buying with outstanding finance agreements ?
Discussion
I no i'm not ment to post the same topic in to forums but were talking a shed load of money here!
Any legal eagle that has the corner on this one ?
As posted in TVR General Gossip:
Ok, so you've picked the shinning beastie that you want to buy, you've kicked the tires and looked under the floor mats, and well stood there and made noises....agreed the money, done the HPI check and all that
now you have to part with the money. 'Bye the way, it's got a finance contract still running on it'
'Yes i spotted that on the HPI'
'I've called the finance company and they've told me the settlement figure is £10 so if you pay that direct to them we're sorted'
Is this the case? Who really owns a car once the V5 is signed off ? What's the story on oustanding finance that wasn't even yours (HP that is) ?
Anybody know ? should I address this to the uniformed members of this Forum ?
it's a goodie!
thanks people
SP
If you pick up a motor from a private individual, sign the V5 in the right boxes, agree to pay of the finance at the money you've been told - what happens if the finance company turn round and say "You owe us more money" ok so you go back to the seller with the boys, but he/she rightly says "not my problem, I sold it to you for £10
Any legal eagle that has the corner on this one ?
As posted in TVR General Gossip:
Ok, so you've picked the shinning beastie that you want to buy, you've kicked the tires and looked under the floor mats, and well stood there and made noises....agreed the money, done the HPI check and all that
now you have to part with the money. 'Bye the way, it's got a finance contract still running on it'
'Yes i spotted that on the HPI'
'I've called the finance company and they've told me the settlement figure is £10 so if you pay that direct to them we're sorted'
Is this the case? Who really owns a car once the V5 is signed off ? What's the story on oustanding finance that wasn't even yours (HP that is) ?
Anybody know ? should I address this to the uniformed members of this Forum ?
it's a goodie!
thanks people
SP
If you pick up a motor from a private individual, sign the V5 in the right boxes, agree to pay of the finance at the money you've been told - what happens if the finance company turn round and say "You owe us more money" ok so you go back to the seller with the boys, but he/she rightly says "not my problem, I sold it to you for £10
At the risk of sounding like an armed traffic cop, "Step away from the car"
If the car is on HP, the finance company own it. Only they can sell it. The V5 shows the registered keeper, not the owner. The finance company can ask for any outstanding balance to be paid. If it's not then they can take the car back, whoever is now the registered keeper.
In cases like this, if you must proceed, deal with the finance company direct for redemption figures, and payments.
If the car is on HP, the finance company own it. Only they can sell it. The V5 shows the registered keeper, not the owner. The finance company can ask for any outstanding balance to be paid. If it's not then they can take the car back, whoever is now the registered keeper.
In cases like this, if you must proceed, deal with the finance company direct for redemption figures, and payments.
this happened to someone i know and we later found out that if more than a certain percentage of the finance has been paid they cannot take the vehicle but can persue the person with whom the contract is with.Not sure what the ammount was but it was linked to the time left on the contract too.The friend in question did'nt have the car repossesed either,the finance company went after the person instead.I do agree with BTB,avoid it,theres always another car around the corner.....unless its something ultra rare.
I sold my Tuscan in this way.
I told the guy - up front - that there was outstanding finance on it.
I phoned the finance company and offered a payment in full, via his switch card (I know a bit dodgy). The finance company were more than happy to take the payment and since the amount was about £22k they even done some severe security checks on the guy. The payment was taken and confirmed by the finance company that day and he handed me the cash for the remaining little bit of profit I made!
I think I was very lucky BUT I don't see that you should walk away just because it has outstanding finance as long as you can pay it off while doing the transfer I don't really see the problem.
I took his Name, Address, Passport number, Driving license details, Switch card details, the lot. He was happy to provide all - Nothing short of faking all his ID would have caused alarm!
I told the guy - up front - that there was outstanding finance on it.
I phoned the finance company and offered a payment in full, via his switch card (I know a bit dodgy). The finance company were more than happy to take the payment and since the amount was about £22k they even done some severe security checks on the guy. The payment was taken and confirmed by the finance company that day and he handed me the cash for the remaining little bit of profit I made!
