how to buy a car with outstanding finance on it?

shoestring25 · 26/08/14 - 20:53

right seen a car i want on auto trader did an HPI came up with outstandning finance rang up the seller and they confirmed it did. how do you then buy it? do i pay off the finance and if so how do we go about doing this?

tealady · 26/08/14 - 21:00

Brief summary here:
http://www.parkers.co.uk/cars/advice/selling/archive/Buying-a-used-car-with-outstanding-finance/
"if you're not happy with any arrangement or feel uneasy about buying the car, don't be afraid to walk away".

LostFool · 26/08/14 - 21:02

I wouldn't touch it. Plenty of other cars out there without any finance problems.

shoestring25 · 26/08/14 - 21:11

the seller needs to sell the car to pay off the finance, but needs to pay off the finance to sell the car catch 22.

so reading the parkers guide the seller should get a finance settlement letter i then pay off the finance directly then it should come up as HPI clear. then they sign the car over to me a i take that little slip that comes on the v5 and they send off the v5

[Deleted User] · 26/08/14 - 21:19

You must mad if you buy this car .

Maxatoria · 26/08/14 - 21:31

I'd walk away, if you give him the money who's to say he won't spend it on something else and leave you with basically a stolen car?

[Deleted User] · 26/08/14 - 21:58

Give it a wide berth. If the seller takes the cash and chooses not to settle the finance, then the finance company can come and take the car off you as they will be the legal owner.

LostFool · 26/08/14 - 22:10

shoestring25 wrote: »

the seller needs to sell the car to pay off the finance, but needs to pay off the finance to sell the car catch 22.

That may well be true but it's not your problem. Unless this car is a rare classic then there are going to be lots of identical ones available elsewhere with a clean history. You may think you are getting a deal but it's not worth the risk.

Nessun Dorma · 26/08/14 - 23:00

shoestring25 wrote: »

right seen a car i want on auto trader did an HPI came up with outstandning finance rang up the seller and they confirmed it did. how do you then buy it? do i pay off the finance and if so how do we go about doing this?

Seeing as the seller hid that information from you,. I'd walk away.

[Deleted User] · 26/08/14 - 23:16

klendathu wrote: »

You must mad if you buy this car .

Seconded. If he doesn't pay off the finance you may lose your car, not yours really but the finance companys.

NX-74205 · 27/08/14 - 00:06

Outstanding finance? Why does the word 'bargepole' instantly spring to mind?

Fizix · 27/08/14 - 00:16

NX-74205 wrote: »

Outstanding finance? Why does the word 'bargepole' instantly spring to mind?

This, don't touch it with one. Seriously, if they don't pay the outstanding finance you will lose the car.

Skyclad · 27/08/14 - 00:28

LostFool wrote: »

I wouldn't touch it. Plenty of other cars out there without any finance problems.

What (s)he said.

Check autotrader.com - bound to be another vehicle the same that is not on finance.

Do you know who the finance is through? If you are determined then It may be worth contacting them and seeing if they can sort everything for you (in essence terminate the existing contract, reclaim the vehicle and sell it to you).

Depending on the finance house you may have varying levels of success. If you do know who it is then PM me I may be able to give you a friendly contact. (If you don't know then pm me the reg

).

shoestring25 · 27/08/14 - 06:43

so the only safe way of doing this is for the owner to pay off the finance i then recheck the HPI. i can then buy the car as normal right?

gdjman68wasdigi · 27/08/14 - 06:49

Maxatoria wrote: »

I'd walk away, if you give him the money who's to say he won't spend it on something else and leave you with basically a stolen car?

Because you wait until it's hpi clear. It's not a massive problem, op just has to be sure it's paid

killjoy · 27/08/14 - 07:22

But if he takes the money and doesn't pay it off the op is out of pocket with no car.

Ethel_Fred · 27/08/14 - 08:32

Why has this thread lasted so long? Car owner lied, car has debt on it, you walk away from 'deal'

grumpyscot · 27/08/14 - 08:37

If on finance, the car is not his to sell - he must have finance company written approval first. And prospective buyers need written documentation from the finance company that, if the car is bought, then they redact any claim on the vehicle.

So messy, it's easier not to buy!

El Guapo · 27/08/14 - 08:40

shoestring25 wrote: »

right seen a car i want on auto trader did an HPI came up with outstandning finance rang up the seller and they confirmed it did. how do you then buy it? do i pay off the finance and if so how do we go about doing this?

Lol why would you pay off the finance? Unless the seller takes that off the selling price. It could actually work out good for you as long as you are careful as most people won't touch this car so you can knock the price down more. Good luck!

Nessun Dorma · 27/08/14 - 10:51

NX-74205 wrote: »

Outstanding finance? Why does the word 'bargepole' instantly spring to mind?

There is nothing wrong with considering the purchase of a car with outstanding finance, as long as the finance is cleared BEFORE the sale is completed. If there is a five year hire purchase agreement, why should the seller be tied to keeping the car for the full five years?

The time to get worried is when the seller starts hiding important facts about the car.

Nessun Dorma · 27/08/14 - 10:54

grumpyscot wrote: »

If on finance, the car is not his to sell - he must have finance company written approval first. And prospective buyers need written documentation from the finance company that, if the car is bought, then they redact any claim on the vehicle.

So messy, it's easier not to buy!

If it is a desirable car, at a desirable price, why not? If the finance company have agreed to the sale and have confirmed that they hold no interest in the car, what is the issue?

tealady · 27/08/14 - 11:05

Nessun Dorma wrote: »

There is nothing wrong with considering the purchase of a car with outstanding finance, as long as the finance is cleared BEFORE the sale is completed. If there is a five year hire purchase agreement, why should the seller be tied to keeping the car for the full five years?

The time to get worried is when the seller starts hiding important facts about the car.

Exactly. I don't think people realise what financial tools are available and used by companies and people such as selling all/part of a loan book, factoring, selling your sales book, using a third party to pay your suppliers. Selling your endowment policy to a third party.
Paying the finance company is just another example.
As long as the OP deals direct with the Finance Company and gets their agreement and pays them direct, then it is no more risky than a private sale.

shoestring25 · 28/08/14 - 16:53

update not getting it i offered asking price if they would settle finance and provide poof it had been settled they said they wont do that. and that its perfectly acceptable to sell a car with outstanding finance on it and that " I was living in the past " if i wouldnt buy pay the finance on it.

Nessun Dorma · 28/08/14 - 21:14

shoestring25 wrote: »

update not getting it i offered asking price if they would settle finance and provide poof it had been settled they said they wont do that. and that its perfectly acceptable to sell a car with outstanding finance on it and that " I was living in the past " if i wouldnt buy pay the finance on it.

As I suspected, you were wise to walk away. Trouble is, he will get some schmuck to buy it, without having the finance paid off. You might want to drop the finance company a line, to let them know what he is planning.

[Deleted User] · 28/08/14 - 21:17

You know the seller is gonna scam the hell out of you if you agree to this?

And you will have absolutely ZERO redress.

I cant believe you are even thinking about it - WALK AWAY my friend!!! Plenty of other cars in the sea....

Hey there!

Quick Links

how to buy a car with outstanding finance on it?

Comments