Buying A Used Car With The Car Still On Finance

[demkai]

Hi guys,

Today I found out a car i really like, The problem is the person selling the Car has it on finance. Have anyone else ever brought a Car with this problem? What sort of agreement did you come to? I just want to know of any ideas that would be good?

Thanks

[kam05]

Best thing to do is to pay the finance company directly, do not pay the person selling the car. As far as the finance company is concerned, they are the owners of the car, not the registered keeper (the person selling the car in this case).

You could pay the person selling the car, but what happens if they don't settle their outstanding finance with the finance company? The finance company will come knocking on your door and you will loose: a. Your money (that you paid to the person selling the car) b. The car itself.

[Steve ( West Mids )]

You need a current statement with balance, then contact the finance company tell them your intentions and confirm they would be happy for you to pay it off once you had purchased the sellers interest in the car. After all the finance company currently own the car.

Make sure everything checks on the HPI too, presumably the seller doesn't one to pay it off ( or can't ) before you buy it?

[WylieCoyote]

Done properly it's totally legit and possible. As Steve and Kam have said, make sure you pay the finance company or else you'll end up losing everything. Be extra careful when dealing with finance because you can very easily and quickly lose everything. Do everything by the book and as the finance company say and you're fine.

[BosniaLexus]

It depends - if the car is legally the property of the finance company, then the seller is not entitled to sell it (example Hire Purchase or finance lease, where the car is legally owned by the finance company until the final payment is made/or finance settled.) Otherwise, you are OK. If the seller has told you about finance, then its a good sign. If you found out about it via one of these car checking websites and the owner did not tell you, then you must wonder what other information has been withheld

[T7RY B]

A few years ago I bought a Discovery for my company from a private seller. He owed about 4K to the finance company. He telephoned the finance company in front of me and after speaking to them he put me on the telephone. They gave me the outstanding balance and agreed that if I paid the outstanding balance to them DIRECT then they would send me a document that the car was no longer on finance. I sent them a cheque recorded delivery with all my details. ( i GOT THE OWNER TO SIGN THE LOG BOOK. and also a receipt for the 4K to the finance comany. They (finance company) telephoned me the next week and said the cheque had cleared and that the paperwork was in the post and that I could pick the car up. I paid the balance to the owner and took the car. No problem.

It would have been done in an hour if I had paid by credit card. Just make sure that you do NOT under any cicumstances pay the seller ALL the money and expect them to pay the finance company. They could still take the car from YOU if the seller didn't pay the Finance company.

[demkai]

Hey guys,

Thanks for the reply. I have sorted it out with the guy. He changed the finance into a Personal loan so i could pay him and he pay the company. I checked with HPI and they said there was no outstanding Finance on the Car. Phoned the company too.

[Steve ( West Mids )]

Result :)

[kam05]

Excellent.

So, what have you bought? Details?

Post up some pics if you can.