Nigel H

I'm just about to buy a 2nd hand car off somebody. I know there is HP owing on the car, but the seller has told me this will be paid off before I buy it from him.

My questions is this - what level of proof do I need to see? A letter from the HP co saying that is paid off, or a letter from the seller which says he has paid it off. I'd be happier with the former, but I would appreciate any advice on the matter.

NotoriousREV

How are you paying for the car? If possible I would advise you paying the HP company directly and the rest of the money to the car owner.

Paulo P

iTrader: (42)

I was going to say the above

Nigel H

Could I ring the HP company and get confirmation?

misty

I nearly bought a Lotus Esprit a few years back, when I did a HPI check, it showed outstanding finance. Told the seller (dealer) who said it would be paid off at the month end when all bills are settled. Rang the finance Co and asked what the crack was. They said "as I had rung them, I now knew it had finance and would be liable for full payment if it was not cleared!! They also said had I not rung them and the seller defaulted I wouldn't have had to pay as, "as far as they were concerned I didn't know it had outstanding finance.
Make sure it's cleared mate before you buy it!! better safe than sorry.
dave

Nigel H

The seller told me that he's paid it off now. I'm planning to pick the car up on Friday. If I get it HPId tomorrow I wonder if it will come as clear.

misty

Doubt it! Ring the finance Co and ask for written confirmation matey
dave

MAC76

I buy cars for a living....i would go there with a draft for him and a draft for the finance company. He can check the authentisity of the drafts by ringing your bank, you can then both go to the post office and send the draft to the finance company recorded delivery....that way you both know its paid and everyone is happy.
Personally if he would not do it that way i would walk away. You need to protect yourself because if its not paid the finance company will be knocking on your door!
I hope you get it sorted

Just read the post properly.....if he has paid the finance off with a chq the finance company will usually take 10 days to pay it off. Ask him to cancel his chq and then go with the above plan. If he has done a TT it should show as clear on thier records but i doubt it will be off the hpi register

[Edited by MAC76 - 1/14/2004 4:16:41 PM]

jason4656

i just bought a car in this situation also, what happened was i met up with him at the finanace company where he paid off the remainder with a draft, then they gave me a letter saying it was clear, and it will take a while to come off the register

Nigel H

Thanks for the advice chaps

I've just spoken to the seller and he's cool about the whole thing. He'll provide me with written evidence that the HP is paid off. To be sure I could then ring the HP and co and check I suppose.

misty

WOW! All this just to buy a car!! I hope it's worth it m8?
and we want to see pics pretty sharp too.
dave

Nigel H

Hmmmm. I didn't declare the type of car

/sheepish face and red cheeks

It's a Smart

/colour gradually returns to cheeks

I have a foto of it, but I'm not sure a) it's worth posting and b) I don't know how to post

RUFocused

Is there any differance between hp finance and a bank loan, thing is i want to change my car soon and owe a small amount to the bank. If i put my car in p/x for a new one should i tell them i owe x amount, as i would be paying the remainder in cash for the new car and not borrowing any money from anywhere.

Dracoro

Is the bank loan secured on the car?

RUFocused

Err nope don`t think so.

Tiggs

if the bank load is unsecured then do what you like with the car...its not conected to the debt.

47 NAT

I've known cars to still show that they owe finance 6 months after its been paid and cleared. As long as you speak to the Finance Company and they can send confirmation in writing, then thats usually sufficient .... Sometimes in can be a right ordeal

Nath

Nigel H

Update (for those who care )

The money was paid off, but it will take 7 working days to be cleared by the Finance House