Private sale - buying a car with outstanding finance

Martin_Knott-Lewis

Please alert me if you think I am about to be scammed.

I have been to view a car with outstanding finance. I'd like to buy the car as I like it and the price is very good. The seller said that Webuyanycar quote was less so he is doing ok and he wants to sell it quickly to reduce his company's costs after parting company with his business partner.

What precautions should I take?

I viewed at the seller's home address and saw the paperwork relating to the car and to the finance. The car is in his company's name at the same address.

The purchase price I will pay will not cover the outstanding finance so the seller has to pay the rest to the finance company. The seller has suggested I do a bankers draft to the finance company for the purchase price and he will do the same for the rest being about £900.

He said we could go to the bank together and once he and I have handed the bankers drafts over, it is not reversible.

He said he would give me a copy of the finance settlement letter once he has it.

What do I need to check in terms of the car, the finance and the selling company? Anything else?

I did not drive the car myself but the seller drove me around. He said it was fine and it is still under warranty.

Weird_Nev

Well, he's been open and honest about the finance, anyway. Are the finance company aware that he's selling the car?
I believe that the way to do it is for the seller to pay the outstanding finance off over the phone, with you present, and they then confirm to you that this has been done.
If you're paying the money direct to the finance company, providing they're legit I can't see there's much to go wrong providing he pays his share. THe principal scam comes from you paying him on a promise he then pays the finance, but then of course doesn't.

I'd make a call direct to the finance company and see how they suggest proceeding - and if they're happy with the car being sold at all in the first place (they may not be if he's missed payments or wahtever).

slyracoon

Don't do it.

How do you know the finance paperwork he showed you is correct? He might have missed several payments since then which means the outstanding finance could be a lot higher.

Tell him to settle it with the finance company himself and that you'll come back once the finance is clear and shows as clear on a HPI check.

gilbert_and_sullivan

I didn't progress with a purchase because of similar circumstances.

The car priced very well to tempt the optimistic i assume, is this car a similar bargain too good to miss?
The bloke selling was slightly too 'market trader' glib with his patter for my liking and overegged the pudding.

It remained for sale for several more weeks before the ad vanished.

Be on guard.

rdwarr

I nearly did the same. I was looking at a car in AutoTrader for £15k. It was just what I wanted so I agreed terms with the vendor and arranged a date to do the transaction and collect the car.
As it was a lot of money I thought an HPI check would be worth it and it came back with details of outstanding finance. I rang the lender who said they were awaiting the balloon payment on a three-year lease purchase agreement.
I Emailed the vendor to check that he was going to pay it off and heard nothing back. I tried again, nothing, tried phoning him, no reply.
It's possible that he needed to sell the car to pay off the finance but what if he didn't??
Fortunately I then found a similar car for £14k from a dealer.

Walk away and find another one. There are plenty of cars for sale.

rodenal

I sold a car with outstanding finance on it a few years ago. The way I done it was to show the buyer my settlement figure from the finance company, get him to leave a deposit then confirmed with the finance company there were no nasties if I was to pay today.

When the buyer came to collect, we went to the bank and paid in the sum for the car - I then called the finance company with him present and paid the balance. Got them to quickly confirm to the buyer that the full and final sum was paid and asked them to email me confirmation.

This was all done including receiving confirmation email which I showed and forwarded to him within a total time of about 2-3 hours. Meant the buyer hanging around a bit but also meant he was comfortable that there was nothing untoward going on r.e finance.

The other option I was considering, if he wasn't able to wait whilst I paid finance etc was for him to leave a reasonable deposit (in the region of £500) after which I would have paid off finance via credit card so written proof was available within a couple of days for him to collect with the car.

wba31

Martin_Knott-Lewis wrote: »

I have been to view a car with outstanding finance. I'd like to buy the car as I like it and the price is very good. The seller said that Webuyanycar quote was less so he is doing ok

The webuyanycar quote isn't worth the paper it's written on. They offered me £2300 for a car i sold for £5000 last year, and offer £1000 on my car now which is worth £3000. they go in very low so they can sell for profit

fivetide

I wouldn't be leaving £500 on the hope you'd pay off the finance I'm afraid. I'd want you to pay it off then do the deal with a car you own. Sorry.

5t.

rodenal

Which is fair enough and understandable. Was just the only way I could think to guarantee the buyer wouldn't pay say £50 deposit then never return with me having just paid £4.5k off on a credit card. Not that it mattered anyway as he was happy enough to wait.

Martin_Knott-Lewis

Thanks for all your replies.

I phoned the finance company, not from the number on the paperwork but the number I found on the internet. The outstanding finance is genuine. V. hard to get any info from them. May be easier to leave it.