Buying a car with outstanding HP

[Diablos-666]

I'm going to be buying a used car in the next few days but there is outstanding finance on the car.

It's a private sale and the guy has been up front to me about it. The car is being sold for £18,750 but there is a balloon payment of £5k in Feb.

What's the best way to proceed? Do I pay the finance off then pay the outstanding balance or pay the guy and let him pay the finance off?

I have a good feeling about the guy so don't think he'd screw me over but I still want to be careful.

[897sma]

Pay the finance. It is illegal for him to sell it unless you do. The finance agreement will be a "conditional sale" meaning the finance company will be the legal owner until final payment is made.

Have you hpi'd it?

[Pugland53]

I've done this a few times, just pay off the settlement figure with your card when he rings the finance company, then get them to email/fax that they no longer have a financial interest in the vehicle. This way you both know its paid off. The remaining balance to the seller in cash etc...

[falkster]

Pay the finance off direct with him present then give the seller the remainder.

[Diablos-666]

Is it a bad idea to buy the car on the same day that I sell my car? Should I leave it a couple of days for the accounts to settle?

[Arthur Daley]

Bare in mind just because the balloon is 5k thats not until Feb.. You need an up to date settlement figure for today..
Also an 18k car with a GFV of 5k next month.. doesn't sound right..

[dowahdiddyman]

Seems a hell of a big difference between the 2 figures and there is now way in hell I would give him the full amount, don`t care how decent the seller seems. You could end up paying over 18k for basically 2 months car rental, that`s all it will be if he don`t pay off the finance, cause it will belong to the finance company and you could then technically be classed as being in reciept of stolen goods.