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  • FIRST POST
    • kokolino23
    • By kokolino23 6th Jan 19, 10:28 PM
    • 106Posts
    • 17Thanks
    kokolino23
    Buying a car still on finance
    • #1
    • 6th Jan 19, 10:28 PM
    Buying a car still on finance 6th Jan 19 at 10:28 PM
    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
Page 1
    • forgotmyname
    • By forgotmyname 6th Jan 19, 11:03 PM
    • 28,740 Posts
    • 11,751 Thanks
    forgotmyname
    • #2
    • 6th Jan 19, 11:03 PM
    • #2
    • 6th Jan 19, 11:03 PM
    The finance company own the car, its not theirs until they have paid for it.
    Punctuation, Spelling and Grammar will be used sparingly. Due to rising costs of inflation.

    My contribution to MSE. Other contributions will only be used if they cost me nothing.

    Due to me being a tight git.
    • chuffniut
    • By chuffniut 6th Jan 19, 11:10 PM
    • 21 Posts
    • 8 Thanks
    chuffniut
    • #3
    • 6th Jan 19, 11:10 PM
    • #3
    • 6th Jan 19, 11:10 PM
    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
    • By motorguy 7th Jan 19, 9:35 AM
    • 18,491 Posts
    • 11,389 Thanks
    motorguy
    • #4
    • 7th Jan 19, 9:35 AM
    • #4
    • 7th Jan 19, 9:35 AM
    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
    Originally posted by kokolino23
    As said, pay the finance company direct yourself. Under no circumstances leave him to do it subsequently.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • kokolino23
    • By kokolino23 7th Jan 19, 10:12 AM
    • 106 Posts
    • 17 Thanks
    kokolino23
    • #5
    • 7th Jan 19, 10:12 AM
    • #5
    • 7th Jan 19, 10:12 AM
    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
    • By Scrapit 12th Jan 19, 12:55 AM
    • 406 Posts
    • 117 Thanks
    Scrapit
    • #6
    • 12th Jan 19, 12:55 AM
    • #6
    • 12th Jan 19, 12:55 AM
    Walk away.
    • Mercdriver
    • By Mercdriver 12th Jan 19, 5:55 AM
    • 2,394 Posts
    • 1,643 Thanks
    Mercdriver
    • #7
    • 12th Jan 19, 5:55 AM
    • #7
    • 12th Jan 19, 5:55 AM
    Walk away.
    Originally posted by Scrapit
    Another helpful post. Perhaps you have something useful to add?
    • Marvel1
    • By Marvel1 12th Jan 19, 8:18 AM
    • 3,972 Posts
    • 4,391 Thanks
    Marvel1
    • #8
    • 12th Jan 19, 8:18 AM
    • #8
    • 12th Jan 19, 8:18 AM
    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.
    Originally posted by kokolino23
    V5C just means who is responsible for taxing the vehicle, its not proof of ownership
    • motorguy
    • By motorguy 12th Jan 19, 9:49 AM
    • 18,491 Posts
    • 11,389 Thanks
    motorguy
    • #9
    • 12th Jan 19, 9:49 AM
    • #9
    • 12th Jan 19, 9:49 AM
    Walk away.
    Originally posted by Scrapit
    No need to at all. Just pay the finance company directly. Simples.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • Scrapit
    • By Scrapit 13th Jan 19, 10:34 PM
    • 406 Posts
    • 117 Thanks
    Scrapit
    Another helpful post. Perhaps you have something useful to add?
    Originally posted by Mercdriver
    Not there's to sell. Plenty of other fish etc. Etc. Many many reasons not to young'un. Hth
    • Mercdriver
    • By Mercdriver 14th Jan 19, 1:28 AM
    • 2,394 Posts
    • 1,643 Thanks
    Mercdriver
    Not there's to sell. Plenty of other fish etc. Etc. Many many reasons not to young'un. Hth
    Originally posted by Scrapit
    It might not be theirs to sell, but Motorguy has suggested the correct procedure.
    • Scrapit
    • By Scrapit 19th Jan 19, 10:52 AM
    • 406 Posts
    • 117 Thanks
    Scrapit
    It might not be theirs to sell, but Motorguy has suggested the correct procedure.
    Originally posted by Mercdriver
    It's not a procedure. It's a course of action but still not there's to sell so no guarantee that the finance company will go with it. With that in mind my original advice still stands. Find another.
    • motorguy
    • By motorguy 19th Jan 19, 2:04 PM
    • 18,491 Posts
    • 11,389 Thanks
    motorguy
    It's not a procedure. It's a course of action but still not there's to sell so no guarantee that the finance company will go with it. With that in mind my original advice still stands. Find another.
    Originally posted by Scrapit
    Its "theirs".

