Purchasing a car with outstanding finance.
Discussion
Good afternoon guys,
I'm just looking for a bit of advice / thoughts on purchasing a car with outstanding fianace from those of you with a bit of experience with these things if possible.
I found a car listed on Ebay on Monday, right car, good price managed to negotiate it down to what I think is a very good price, however the ad was pretty vaugue and just said call for details.
So I call the guy, get the usual information and arrange a viewing (private sale). Turn up, take the car out and have a look, all goes well and I inform the seller I would be happy to bank transfer him a deposit AFTER I did an HPI check, and only then did he point out that he had 'a bit' of fianance outstanding.
Turns out it's more than we've agreed for the car by about £300 quid.
I've spoken to the finance company and they have told me he needs to authorise me on his account so that they can divulge details to me, such as the true settlement figure.
So the only way I can see this proceeding is:
- He add's my name onto his account as an 'authority' to speak to them
- He pays his £300 odd quid, then we pay the remaining balance whilst with him, wait for confirmation and then proceed to complete the V5 etc.
Is this safe do to, or would you walk away from this deal?
I'm just looking for a bit of advice / thoughts on purchasing a car with outstanding fianace from those of you with a bit of experience with these things if possible.
I found a car listed on Ebay on Monday, right car, good price managed to negotiate it down to what I think is a very good price, however the ad was pretty vaugue and just said call for details.
So I call the guy, get the usual information and arrange a viewing (private sale). Turn up, take the car out and have a look, all goes well and I inform the seller I would be happy to bank transfer him a deposit AFTER I did an HPI check, and only then did he point out that he had 'a bit' of fianance outstanding.
Turns out it's more than we've agreed for the car by about £300 quid.
I've spoken to the finance company and they have told me he needs to authorise me on his account so that they can divulge details to me, such as the true settlement figure.
So the only way I can see this proceeding is:
- He add's my name onto his account as an 'authority' to speak to them
- He pays his £300 odd quid, then we pay the remaining balance whilst with him, wait for confirmation and then proceed to complete the V5 etc.
Is this safe do to, or would you walk away from this deal?
That was my initial concern, I might be being judgemental here but it turns out to be one of those companies for people who are a credit risk, with massive payments. My guess is that he can't afford the repayments and was hoping to move it on before we realised.
He has come clean now but it's the initial deceit that's left me wondering about the deal.
He has come clean now but it's the initial deceit that's left me wondering about the deal.
A bit of hassle,
But you could pay him the amount agreed minus the finance outstanding (call finance company in front of him or get a figure in writing of the settlement) for the car and then get a Bankers Draft drawn up for the outstanding amount made out to the finance company... that way it's in his best interests to pay it off and not as if he has the extra money from you in his hands.
That's what I've always done previously..
But you could pay him the amount agreed minus the finance outstanding (call finance company in front of him or get a figure in writing of the settlement) for the car and then get a Bankers Draft drawn up for the outstanding amount made out to the finance company... that way it's in his best interests to pay it off and not as if he has the extra money from you in his hands.
That's what I've always done previously..
He could just be ignorant to the fact that he has to disclose the finance interest at the point of sale, and has every intention of paying this off. Not everyone is an evil criminal.
Best way to handle this, if you're happy to proceed with the car, is for the seller to give you the authorisation to speak with the finance company about his account. You can pay your part to them, he can pay his part to them, and once the finance company confirm that they have no further interest in the car, you're free to take the car, safe in the knowledge that the finance is cleared.
Best way to handle this, if you're happy to proceed with the car, is for the seller to give you the authorisation to speak with the finance company about his account. You can pay your part to them, he can pay his part to them, and once the finance company confirm that they have no further interest in the car, you're free to take the car, safe in the knowledge that the finance is cleared.
Dejay1788 said:
He has come clean now but it's the initial deceit that's left me wondering about the deal.
I wouldn't read too much into it.Think about it the other way. If you advertised the as as having outstanding finance nobody would come to see it.
As you have suggested, get authorised by him to speak with finance company, get settlement figure, he pays the shortfall, you then pay the balance over the phone to the finance company and drive the car away. Simples?
I had a situation when buying a car a couple of years ago. Went to see the car, liked it so went home and did an HPI and it came back as outstanding finance. I popped back to see the guy and brought this up. He said "oh I would have paid of the finance that day".
Maybe he would but he was not up front from the start. We could not come to an agreement, I wanted to take the car and pay the finance myself but he would not sign over the car. I would not give him the cash in case he did not pay off the finance. His wife was also really snippy about it so I just left it. The car was 5 miles form where I lived and seemed good but I found another 200 miles away and bought that instead.
Maybe he would but he was not up front from the start. We could not come to an agreement, I wanted to take the car and pay the finance myself but he would not sign over the car. I would not give him the cash in case he did not pay off the finance. His wife was also really snippy about it so I just left it. The car was 5 miles form where I lived and seemed good but I found another 200 miles away and bought that instead.
Thanks for the advice guys. I've got a little update on the situation now.
I've spoken to the sellers, and he had me authorised on his finance account. I have spoken to the finance company and asked if I can pay the balance, what the settlement fee is etc.
The only issue is if I pay his remainder that they will not clear it until the funds have cleared on Wednesday.
My proposal for this situation now would be to go to his place, pay off the balance then and there in front of him via BACS (which the finance company have requested as payment method) and sign over the car and drive away tomorrow.
As far as I can see this would be the safest way from my side to do this, as once payment has been sent It cannot be reversed, as far as I am aware (please correct me if I'm wrong). I understand he may be apprehensive to do so as in theory I'm driving way his car and no confirmation will arrive until Wednesday, however I am reluctant to pay over almost £6K on his finance agreement and not pick up until next week.
Any thoughts?
Thank you all.
I've spoken to the sellers, and he had me authorised on his finance account. I have spoken to the finance company and asked if I can pay the balance, what the settlement fee is etc.
The only issue is if I pay his remainder that they will not clear it until the funds have cleared on Wednesday.
My proposal for this situation now would be to go to his place, pay off the balance then and there in front of him via BACS (which the finance company have requested as payment method) and sign over the car and drive away tomorrow.
As far as I can see this would be the safest way from my side to do this, as once payment has been sent It cannot be reversed, as far as I am aware (please correct me if I'm wrong). I understand he may be apprehensive to do so as in theory I'm driving way his car and no confirmation will arrive until Wednesday, however I am reluctant to pay over almost £6K on his finance agreement and not pick up until next week.
Any thoughts?
Thank you all.
2 months ago went to buy a car in the region of 20k.car viewed and deal done. On the day of collection I decided to do a 2nd hpi check and outstanding finance showed up. 15k according to the owner which he did not tell he before. He said he would have paid it that day and I trusted he would have but not to leave to chance I said I will come down; you will call you finance company and I will pay off the finance and give you the 5k in cash coming to the total purchase price.
All done no problem and cars mine.
All done no problem and cars mine.
Dejay1788 said:
That was my initial concern, I might be being judgemental here but it turns out to be one of those companies for people who are a credit risk, with massive payments. My guess is that he can't afford the repayments and was hoping to move it on before we realised.
He has come clean now but it's the initial deceit that's left me wondering about the deal.
Log book loans don't show up on all HPI checks, only the comprehensive ones, I believe...He has come clean now but it's the initial deceit that's left me wondering about the deal.
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