Buying a car with outstanding finance

Brilley

Hi all, need some advice please. Just seen a 2nd hand car I am interested in when the owner mentioned it was still on finance, and when I gave them the money then they would pay off the loan. I explained that you can't sell a car with outstanding finance and you need to contact the finance company and get a settlement figure and then clear the debt. I would be happy to pay the money off directly myself assuming I can do this with the loan company....is this an option, or is it best to leave it until the current owner has paid off the loan. In which case what "proof" would I need that this had been done?
Many thanks for any replies

lewishardwick

You could in theory pay the finance off, they'd need to call the company and check that they'd accept a payment card from a third party...

But there are plenty of other used cars out there without finance attached.

forgotmyname

What proof you HPI it and it shows clear. But that maybe days/weeks after they clear the finance.

Maybe they cannot afford to clear it before they sell it?

Maybe they will take your money and not pay the finance?

They may owe more than the cars worth.

DUTR

Brilley wrote: »

Hi all, need some advice please. Just seen a 2nd hand car I am interested in when the owner mentioned it was still on finance, and when I gave them the money then they would pay off the loan. I explained that you can't sell a car with outstanding finance and you need to contact the finance company and get a settlement figure and then clear the debt. I would be happy to pay the money off directly myself assuming I can do this with the loan company....is this an option, or is it best to leave it until the current owner has paid off the loan. In which case what "proof" would I need that this had been done?
Many thanks for any replies

It's not the only make and model of that example that you would have seen around.
I have bought a nearly 3 yr old car that was on finance, however there was just one payment remaining and the finance company was happy for the sale to go through.
You are right to check here and elsewhere, I disagree with going into a debate with the seller though.
If the car is otherwise good and the price saving offsets the extra agro then yeah get confirmation from the finance company (in writing) and you can conclude the purchase.

motorguy

Brilley wrote: »

Hi all, need some advice please. Just seen a 2nd hand car I am interested in when the owner mentioned it was still on finance, and when I gave them the money then they would pay off the loan. I explained that you can't sell a car with outstanding finance and you need to contact the finance company and get a settlement figure and then clear the debt. I would be happy to pay the money off directly myself assuming I can do this with the loan company....is this an option, or is it best to leave it until the current owner has paid off the loan. In which case what "proof" would I need that this had been done?
Many thanks for any replies

Under no circumstances - which you know already - give them the money on the belief they will clear the finance later.

The correct way to handle it in this circumstance is for you both to ring the finance company, him get a settlement figure and then you pay that to the finance company over the phone at the time. They will then email through a letter saying they have no further interest in the car (by mail takes approx a week), and thus you have the assurance the finance is cleared.

Its no particular hardship to have this intermediary step and if the car is otherwise "right" then this is a minor inconvenience.

motorguy

forgotmyname wrote: »

What proof you HPI it and it shows clear. But that maybe days/weeks after they clear the finance.

Maybe they cannot afford to clear it before they sell it?

Maybe they will take your money and not pay the finance?

They may owe more than the cars worth.

Proof would come in the form of an email from the finance company to say they have no further financial interest in the car.

motorguy

lewishardwick wrote: »

You could in theory pay the finance off, they'd need to call the company and check that they'd accept a payment card from a third party...

But there are plenty of other used cars out there without finance attached.

Its a lot harder than people think to buy the right car in the right spec and the right colour combo with the right mileage and the right history so i wouldnt necessarily walk away from a car on finance if everything else was good about the car.

System

I'd be quite happy to buy a car on finance however it would come with the following caveats:

1) I'd be paying the finance off directly with the finance company there and then on the phone.

2) I'd be giving the seller a right royal kick in the nuts with what I was prepared to pay. If they're selling a car that still has finance on it it is because they are desperate and they'll know very few people will be willing to buy a car still on finance.