Buying a car Private Sale which has 'outstanding finance'.
Discussion
Hi folks, i've got the chance of a car which the seller has said still has an outstanding balance owed on it.
It's registered in his name, at his address , and he's been the registered keeper of it for 3 years.
He is NOT in a position to pay off the car himself........he needs the buyers money to be able to do this.
He has said that as soon as i transfer the money ( £4250 ) to his account, he will settle the finance while i'm there in his house.
The thing that concerns me though......is what if he was a right dishonest guy and DIDN'T do it, OR said for instance ' i'm goin to keep £1000 back, but i will pay the monthly payment'.
My money is in his account by then .
I'm stating the worst case scenarios obviously , and it's almost 99% certain things would go to plan.
Thing is , what would YOU do ,or would you avoid the car ?
Would you take the risk?
Is there a safer way to do it ?
Cheers
It's registered in his name, at his address , and he's been the registered keeper of it for 3 years.
He is NOT in a position to pay off the car himself........he needs the buyers money to be able to do this.
He has said that as soon as i transfer the money ( £4250 ) to his account, he will settle the finance while i'm there in his house.
The thing that concerns me though......is what if he was a right dishonest guy and DIDN'T do it, OR said for instance ' i'm goin to keep £1000 back, but i will pay the monthly payment'.
My money is in his account by then .
I'm stating the worst case scenarios obviously , and it's almost 99% certain things would go to plan.
Thing is , what would YOU do ,or would you avoid the car ?
Would you take the risk?
Is there a safer way to do it ?
Cheers
Edited by Bikerpiker on Friday 26th February 10:40
When I bought my last car, the seller got a quote from his finance company. Purchase day arrived, I rung them up, sent them the outstanding, we filled out the V5 and I drove home.
I had had a conversation with them previously stating that I had intended to buy the car and would pay the balance. This wasn't an issue for them so long as the seller could provide his account details during my call.
They sent me an email confirming that they held no interest on the vehicle after a few days.
I had had a conversation with them previously stating that I had intended to buy the car and would pay the balance. This wasn't an issue for them so long as the seller could provide his account details during my call.
They sent me an email confirming that they held no interest on the vehicle after a few days.
As above, no I wouldn't take the risk. You can pay it off directly while in his house, over the phone using your debit card or whenever. Under no circumstances would I transfer the money directly to the seller.
Most finance companies will happily take up to £20k over the phone in one hit, certain Alphera (BMW) and VWFS do.
Most finance companies will happily take up to £20k over the phone in one hit, certain Alphera (BMW) and VWFS do.
This situation happens all the time and is nothing to worry about handled correctly.
YOU pay off his outstanding finance once you are happy with the car and deduct that from the total price leaving you to pay the seller direct the outstanding.
Take keys and V5 with you or even swap ownership & tax it online before leaving.
YOU pay off his outstanding finance once you are happy with the car and deduct that from the total price leaving you to pay the seller direct the outstanding.
Take keys and V5 with you or even swap ownership & tax it online before leaving.
Absolutely, repeat advice, you should pay the finance company directly and not the seller.
Try to get the finance company details before hand, research and confirm all kosher.
He should have no issue with you doing this, if he objects, walk away no matter the reason.
Try to get the finance company details before hand, research and confirm all kosher.
He should have no issue with you doing this, if he objects, walk away no matter the reason.
Edited by Lincsls1 on Friday 26th February 12:26
I did this buying a car 20 years ago-was just a kid. Paid the guy and drive away. He settled the finance himself and sent me proof, but it was a risk I would not take now! Only thing that made me slightly easier about it was he was a solicitor in a law firm and any shenanigans would have cost him his job.
Just make sure you either see an online settlement figure or have a recent dated letter/email from the finance company (These can be sent to the seller quite quickly) and then confirm the bank details when you are on the phone to them.
Used to do this all the time, so log as you check the details and pay them direct you'll be ok. Also a few days later get the seller to get a clearance letter from the finance company and have him email you a copy/ Then you have proof the finance is settled. This usually takes a few days to clear on their system.
Used to do this all the time, so log as you check the details and pay them direct you'll be ok. Also a few days later get the seller to get a clearance letter from the finance company and have him email you a copy/ Then you have proof the finance is settled. This usually takes a few days to clear on their system.
Gassing Station | Car Buying | Top of Page | What's New | My Stuff