Used Cars With Finance...
Discussion
Hi guys, I wonder if you could help with a little research....
I'm trying to get some information on peoples experiences buying used cars with outstanding finance - that is, cases where the seller has explained this to you, not cars with a hidden past and outstanding finance the buyer did not make you aware of! If you have any experiences related to the following, your input would be appreciated....
1. Have you ever sold a used vehicle that had outstanding finance and cleared this amount before you started to advertise it? Did you do this using existing cash reserves, a short term loan, credit card / AmEx...or some other solution?
2. Have you ever bought or sold a used vehicle where you have both come to an agreement to clear the finance as part of the transaction? For example:
Mercedes : £32,000
Finance Outstanding : £27,000
Amount Payable to Finance Company : £27,000
Amount Paid to Seller : £5,000
How did you structure and carry out a deal like this so both parties are protected?
3. Would you avoid point blank to purchase a used vehicle under these circumstances due to the complications? Do you always trade your car into a dealership when it has outstanding finance to avoid this sort of problem?
4. Have you ever traded a vehicle to a dealership with outstanding finance and experienced an unacceptable delay between leaving the vehicle with them and the date the finance is cleared? I.e., has a dealer basically ever used you to subsidise their stock financing?
As I say any experiences or comments you have in this area much appreciated....mainly talking about cars in the £20,000 - £100,000 arena, i.e. vehicles that are quite likely to have large amounts outstanding on them. Thanks!
I'm trying to get some information on peoples experiences buying used cars with outstanding finance - that is, cases where the seller has explained this to you, not cars with a hidden past and outstanding finance the buyer did not make you aware of! If you have any experiences related to the following, your input would be appreciated....
1. Have you ever sold a used vehicle that had outstanding finance and cleared this amount before you started to advertise it? Did you do this using existing cash reserves, a short term loan, credit card / AmEx...or some other solution?
2. Have you ever bought or sold a used vehicle where you have both come to an agreement to clear the finance as part of the transaction? For example:
Mercedes : £32,000
Finance Outstanding : £27,000
Amount Payable to Finance Company : £27,000
Amount Paid to Seller : £5,000
How did you structure and carry out a deal like this so both parties are protected?
3. Would you avoid point blank to purchase a used vehicle under these circumstances due to the complications? Do you always trade your car into a dealership when it has outstanding finance to avoid this sort of problem?
4. Have you ever traded a vehicle to a dealership with outstanding finance and experienced an unacceptable delay between leaving the vehicle with them and the date the finance is cleared? I.e., has a dealer basically ever used you to subsidise their stock financing?
As I say any experiences or comments you have in this area much appreciated....mainly talking about cars in the £20,000 - £100,000 arena, i.e. vehicles that are quite likely to have large amounts outstanding on them. Thanks!
Yes mate.
All parties go to the bank.
Buyer sends cash to seller and to finance company to clear outstanding balances.
Go to pub.
Come back in a few hours and get confirmation that money has been received by all parties.
Ask admin lady at finance company very nicely to immediately notify HPI that finance is clear and to send email to seller that finance company has no interest in car.
HPI check to confirm finance is clear.
Sign paperwork and drive off.
All parties go to the bank.
Buyer sends cash to seller and to finance company to clear outstanding balances.
Go to pub.
Come back in a few hours and get confirmation that money has been received by all parties.
Ask admin lady at finance company very nicely to immediately notify HPI that finance is clear and to send email to seller that finance company has no interest in car.
HPI check to confirm finance is clear.
Sign paperwork and drive off.
I am about to trade my car in for a new (to me - second-hand) car at an indy dealers.
My car has outstanding finance.
They are taking it and paying off the finance for me (they prefer to do this to ensure it is paid off).
I am picking up the car a week on Friday and taking mine in the same day. They don't need the finance details until that day.
All seems good to me!
cheers
M
My car has outstanding finance.
They are taking it and paying off the finance for me (they prefer to do this to ensure it is paid off).
I am picking up the car a week on Friday and taking mine in the same day. They don't need the finance details until that day.
All seems good to me!
cheers
M
Yes,
I sold a Skoda Octavia vRS TDI with finance outstanding last year. I made it clear to the buyer at the time that this was the case, I also had a valid settlement figure on a letter from VW finance. He came to collect the car, he inspected it, we went into town, he transferred the full amount for the car into my bank account (cash), it was just over £15000. We then went back to my house, I called VW Finance, settled the full amount over the phone on my debit card. Buyer was satisfied that this was complete, he then drives off in the Octavia. Simples!
I sold a Skoda Octavia vRS TDI with finance outstanding last year. I made it clear to the buyer at the time that this was the case, I also had a valid settlement figure on a letter from VW finance. He came to collect the car, he inspected it, we went into town, he transferred the full amount for the car into my bank account (cash), it was just over £15000. We then went back to my house, I called VW Finance, settled the full amount over the phone on my debit card. Buyer was satisfied that this was complete, he then drives off in the Octavia. Simples!
Yes, it's actually pretty easy; yet it puts many people off buying a good car - all the more for us!
I bought my Z4 for £17,500 and the car still had £22,000 outstanding. He paid off the extra before I got there, and I spoke to BMW finance and paid off the rest - easy!
