Buying a car still on finance

Options
kokolino23
kokolino23 Posts: 267 Forumite
First Post Name Dropper First Anniversary Combo Breaker
in Motoring
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
«13

Comments

  • forgotmyname
    forgotmyname Posts: 32,552 Forumite
    First Anniversary Name Dropper First Post
    Options
    The finance company own the car, its not theirs until they have paid for it.
    Censorship Reigns Supreme in Troll City...

  • chuffniut
    chuffniut Posts: 30 Forumite
    Options
    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
    motorguy Posts: 22,473 Forumite
    Name Dropper First Anniversary First Post
    Options
    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
    kokolino23 Posts: 267 Forumite
    First Post Name Dropper First Anniversary Combo Breaker
    Options
    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
    Scrapit Posts: 2,304 Forumite
    First Anniversary Name Dropper Combo Breaker First Post
    Options
    Walk away.
  • Mercdriver
    Mercdriver Posts: 3,898 Forumite
    First Anniversary Name Dropper First Post
    Options
    Scrapit wrote: »
    Walk away.

    Another helpful post. Perhaps you have something useful to add?
  • Marvel1
    Marvel1 Posts: 7,172 Forumite
    Name Dropper First Post First Anniversary
    Options
    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
    motorguy Posts: 22,473 Forumite
    Name Dropper First Anniversary First Post
    Options
    Scrapit wrote: »
    Walk away.

    No need to at all. Just pay the finance company directly. Simples.
  • Scrapit
    Scrapit Posts: 2,304 Forumite
    First Anniversary Name Dropper Combo Breaker First Post
    Options
    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
    Mercdriver Posts: 3,898 Forumite
    First Anniversary Name Dropper First Post
    Options
    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.
This discussion has been closed.
★ ★ ★ Meet your Ambassadors

Categories

  • All Categories
  • 343.2K Banking & Borrowing
  • 250.1K Reduce Debt & Boost Income
  • 449.7K Spending & Discounts
  • 235.3K Work, Benefits & Business
  • 608K Mortgages, Homes & Bills
  • 173.1K Life & Family
  • 247.9K Travel & Transport
  • 1.5M Hobbies & Leisure
  • 15.9K Discuss & Feedback
  • 15.1K Coronavirus Support Boards