Buying a car knowing there is outstanding finance

[moonie6041]

Hi everyone I`m hoping someone can help me with my problem. I am looking to buy a car in a private sale, the only point is I know there is outstanding finance on it. The present owner informed me of this and stated that the finance would be paid off within seven days of the sale, he also told me that he has informed his finance company of his intentions. Now my problem is if I had a bill of sale written up with this information included would I then be covered legally. I have heard of all these horror stories about companys taking vehicles back because the client has stopped paying.

[pompeyfaith]

Exactly moonie and to avoid a load of hassle i would steer clear of this one.

 

I would be inclined to play safe and look elsewhere.

 

When ever you buy a car always data check it.

 

Regards

 

Leon

[moonie6041]

Thanks Pompeyfaith I have even considered getting video proof of the transaction via a friend filming it. Not sure what to do if anyone else has any imput the please feel free to post even if its just to say about there own past problems.

[ReasonableRon]

If the seller has got a letter from the finance company confirming the settlement figure then it might be and idea that YOU send the money to them instead - at least you will definitely know that it has been paid off.

[Weird Al Yankovic]

Thanks Pompeyfaith I have even considered getting video proof of the transaction via a friend filming it. Not sure what to do if anyone else has any imput the please feel free to post even if its just to say about there own past problems.

 

A video of the transaction between you and the seller would not change the fact that there is outstanding finance on the car-you would still need to rely upon the seller to settle with the finance company.

 

ReasonableRon makes a good suggestion, try that.

[raydetinu]

But if you pay the loan off, what guarantee is there he will still sell the car to you? and at what price if he does? fraught with danger unless you toally trust this guy IMO.

[robin9342]

I think Ron meant for the cost of the finance to be deducted from the selling price and then paid to the finance co. after the OP has the car.

[aj84]

I sold a car a couple of years back which was on finance (with permission of the finance company).

I informed and listed the vehicle online with an honest figure left on the car (22k) which would be settled on the DAY of transfer to the new buyer.

 

The new buyer was in contact with me for about a week during the transaction when he finally came down to pick the car up

 

We picked him up from the station, took him straight to the bank (After the test drives etc)

And AT the bank, we settled it by calling Black Horse...

I paid the 2k and he paid the 20k

We both were on the phone, in the bank, and both got confirmation that the car was settled.

 

 

Now with 7 days in your case... I'm not 100% sure its safe because technically, it is still in ownership of the finance company

There is a clause you cant even sell it unless you have clear permission of the finance company.

[ReasonableRon]

I think Ron meant for the cost of the finance to be deducted from the selling price and then paid to the finance co. after the OP has the car.

Yes - sorry of my post was inclear. Let's say you buy the car for £5k and he owes £3k to the finance company. When you collect the car, give him £2k and send the rest to the finance company. At least you know that the car is paid off for definate.