    Yes the finance company will. Happens all the time. Easily done.

    If its the right car at the right price, then this is a simple step to sort out.
    Last edited by motorguy; 19-01-2019 at 2:20 PM.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • Mercdriver
    • By Mercdriver 19th Jan 19, 4:12 PM
    • 2,394 Posts
    • 1,643 Thanks
    Mercdriver
    It's not a procedure. It's a course of action but still not there's to sell so no guarantee that the finance company will go with it. With that in mind my original advice still stands. Find another.
    Originally posted by Scrapit
    https://en.oxforddictionaries.com/definition/procedure

    cf 1.1

    And it is still not theirs to sell, but as far as the finance house is concerned, once they have the cleared funds in settlement of the agreement, they really couldn't give a monkey's toss.
    • Scrapit
    • By Scrapit 19th Jan 19, 11:12 PM
    • 406 Posts
    • 117 Thanks
    Scrapit
    So your saying it is there's to sell?
    Hmm.
    • Mercdriver
    • By Mercdriver 20th Jan 19, 12:58 AM
    • 2,394 Posts
    • 1,643 Thanks
    Mercdriver
    So your saying it is there's to sell?
    Hmm.
    Originally posted by Scrapit
    I'm not even saying it is theirs to sell. However, finance companies accept payment from anyone to remove their interest in the vehicle, so ownership isn't relevant when the payment is made.
    • debtdebt
    • By debtdebt 20th Jan 19, 1:59 AM
    • 786 Posts
    • 522 Thanks
    debtdebt
    Not there's to sell. Plenty of other fish etc. Etc. Many many reasons not to young'un. Hth
    Originally posted by Scrapit
    So based on your advice people who have cars on finance or with secured loans on them can't sell said car until the full term of the loan has been paid off and concluded? Absolute rubbish. What do you think happens when people decide to change their cars mid term and go to a dealer? The dealer takes the car in part ex and rolls the finance onto the new deal.

    As others have said, OP if you like the car, make sure you pay off the finance yourself and get written confirmation that it's settled.
    • Scrapit
    • By Scrapit 20th Jan 19, 10:07 PM
    • 406 Posts
    • 117 Thanks
    Scrapit
    So based on your advice people who have cars on finance or with secured loans on them can't sell said car until the full term of the loan has been paid off and concluded? Absolute rubbish. What do you think happens when people decide to change their cars mid term and go to a dealer? The dealer takes the car in part ex and rolls the finance onto the new deal.

    As others have said, OP if you like the car, make sure you pay off the finance yourself and get written confirmation that it's settled.
    Originally posted by debtdebt
    Where did I say can't? The point being if one car has outstanding finance then there's a extremely good chance there will be an equal if not identical vehicle without for sale. Path of least resistance.
    • motorguy
    • By motorguy 21st Jan 19, 9:53 AM
    • 18,491 Posts
    • 11,389 Thanks
    motorguy
    Where did I say can't? The point being if one car has outstanding finance then there's a extremely good chance there will be an equal if not identical vehicle without for sale. Path of least resistance.
    Originally posted by Scrapit
    There may well be, but if the car is otherwise the car you want, why walk away and try and find that other car where ever it happens to be and maybe have to endure looking at 10 duff ones until you find it?

    Whats the difference between moving money over to the finance company and moving money over to a seller?

    The path of least resistance would actually be phone the finance company and pay them rather than go on a wild goose chase looking for another equal / identical vehicle.
    "We have normality. I repeat, we have normality. Anything you still can't cope with is therefore your own problem."
    • shaun from Africa
    • By shaun from Africa 21st Jan 19, 10:15 AM
    • 10,716 Posts
    • 12,141 Thanks
    shaun from Africa
    The path of least resistance would actually be phone the finance company and pay them rather than go on a wild goose chase looking for another equal / identical vehicle.
    Originally posted by motorguy
    And then if you do find another suitable vehicle, a sensible buyer would pay for an HPI check to make sure that the vehicle wasn't still on finance, something that wouldn't have to be done in the OP's case.
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