type-rob

Good afternoon all,

I have found a car which I wish to purchase however it has outstanding finance on it which is around the value of the car.

How can this be cleared off?

Is there a way that this is usually done as I need to know it is clear before driving away. I have been told my money will clear it.

I cannot pay the company by debit card apparently as they won't accept it but can pay bankers draft which takes a couple of days.

In a catch 22 here and not sure how to deal with it...

Anyone experienced this before?...

Gambit

iTrader: (6)

so what options have the finance company given you? i find it very odd they wont accept debit card. how about bank transfer?

daveyj

iTrader: (1)

Is it a private sale?

Hawkeye D

Ideally, the garage you're buying it from, or the private seller should settle it and give you a full letter of clearance from the finance company.

If it's a private seller, I would walk away to be honest. How do you know they will clear the finance? Then you could get the finance company chasing you.

How do you know if you settle the finance that the seller won't vanish etc.

Tricky one, but not one I'd entertain personally. Sorry, that's just my input.

type-rob

Been on to his finance company and I think there is a way! But thanks in advance!

Anything to know though I would still value comments,

Thanks

type-rob

Sorry just read the above. They will accept a transfer which takes 2 hours to clear, will mean waiting around but I was getting the impression it would be a 48 hour turn around which leaves me in the dark for two days.

Really appreciate the input. I will be clearing it myself so I know it is done, we Yorkshiremen do our best to avoid bad deals!

Gear Head

iTrader: (2)

Would still walk away. You never know what will bite you on the **** with something like that.

type-rob

I would have thought if I paid the finance myself so I know it is clear then HPI check it there shouldn't be any further financial commitments?

SAM-UK300

iTrader: (8)

I would be too worried personally

scubbay

iTrader: (61)

If you can get a settlement figure in writing send a bank draft direct to the finance company. Have bought before this way. Take the draft to the current owner and post it off with him present. Take possession immediately. He should be happy enough that payment has been covered and you also know it's been sent.

bigsigh

iTrader: (4)

As scubbay says there is no reason why you cant do the deal, as long as you are aware you are dealing with the finance company its the same as any other deal.

Sold my last car with the finance owed. We went to the buyers bank, he did two transfers , one to my account and one to the finance company, we went and got a coffee and about an hour later i rang to confirm they had received his money , they confirmed it was showing on their system and the deal was done.

Hawkeye D

Yes, but equally on the other hand for the seller, bankers drafts can be cancelled.

I remember transferring £10k into the sellers account online at his house when I bought mine. We had to go to the bank at his nearby town as he didn't do online banking - which I was aware of. By the time we got there, my money was in his account (NatWest to RBS)

We didn't take the Subaru, just both keys, but I was worried that when we got back the Scoob could have gone. How did I know that there wasn't a third key his mate had and would drive it away etc.

All these things went through my mind, and was left feeling quite sick to be honest. It's a big thing parting with that much money and having to let the car you have just paid for out of your sight.

It's all about risk and trust, but I didn't exactly know this guy. Had he have had online banking, we wouldn't have needed to leave the house.

All was well, but I remember how long the 10 minute drive felt from the bank back to his house!!!

type-rob

I can imagine this whole situation is going to be grim.

My plan,

Go see the car tonight, do final checks, pay deposit. I have all the details to pay the finance.

Leave with V5 so he cannot sell in mean time, settle finance tomorrow morning, return on evening with V5 to sign and send and to collect car.

From his point of view, the worst that can happen is I switch the car to my name and take the debt anyway, he is no worse off.

From my point of view he cannot sell the car in the meantime, and I have an address the car is registered to rain a whole world of pain down on should anyone try playing silly bu99ers.

thoughts?...

XDevil666

sounds a bit dodgy to me pal! - could be completely wrong but it sounds like one of those gumtree specials!

if involved the word "western union" - pack your bag and leave

lordharding

iTrader: (1)

If it was totally on finance
Do you ever think he had spare cash to get it serviced or decent super unleaded or decent tyres ?

Busterbulldog

iTrader: (1)

When I sold my wr1 years ago we went to a main branch of his bank and the buyer transferred the funds directly to the finance company,straightforward transaction.

bustaMOVEs

iTrader: (31)

Hi rob, if I was in this situation, and was happy with car etc and a good price, then pay him the money minus any finance remaing inc fees etc if any and take the car, then contact finance company direct and clear on behalf of seller.
Done

Unless the balance is more than your paying for car then either walk away or make him pay it off with proof document etc or get the remaing balance off him in cash and sort it yourself

bigsigh

iTrader: (4)

@busta it's illegal for the owner to "sell" the car in the way u have described , the finance company's interest in the car must be settled before it changes hands

type-rob

Transactions are all pending, I will report back if all goes to plan or gather many angry men together if not! ...........

bigsigh

iTrader: (4)

LOL, it will be fine

bustaMOVEs

iTrader: (31)

Maybe so, but at least you know that it's done if done yourself

type-rob

All done, finance company confirmed no longer have financial interest and there is a shiny 330s on my drive to add to the collection!

Result!

sharpy2010

iTrader: (1)

Mine is on finance, its never had anything but Super Unleaded, ever. Its also got very good Potenza R001 on every corner, and is serviced on time, every time.

I didn't have a lump sum to pay for the car, but I could afford the upkeep if I purchased the car on finance, so it can be done.