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.