Buying a car with outstanding finance

Shooter1

Hi all,

Found a car that I like, but the private seller still has outstanding finance on the car. The seller can not afford to clear the balance before I pay for the car.

What I was thinking of doing, from the sellers house:
1. Seller to phone the finance company to confirm balance.
2. I’ll phone the finance company and pay the agreed amount (via debit card)
3. Seller will phone finance company and pay small remaining balance.
4. Ask finance company to confirm nil balance.
5. I’ll drive away with the car.

This is further complicated by the fact that it’s a 4 hr drive and we want to do it on a Sunday.

Does all of the above sound a reasonable solution?

Thanks in advance.

ChrisNic

Your plan sounds ok to me.

Whether you can do it on a Sunday is another matter & expect for your bank to question the transaction which can take a bit of time to resolve, assuming you are using your debit card.

Don’t trust the seller to clear the finance, you could end up with no cash & no car in a worst case scenario.

nheather

How about

1. Seller to phone the finance company to confirm balance.
2. I’ll phone the finance company and pay the agreed amount (via debit card)
3. Seller says “Thanks, changed my mind, the car is no longer for sale”

A bit tongue in cheek I guess, but I would want something formal in place before I paid off someone else’s loan.

Cheers,

Nigel

IronGiant

If it's a Private Sale, how do you ever prove you bought it?
Best you can do: Get a hand written receipt and proof you paid the seller.

So I would suggest you get a receipt from the seller, bank transfer the money to them,  and then sit down with them while they pay off the finance company.  If anything looks fishy at any point, walk away.

Greg Hook

Won't the finance company switch the balance to you? You can then take the car, the seller can pay you the small balance and you can pay off the finance company.

pinnocchio

Sorry, can I ask the following:-

Roughly how much is the finance outstanding on the car?  (Make sure you get copies of the original finance agreement and check to see if there's a discount for early payment, but don't tell the seller).

Roughly how much are you paying for it in total?

Is the seller the original owner from new?

Have you checked to make sure the Insurance, MOT and Tax are all up to date?

Hixs

Other cars out there. Literally many many thousands of other cars. This one isn't special nor unique in any way.

Move on.

John7

The car belongs to the finance company and the seller is therefore acting unlawfully by selling it.

Smiffy 2

Not if he has notified the finance company of his intentions and settles the outstanding finance.

Smiffy 2

Not going to happen for various reasons.
Sorry.