Query on selling a car to trade

[DSLiverpool]

Selling to a small trader
Car has an element of finance outstanding

Once I sell the car to a trader does the debt on finance move to the trader ? I doubt this but Im not sure

When selling on finance previously I had the buyer call the finance company and pay with a debit card in my presense and that was it.

So if the small trader collects the car and says he will pay the finance off should alarm bells be ringing ? (Im nowhere near doing that just in case you think Im mad) - he would pay the balance to me in cash.

As Im typing this I think NOOOOOOO its not right - but I dont know, so esteemed forum whats the score please

Note its not Strats or inchcape its a small trader

 

[verytalldave]

Might help.............

Selling a car on finance

 

[Deleted member 37751]

I can't see why he wouldn't just give you the full amount and then you pay the outstanding finance off?

 

[bolide]

When selling on finance previously I had the buyer call the finance company and pay with a debit card in my presense and that was it

This sounds like the best way to do it. Why leave any doubt?

I have bought a car in this way in the past and spoke direct to the finance company after he did the credit card transaction

I would call the company in advance and let them know the plan. From my experience it isn't an unusual scenario and the people at the finance company were very helpful

Nick Froome

 

[davidjpowell]

I'd be wary.

Once p/ex a Passat for my first Merc to a trader which had an element of finance on it. He gave quite a high figure and passed it on to a mate to trade, who did not pay off the finance.

Lawyers got involved and I think I was thoroughly diddled, but the car ended up back with me, and had been well used while for sale. Stank of cigarettes, no water, needed oil etc.

Unless you know them well, you do really want to see them paying it off immediately.

 

[mercnewby]

Hi

I used to work in car finance some time ago but things
have not changed all that much.

I think you should settle the finance.

Then gain the full price for the car. You can ask the finance
co to give you a letter of clearance and they will take it off
the HPI register.

There is no guarantee that the trader will clear the finance.
Allowing him to pay you the agreed amount less the finance
is risky and messy.

You could ask him for the settlement in cash and then both
oversee the payment to the finance co, or indeed speak to the
co with the trader together and as someone else said, pay it off
by card direct over the phone..

The debt is yours and if it is unpaid they will ask you for clearance
first.

In the old days traders had no comeback in law but I think I would
clear it myself.

Only my opinion though.

Ian

 

[DSLiverpool]

Right I decided to pay off the finance, by debit card "sorry sir we cant take that much by card" by transfer "Halifax limit is £15k" by cheque "may take a week"

So may bite the bullet lost £1900 and trade it in which is a pity

The guy who wants to pay off the finance etc is a small time trader and Im sure he is genuine BUT its a risk not worth taking

 

[npuk]

Dont see the issue if he pays off the finance in front of you when he collects the car. You ring the finance company, he pays using his card and they will confirm to you on the phone the finance is clear.

 

[DSLiverpool]

I agree but he cant come up during the week, even if he does it will be three debit card payments over the phone and his card will probably get locked.

MB finance dont have the £10k rume just seems to be Jag finance unless its a new rule

 

[jaymanek]

Would not trust anyone else to pay the finance unless the trader has proper premises which you can go back to.

 

[bolide]

So may bite the bullet lost £1900 and trade it in which is a pity

You are willing to lose £1900 because your bank won't allow you transfer more than £15k?

I'd be on the phone to the branch manager asking to close my account. This is what bank transfers are for. Or is the account the wrong type for what you want to do?

Either way it sounds like a lot to lose because you don't have the right bank account

Nick Froome

 

[ghouluk]

You are willing to lose £1900 because your bank won't allow you transfer more than £15k?

I'd be on the phone to the branch manager asking to close my account. This is what bank transfers are for. Or is the account the wrong type for what you want to do?

Either way it sounds like a lot to lose because you don't have the right bank account

Nick Froome

i agree - this seems odd, which bank are you with - its your money, so if you have it, they transfer it!

(then again, a finance company that can't take a card payment that big seems poor as well - but your an ongoing customer of the bank)

 

[DSLiverpool]

Sorry guys to clarify
Jag finance can take £10k max on a card over the phone
Halifax net transfer is limited to £15k
I have sent them a cheque today - back to the dark ages hey

On the flipside buying a Range Rover is a thankless task made harder by sloppy websites, poor labelling of options and confusing range

I want / have to have the premium hifi however the normal stereo is called premium or Hi Ice - both poor, I need Logic 7 HK and there are THREE cars with it in the Uk, found by trawling through every bloody model on the LR site.

Dealers mention premium audio in the options list but its the standard stereo - also things like electric seats are features - but its standard and uses up space on the advert

Adverts should be usual spec plus these options ..... would make life easier - rant over

 

[jepho]

MB finance dont have the £10k rume just seems to be Jag finance unless its a new rule

It is in case you are Bin Laden's right hand man and you are intending to fly the car into Battersea Dogs Home or some other famous British landmark.

How the heck anyone can prove they are not a terrorist is beyond me... do you have to blow something up and then show you are remorseful?

 

[hawk20]

With most finance deals like HP, leases, contract hire, PCP's etc, you do not own the car and have no right to sell it without the Finance companies approval. And to get that you need to pay the finance off first. Unless you are part exing with a reputable dealer and then the finance company will often take the dealers word that he will pay it off and pay you the balance.

Never sell the car to someone who says they will pay off the finance unless it is to a reputable dealer who does both bits almost simultaneously and gives you proof that the finance has been paid off.

BTW if stuck by a limit on payments by card, it is easy to hev money transferred by bacs or by electronic transfer (may involve a modest fee) or the bank can give you a bankers draft.

 

[starquake]

indeed, you can even do "same day", almost instant transfers from your bank if you go in. No limits at either end, you just need their bank account no and sort code. CHAPS payments is the term I believe. The far side just needs to be able to check their payments inbound in real time, and most finance houses are setup for this.

Banks hate doing them though, lots of paperwork, but the thing is most premium style bank accounts don't charge for them (and I don't mean those pay 15 quid a month for accounts either)... due to this lack of charge the bank will try and weedle out of it in any way as it takes them 30-40 mins of paperwork to handle based on my last transfer.

(I had it whilst buying a house, and needing a 20k fee sent same day to solictors to finish up the house finance...)