Car on finance - how to buy

jackcramerr · September 30, 2016

The owner has shared payout figure that came straight from the lender.

He kept the lender in cc so I will discuss with them as well as this.

steve2006 · September 30, 2016

Who's name is the V5C in at present?

jackcramerr · September 30, 2016

The company this guy owns.

jackcramerr · September 30, 2016

To clear it up, the he sent the vat invoice to me with the settlement figure from finance comapny. Finance company are in cc of email. Bank details of both finance comapny and his company are there.

I am trying to understand how is it not different then buying any other car. E.g. we pay a person and get an invoice. In this case I pay this guy and finance company instead of all the lump sum to his account.

There is no protection in any case is there? In this case, at least I know the debt is cleared off as I pay it instead of him. And because the finance company stays in loop, ...

I read the same process on HPI website:

The finance company can’t give you the settlement figure because of the Data Protection Act, but if the vendor gets it you can confirm it with the lender. You can then buy the car less the value of the settlement figure, paying the latter directly to the finance company. If the settlement figure is greater than the asking price of the car, it’s up to you to reach an agreement with the vendor and finance company. Things can get messy in this situation, but most things can be resolved with negotiation.

The best way is he clears the debt but he does not have liquid cash.

Linas.P · September 30, 2016

Yeah I was about to say, that I can see the only reason for this deal is his liquidity, so he has no money to cover for the car before actually selling it.

To be honest I see not problem with above, but for finance company being in copy is not enough, they need to confirm they agree. And I guess it goes without saying - keep copies of all correspondence in case finance company going to come after you for what ever extra charges on later day - you can simply say - "here is evidence, you been on the copy, you have agreed with figure, I have paid you that - bugger-off".

Good luck with your purchase!

djkenn · October 1, 2016

This has been an interesting series of posts. My final comment would be that I would ask the Finance company to confirm in writing that they have removed their rights over the car on Experian. If it's a small finance company it is almost certainly manual.

Hope it's a cool car.

Linas.P · October 2, 2016

I guess if you have representative of the finance company confirming the amount of the settlement and you have receipt proving you have paid particular amount, then it should be sufficient. But I completely agree with Duncan, even though they suppose to do it automatically... you know people tend to forget, so it would be great to remind them and have that confirmation. Last thing you want is that 3 years down the line when you are about to sell it, your buyer comes saying that car shows outstanding finance on it and you no longer have ways to contact finance company or seller.

As well there are 3 credit agencies - Experian, Equifax and Callcredit. As well it can take up to a month (or sometimes even 2) for record to update, so confirmation in writing from finance company should be sufficient.