Car with Outstanding Finance

romsyam

Hi,

I've just been to view a car and it is what i've been looking for. I did a HPi check and it came back with outstanding finance.

I discussed this with the seller and he said he will finalise the agreement with the finance house.

Is there some way of me taking a written agreement for him to sign to say I have no liability for the finance. Would this stand up legally?

I did ask the seller would he sign an agreement and he is happy to do so. In fairness to him he was very open and seemed a genuine guy.

thanks

emmell

I once bought a car with finance outstanding, I can't remember if he gave me the Finance co number to ring them or he rang them while I was there as I remember them saying to me that he had asked for a settlement figure.
Could you ask him if you can pay the settlement figure direct to the Finance co., then at least you'll know it has been paid.
ML.

romsyam

Yes i think I'll try that. I'm not convinced that the settlement figure will be less than what I'm paying though.

Doesn't seem fair that you can't have some sort of legal agreement that the seller signs would be much easier.

What would happen if say I agree to buy the car for £15,000 and the finance is £20,000. When I take ownership of the V5 and the name is changed am I right in thinking the finance company will just come and persue me straight away?

Kilty_2

Isn't it the case that if you're sold the car in good faith the finance company can't take it from you because their agreement isn't with you?

Sure I read that somewhere

romsyam

Kilty that's what I was hoping as it seems the most fair but from what I read I'm not sure. I thought maybe I could turn up with a piece of paper for the seller to sign saying something along the lines of

'I Mr X have agreed a sale with Mr Me. I mr X accept any liability on owed money to the finance house'

Does anyone think this would work?

bigbulldog

I could be wrong,but if you buy the car and there is still finance outstanding and the seller does not settle off the debt owed on it they are within there rights to repo the car back for money owed .

motorguy

bigbulldog wrote: »

I could be wrong,but if you buy the car and there is still finance outstanding and the seller does not settle off the debt owed on it they are within there rights to repo the car back for money owed .

Yes, thats correct. the only caveat being that if the purchaser didnt know theres finance outstanding, then they cant. Which he does here.

motorguy

O/P - you MUST pay the finance company directly. If the amount owed is greater than the purchase price, then the seller MUST pay that amount with you to the finance company at that time. You then NEED to get confirmation from the finance company that they have no financial interest in the car. that may take the form of a receipt at the time.

A letter of intent from the seller to clear the finance is not enough.

emmell

I wouldn't touch this car with a bargepole, the car is not his to sell, it belongs to the finance company. And why would someone sell a car for £15,000 when they owe £20,000.
There is no benefit whatsoever in him selling the car for less than what is owed, it is a scam.
There are plenty of legitimate cars for sale without having all these problems.
ML.