Buying a Car with Outstanding Finance

Discussion in 'General Discussion' started by KillerHERTZ, Mar 24, 2014.

  1. KillerHERTZ

    KillerHERTZ Administrator Staff Member

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    Found a car im interested in, the seller told me from the start of the call that £8k was outstanding on it, once I bought the car he would ring them up & tell them it has a new owner etc.

    What is the panels experience/thoughts on this - should I avoid like the plaque or nothing to worry about?

    Thanks!
     
  2. DSM10000

    DSM10000 Hardcore MB Enthusiast

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    If there is outstanding finance then surely the person selling it does not have legal title to the car and if he did not pay off the debt the finance company could and most probably will try to take it back from you? The registered keeper is not same as the legal owner.

    If you want the car then talk to the finance company and ask them if you can pay the outstanding amount to them and confirm to you in writing that this will settle the outstanding liability and allow full legal transfer to you but it does all sound rather too complicated.
     
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  3. m2287

    m2287 Hardcore MB Enthusiast

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    I've done this before. Pay the finance off yourself and any remaining balance to the seller. Easy!
     
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  4. seven

    seven Hardcore MB Enthusiast

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    Depending on who the finance is with you can sometimes do this at a main dealer for everyone's peace of mind.
     
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  5. MCFastybloke

    MCFastybloke Hardcore MB Enthusiast

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    I have done this in the past,got a draft for the outstanding finance and placed it in an envelope and we went and posted it together,gave the vender the balance.this was 2002 so I guess a bank transfer would do it now.
     
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  6. SLK32AMG

    SLK32AMG Hardcore MB Enthusiast

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    Under no circumstances buy the car and pay all money to seller as you will not be owner of the car and if he defaults on the payment they will take car off you and you will not have a leg to stand on, trust me my friend did this and 3 months later he was 17k out of pocket as finance company repossed car with the aid of 4 not very nice men who took car off him with aid of a repossesion order and 60 stone of muscle. Be warned do as the above posts.
     
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  7. OP
    OP
    KillerHERTZ

    KillerHERTZ Administrator Staff Member

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    Excellent advice guys!
     
  8. Germanmad

    Germanmad New Member

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    As a motor trader I agree that you should agree a deal and most finance companies will accept a debit card payment , or you can get the bank details and go with the customer to the bank and transfer the money to the finance co . I would however hpi the car to check there is no accident damage and get the name of finance co and the customer should have a letter with the amount owing .
     
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  9. paneraiseeker

    paneraiseeker Hardcore MB Enthusiast

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    I have done this twice, once i paid the seller but prior to the payment i spoke to the finance company and they said they had not further interest in the car so no problem. The second time i paid the finance company the outstanding amount.

    Just make sure you're able to speak to the finance company is my advice.
     
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  10. gIzzE

    gIzzE MB Club Veteran

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    I prefer to buy a car with finance on it, you know Lombard, Blackhorse etc. are not going to be part of any scams, and most won't finance a car that has been a cat d or whatever either.

    You simply pay the finance company in full, then settle the balance with the seller.
     
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  11. Dieselman

    Dieselman Banned

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    Do Hpi check, get finance company details as a result, have seller inform finance company to deal with you, pay finance on debit card, they will fax title to both partes, pay balance to seller, drive away.
     
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