Buying a car which currently has outstanding finance
Buying a car which currently has outstanding finance
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aporschefan

Original Poster:

302 posts

259 months

Friday 14th April 2023
quotequote all
I'm buying a 911 from a private dealer who is not known to me. He's selling the car on behalf of a client of his. The dealer has confirmed there is finance outstanding on the car and that the dealership will settle this once I've paid for the car.

What he's saying sounds logical but how do I know the debt would be settled in full?

What can I do to protect myself?

Whats the normal process in this situation?

Any input will be greatly appreciated.

TDT

6,018 posts

137 months

Friday 14th April 2023
quotequote all
Ask for a copy of the settlement letter.

Stand with them in person to make sure the transfer is made all the way to finance house.

Do it in the morning and not on a Friday if possible so that there is time for funds to clear all the way through.

Mankers

662 posts

187 months

Friday 14th April 2023
quotequote all
I did this with a private purchase on a £100k car. You can request a settlement statement (to see how much finance is outstanding).

I called the finance company on a no names basis, quoted the policy number etc and explained that I was going to settle the finance and buy the car ( paying the seller the net difference) they said this was all ok.

However, on the day the finance company would not accept the payment from me, it had to come from the ‘owner’ of the debt. Anyway we got it sorted in the end and I got the closing statement etc but it was a bit of a faff and took quite a while…4 or 5 hours! Main issue was the seller had a £50k limit per day from his bank!

As has been stated, leave plenty of time. Might be easier / better through a dealer but they might not be able to settle someone else’s finance if on SOR…. Worth chatting it through with them in advance.