who had to flog his shiny yellow Yamaha FS1E moped that was on finance via his daddy as daddy was a bit short of readys. The Hire Purchase company caught them both and they ended up being made a bit of an example of back in the scorching summer of 1976 and poor fat git had to walk everywhere or else get his mummy to drive him about in her rusty Marina ...

I'd go for a car with no money issues of any kind since nobody needs the potential and/or actual grief and you might wonder if the 'owner' is selling with outstanding finance problems, has he also struggled to pay / missed out on paying for important stuff like proper maintenance and servicing???

good luck anyway - you'll find a good 'un soon, I'm sure

Spot on - its always the finance companies car until the final payment has been made.