They then sent an email with a letter stating it was cleared, to both of our addresses.
All in all, took about 2 hours, and I drove away happy in my new car!
I bought my Z4 for £17,500 and the car still had £22,000 outstanding. He paid off the extra before I got there, and I spoke to BMW finance and paid off the rest - easy!
They then sent an email with a letter stating it was cleared, to both of our addresses.
All in all, took about 2 hours, and I drove away happy in my new car!
Thanks guys, the reason I am asking......
When we do these deals, they require an element of trust. You can reduce risks by going to the bank with the other party, asking for conformations etc....but it's not impossible to be scammed. I sold my M3 this way years ago and it did strike me if this guy wasn't legit, he could have someone at the bank in on it. Unlikely, but not impossible....
If there was a service offered by a third party to act as a mediator, backed by a major bank and offering safety and security to both sides of the deal....would you use it? Or do you feel there is little to no risk and that it would be unnecessary?
Do you think a service like that would give peace of mind to potential buyers / sellers who would otherwise avoid transactions involving cars with outstanding finance all together?
When we do these deals, they require an element of trust. You can reduce risks by going to the bank with the other party, asking for conformations etc....but it's not impossible to be scammed. I sold my M3 this way years ago and it did strike me if this guy wasn't legit, he could have someone at the bank in on it. Unlikely, but not impossible....
If there was a service offered by a third party to act as a mediator, backed by a major bank and offering safety and security to both sides of the deal....would you use it? Or do you feel there is little to no risk and that it would be unnecessary?
Do you think a service like that would give peace of mind to potential buyers / sellers who would otherwise avoid transactions involving cars with outstanding finance all together?
Edited by mikedav on Thursday 3rd February 23:23
mikedav said:
Thanks guys, the reason I am asking......
When we do these deals, they require an element of trust. You can reduce risks by going to the bank with the other party, asking for conformations etc....but it's not impossible to be scammed. I sold my M3 this way years ago and it did strike me if this guy wasn't legit, he could have someone at the bank in on it. Unlikely, but not impossible....
If there was a service offered by a third party to act as a mediator, backed by a major bank and offering safety and security to both sides of the deal....would you use it? Or do you feel there is little to no risk and that it would be unnecessary?
Do you think a service like that would give peace of mind to potential buyers / sellers who would otherwise avoid transactions involving cars with outstanding finance all together?
I think you're thinking a little too much into it! You're paying the finance company directly. You then wait with the seller until the money has cleared (or in my case, wait outside with my car parked behind his car When we do these deals, they require an element of trust. You can reduce risks by going to the bank with the other party, asking for conformations etc....but it's not impossible to be scammed. I sold my M3 this way years ago and it did strike me if this guy wasn't legit, he could have someone at the bank in on it. Unlikely, but not impossible....
If there was a service offered by a third party to act as a mediator, backed by a major bank and offering safety and security to both sides of the deal....would you use it? Or do you feel there is little to no risk and that it would be unnecessary?
Do you think a service like that would give peace of mind to potential buyers / sellers who would otherwise avoid transactions involving cars with outstanding finance all together?
Edited by mikedav on Thursday 3rd February 23:23
).mikedav said:
Thanks guys, the reason I am asking......
When we do these deals, they require an element of trust. You can reduce risks by going to the bank with the other party, asking for conformations etc....but it's not impossible to be scammed. I sold my M3 this way years ago and it did strike me if this guy wasn't legit, he could have someone at the bank in on it. Unlikely, but not impossible....
If there was a service offered by a third party to act as a mediator, backed by a major bank and offering safety and security to both sides of the deal....would you use it? Or do you feel there is little to no risk and that it would be unnecessary?
Do you think a service like that would give peace of mind to potential buyers / sellers who would otherwise avoid transactions involving cars with outstanding finance all together?
As Pulse said, it sounds like over complicating a very simple and straightforward transaction. No doubt someone would have to pay for this and frankly, sometimes I wouldn't trust some 'major high street banks' to make me a cup of coffee.When we do these deals, they require an element of trust. You can reduce risks by going to the bank with the other party, asking for conformations etc....but it's not impossible to be scammed. I sold my M3 this way years ago and it did strike me if this guy wasn't legit, he could have someone at the bank in on it. Unlikely, but not impossible....
If there was a service offered by a third party to act as a mediator, backed by a major bank and offering safety and security to both sides of the deal....would you use it? Or do you feel there is little to no risk and that it would be unnecessary?
Do you think a service like that would give peace of mind to potential buyers / sellers who would otherwise avoid transactions involving cars with outstanding finance all together?
Edited by mikedav on Thursday 3rd February 23:23
If you really want to do it this way, there are already a couple of escrow services available.
You mention other Escrow services exist, can you name them?
As I say I've done it before as above and don't have a major issue with it personally; I'm thinking about the huge number of buyers put off by the idea of buying a part financed car...It reduces your market to those who understand the process. Having a secure third party might clear up the confusion for those put off by it
As I say I've done it before as above and don't have a major issue with it personally; I'm thinking about the huge number of buyers put off by the idea of buying a part financed car...It reduces your market to those who understand the process. Having a secure third party might clear up the confusion for those put off by it
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