Buying a car still on finance

kokolino23

Hello,
I'm looking to buy a car but there is some outstanding finance on it. The seller has the V5C on his name but there is balance left to pay on the car. He said he will clear the payment with the finance company once I'll do my payment and I'll get the buyer's bit so I can send it to DVLA.
My concern is what will happen if he doesn't pay the remaining finance on the car. How would I know if he does it ?! Even though the DVLA might send the new V5C on my name, if he doesn't clear the finance left on the car, where do I stand?
Thanks a lot

forgotmyname

The finance company own the car, its not theirs until they have paid for it.

chuffniut

Pay his finance off yourself, if there is any money owed to him (he's in positive equity) then you pay him the surplus. If he's in negative equity then he should pay the finance company the shortfall. Do this at his house, on speaker phone, to the finance company, dialled from your phone. If he's genuine then he won't mind this at all. When the respective transfers are made to the finance company, ask for a letter from the finance company to be emailed to you, a "subject to clearance" letter or "notice of discharge" which states the finance company no longer have any interest in the vehicle. Under no circumstances give the seller your money, if he "forgets" to pay off the finance, you are in a world of uncomfortable pain.

If he isn't happy with any of this, move on and forget it. Any seller with outstanding finance on the car will be happy to find a buyer and get rid of the car and finance. Anyone insisting on money from you that they will use to pay off the finance may well be dishonest.

motorguy

kokolino23 wrote: »

Hello,
I'm looking to buy a car but there is some outstanding finance on it. The seller has the V5C on his name but there is balance left to pay on the car. He said he will clear the payment with the finance company once I'll do my payment and I'll get the buyer's bit so I can send it to DVLA.
My concern is what will happen if he doesn't pay the remaining finance on the car. How would I know if he does it ?! Even though the DVLA might send the new V5C on my name, if he doesn't clear the finance left on the car, where do I stand?
Thanks a lot

As said, pay the finance company direct yourself. Under no circumstances leave him to do it subsequently.

kokolino23

Thank you very much indeed for all your answers.

I just wanted reassurance as I thought I might end up in big trouble if he doesn't pay the outstanding balance for the car. At the end of the day, the finance company can turn up and take the car away even though I might have the V5C on my name.

Scrapit

Walk away.

Mercdriver

Scrapit wrote: »

Walk away.

Another helpful post. Perhaps you have something useful to add?

Marvel1

kokolino23 wrote: »

Thank you very much indeed for all your answers.

I just wanted reassurance as I thought I might end up in big trouble if he doesn't pay the outstanding balance for the car. At the end of the day, the finance company can turn up and take the car away even though I might have the V5C on my name.

V5C just means who is responsible for taxing the vehicle, its not proof of ownership

motorguy

Scrapit wrote: »

Walk away.

No need to at all. Just pay the finance company directly. Simples.

Scrapit

Mercdriver wrote: »

Another helpful post. Perhaps you have something useful to add?

Not there's to sell. Plenty of other fish etc. Etc. Many many reasons not to young'un. Hth

Mercdriver

Scrapit wrote: »

Not there's to sell. Plenty of other fish etc. Etc. Many many reasons not to young'un. Hth

It might not be theirs to sell, but Motorguy has suggested the correct procedure.