Buying a car with finance owing...

[hunt123]

Hi

I've seen a car advertised that I like the look of however it states there's "finance owed and will pay it off with funds from the sale".
I've bought many vehicles over the years but never where the seller states they'll pay off finance owed on the vehicle during the sale.

Have you bought a car in these circumstances? What exactly happens? What do I need to watch out for? Etc.

Thanks in advance.

[Mercdriver]

Two cheques, one to finance company, one to owner. Do not trust owner to pay off the loan, car belongs to finance company!

[Ziplobb]

Mercdriver said:

Two cheques, one to finance company, one to owner. Do not trust owner to pay off the loan, car belongs to finance company!

this
ideally though
You need to settle the finance and pay them the balance to protect themselves whilst having the keys in your hand ...
never trust anyone

[scorcher]

Who uses cheques nowadays?. You need to ring up the finance company on your phone with the seller present and get the figure to finalise the account. You’ll probably need to pay the seller, then the seller pays the finance company as a lot of the finance companies won’t accept payment from anyone else. Make sure you get confirmation from the finance company that they have no further interest in the vehicle and the account is clear. Make sure the finance agreement is for the vehicle you’re buying. You may need a few hours to do this if the payments don’t clear immediately.

[Mercdriver]

Even better advice!

[595Heaven]

I sold my Abarth to a trader. Got a finance closure quote and he paid them over the phone in my kitchen. All very quick and simple.

[marksx]

I've sold one with finance. The buyer paid them over the phone then transferred rest to me.

[Cloudy147]

marksx said:

I've sold one with finance. The buyer paid them over the phone then transferred rest to me.

I did exactly the same. Called the finance company with buyer present. He paid them direct, finance company then confirmed to me that finance is paid off. He transferred the rest to me and all sorted.

Don't trust the seller to pay off the finance with your money. This is absolutely the wrong thing to do, you need to pay it off, albeit with them present so there are no questions on either side.