I think I was very lucky BUT I don't see that you should walk away just because it has outstanding finance as long as you can pay it off while doing the transfer I don't really see the problem.
I took his Name, Address, Passport number, Driving license details, Switch card details, the lot. He was happy to provide all - Nothing short of faking all his ID would have caused alarm!
bobthebench said: At the risk of sounding like an armed traffic cop, "Step away from the car"
If the car is on HP, the finance company own it. Only they can sell it. The V5 shows the registered keeper, not the owner. The finance company can ask for any outstanding balance to be paid. If it's not then they can take the car back, whoever is now the registered keeper.
In cases like this, if you must proceed, deal with the finance company direct for redemption figures, and payments.
that is wrong. due to privacy laws only the debtor can get a settlement agreement.
the finance company has title to the vehicle, but it can be purchased if the vendor / debtor asks for a settlement figure and pay this in full by the due date.
Essentially that is what you do if you trade the vehicle in or sell to a dealer.
in a private sale, if the seller is upfront about the finance situation and can provide a settlement quotation then all you do is wire the money to the finance co and pay the vendor any balance (or recover any negative equity from him.) If you know the figure they will confirm if it is correct and when it needs to be paid by.
Put the whole transaction in writing and get the vendor to sign, done deal, saved a packet and totally legal.
Bennno
>> Edited by bennno on Monday 13th January 16:39
Nah - as long as you have the required details from the person with the finance agreement, anyone can obtain a settlement figure. It's generally easier to ring the finance company whilst the person is there - exactly the same as any dealer would do if you wanted to part exchange the car.
bennno said:that is wrong. due to privacy laws only the debtor can get a settlement agreement.
J
joust said:Nah - as long as you have the required details from the person with the finance agreement, anyone can obtain a settlement figure. It's generally easier to ring the finance company whilst the person is there - exactly the same as any dealer would do if you wanted to part exchange the car.
bennno said:that is wrong. due to privacy laws only the debtor can get a settlement agreement.
J
nope, not since about April time last year.
not even a main dealer can get a settlement figure on your behalf if you are the debtor, even if you part ex the car in.
they will confirm a figure if you give it to them but are legally not allowed to divulge the information to anybody else even if the debtor has authorised the other person!!
Bennno
>> Edited by bennno on Monday 13th January 19:29
So how have *4* dealers managed to do just the that on both my Elise and X5?????? (the 3 dealers on the Elise over Sept/Oct, the X5 at one different dealer in Oct)
bennno said:nope, not since about April time last year.
not even a main dealer can get a settlement figure on your behalf if you are the debtor, even if you part ex the car in.
I think you may not actually appreciate what is actually happening...??
Nope - sorry - the two (different) finance companies just asked the normal security questions (that I had already given to the dealer - they all asked for 5/6 bits of my info) and then gave them the figure. They just rung up, said "I would like a settlement figure", gave the registration number, my name, my address and my DOB in one case, my Bank account number in the other cases, and back came the figure.
they will confirm a figure if you give it to them but are legally not allowed to divulge the information to anybody else even if the debtor has authorised the other person!!
You work in the industry Benno?
J
Perhaps its just maranello, porsche and daimler chrysler financial services that wont give out the settlement info to anybody, dealers included.
I forget the legal term used, but is basically client confidential information - for sure if you are there and the dealer phones the finance company on your behalf, says you are there and asks the questions to you they would probably talk, or if they told a fib and said they were you - but otherwise no.
But back to the original question of buying privately, you would not be able to get a settlement figure if you just called up and asked for it.
It would be comparible to calling up the Doctors and asking to see somebodys medical history. They will confirm if the settlement figure you have is correct, or if the loan is settled but thats it.
Bennno
I forget the legal term used, but is basically client confidential information - for sure if you are there and the dealer phones the finance company on your behalf, says you are there and asks the questions to you they would probably talk, or if they told a fib and said they were you - but otherwise no.
But back to the original question of buying privately, you would not be able to get a settlement figure if you just called up and asked for it.
It would be comparible to calling up the Doctors and asking to see somebodys medical history. They will confirm if the settlement figure you have is correct, or if the loan is settled but thats it.
Bennno
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