Buying a car privately that has outstanding finance?

[shaunmeredith34488]

Hi guys,

Looking for a bit of guidance -

Going to buy a car on Saturday from a private individual for £29,000. The car has £21,000 of finance against it with Santander.

Is it as simple as me using their website, whilst there in person, to make the payment from my account on his behalf? Or should I be making the whole £29,000 BACS payment to him, for him to then clear the finance?

I've never done this before, and am feeling a bit nervous about getting something wrong!

Many thanks

[BlackStang5point0]

The last time I did this was I paid the finance co the outstanding amount to clear and then paid the balance to the seller.

[shaunmeredith34488]

BlackStang5point0 said:

The last time I did this was I paid the finance co the outstanding amount to clear and then paid the balance to the seller.

Were the finance company happy that payment had cleared all finance instantaneously?

[BlackStang5point0]

shaunmeredith34488 said:

BlackStang5point0 said:

The last time I did this was I paid the finance co the outstanding amount to clear and then paid the balance to the seller.

Were the finance company happy that payment had cleared all finance instantaneously?

Yes, made sure we got a current settlement figure and then paid it off there and then via bank transfer.

[jjr1]

Some finance companies will let you (third party) pay them directly and some won't. Best to check first with this particular one. I have paid VWFS directly for instance for a Porsche but Alphera would not take my money for a BMW.

If you trust the seller of the car you can always get them forward on the money whilst you are there.

Also in Covid times some of these finance companies are slow at sending you a settlement statement, to show they no longer have a financial interest in their car.

[ZX10R NIN]

As above check with the finance company how they'd like the settlement made, also make sure you do this in the morning as some close early on Saturdays.