Advice on buying a car that has finance on it
Discussion
Hi All, I'd appreciate some guidance please. I am looking to buy a car via a private sale but the car has outstanding finance on it. Seller say he will pay off the finance once I have paid him for the car. However what protects me as the buyer from him paying off the finance and then not handing over the car? How does one manage this process? Thanks in advance.
I had the same situation with my car. I purchased it privately and the guy had finance to pay off.
I sent him the money in advance so he could pay it off which was a bit risky. However he was a copper so I had more trust than the average joe.
You technically have recourse via the courts if you have a paper trail of the agreement but even if you won it doesn’t mean you see your money again.
I sent him the money in advance so he could pay it off which was a bit risky. However he was a copper so I had more trust than the average joe.
You technically have recourse via the courts if you have a paper trail of the agreement but even if you won it doesn’t mean you see your money again.
Last two cars I've bought privately have had finance on. Neither would permit payment from me. I had to pay the seller, they then used this to pay,on both occasions the phone was passed to me and they confirmed to me they no longer had an interest in the car.
On both occasions I had already done a land registry check on their address to confirm they owned the house the car was registered to (a bit tricky if they were renting).
If you're not happy then just walk away
On both occasions I had already done a land registry check on their address to confirm they owned the house the car was registered to (a bit tricky if they were renting).
If you're not happy then just walk away
As a car dealer I would only ever pay the finance company to know it has been done.
It can take 3-5 days for the finance company to confirm they have received the payment and then provide clearance. In some cases closer to 10 days depending on the lender.
There are a couple who confirm same day.
It doesn't really matter if they say they wont permit payment from a third party as so long as its paid its not like the payment will be returned.
I would never pay a member of public and expect them to pay the finance.
It can take 3-5 days for the finance company to confirm they have received the payment and then provide clearance. In some cases closer to 10 days depending on the lender.
There are a couple who confirm same day.
It doesn't really matter if they say they wont permit payment from a third party as so long as its paid its not like the payment will be returned.
I would never pay a member of public and expect them to pay the finance.
I've done this a few times selling privately and selling to a company.
The private buyer sent me the money, and then infront of him I called Blackhorse and did the payment. I then logged in to my Blackhorse to show him.
The company who was buying my car, rang the finance company themselves and settled it and then sent me the difference.
It does work on trust.
The private buyer sent me the money, and then infront of him I called Blackhorse and did the payment. I then logged in to my Blackhorse to show him.
The company who was buying my car, rang the finance company themselves and settled it and then sent me the difference.
It does work on trust.
JimmyConwayNW said:
As a car dealer I would only ever pay the finance company to know it has been done.
It can take 3-5 days for the finance company to confirm they have received the payment and then provide clearance. In some cases closer to 10 days depending on the lender.
There are a couple who confirm same day.
It doesn't really matter if they say they wont permit payment from a third party as so long as its paid its not like the payment will be returned.
I would never pay a member of public and expect them to pay the finance.
On the two occasions I've encountered it, it was the manufacturer finance. In the first example the owner called them on speakerphone, passed security and explained he was going to hand over to me to settle the finance. Finance firm said they will only tale payment from the name on the account. No one else.It can take 3-5 days for the finance company to confirm they have received the payment and then provide clearance. In some cases closer to 10 days depending on the lender.
There are a couple who confirm same day.
It doesn't really matter if they say they wont permit payment from a third party as so long as its paid its not like the payment will be returned.
I would never pay a member of public and expect them to pay the finance.
Please explain to me how I could make payment directly to them.
Presumably if you are buying an expensive car (>50k) it is worth paying a solicitor to handle this? Is that even a thing?
Is there a gap in the market for someone to provide a middleman service for a fee and offer insurance for unknown finance claims or if someone does something dodgy?
From the posts above this seems like a mess!
Is there a gap in the market for someone to provide a middleman service for a fee and offer insurance for unknown finance claims or if someone does something dodgy?
From the posts above this seems like a mess!
We have covered this a few times before - below is a link to the last thread that I participated in. It does take a degree of trust from both parties. The last time I did this was with a two year old VW Golf GTD - the first private buyer just could not get his head around the idea that he was buying a car with finance on it and pulled out. The second person, who did buy the car, was very relaxed about it and paid me the required amount in cash direct in to the bank branch. We then went back to my house and called the finance company to make the settlement.
https://www.pistonheads.com/gassing/topic.asp?h=0&...
https://www.pistonheads.com/gassing/topic.asp?h=0&...
Matt_T said:
Presumably if you are buying an expensive car (>50k) it is worth paying a solicitor to handle this? Is that even a thing?
Is there a gap in the market for someone to provide a middleman service for a fee and offer insurance for unknown finance claims or if someone does something dodgy?
From the posts above this seems like a mess!
Motorway kind of have done this with their Motorway pay set up.Is there a gap in the market for someone to provide a middleman service for a fee and offer insurance for unknown finance claims or if someone does something dodgy?
From the posts above this seems like a mess!
Often as a dealer you would go to buy a car off motorway have agreed to clear finance, discussed settlement figure and be all set.
When with the customer they would they let you make payment and then when they call to check with the finance company the payment doesn't actually show as landed or clear even if they watched you leaving you with a customer unhappy to release car and a dealer unhappy to leave having just sent a fair whack of money.
You can now pay motorway and they pay the finance company and the client which seems to have a bit more trust.
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