Buying a car with outstanding finance

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Phil-E30

Active member
Agreed a deal for a car this evening, proceeded to do my RAC HPI check before booking my flights and boat to collect it. Turns up that there is still outstanding finance on the car.

Now, I realise that this is a very precarious situation. Is there any safe way to manage a deal for a car in this position or should I run a mile?
 
you pay off the finance and give the seller the difference. Whilst in front of you on the phone?
 
It is a bit complex.

Ask the seller to speak with the finance company and give them your name so they will speak to you.

They will then tell you the balance which you can pay direct to the finance company. They will then confirm they have received payment and have no further interest in the car.

Only once this is agreed as the way forward and everything is sorted should you proceed.
 
Not being funny but why hadn't the seller divulged that there is outstanding finance? I assume the finance company aren't looking for it?

Personally I would have to wonder what else the seller is withholding information wise and wouldn't proceed, however speak with the seller and see what they have to say as they may not wish to proceed knowing they aren't going to get the full asking price as there is finance to pay. Also who is to say the outstanding amount will be cleared by what you are going to pay?
 
Angie4m said:
Not being funny but why hadn't the seller divulged that there is outstanding finance? I assume the finance company aren't looking for it?

Personally I would have to wonder what else the seller is withholding information wise and wouldn't proceed, however speak with the seller and see what they have to say as they may not wish to proceed knowing they aren't going to get the full asking price as there is finance to pay. Also who is to say the outstanding amount will be cleared by what you are going to pay?
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Having thought about it a little more, totally agree with what Angie is saying. Did the seller not tell you there was outstanding finance which needed to be cleared?
 
I wouldn't be too concerned that he didn't disclose (although worth looking into), although he should have, some people think it's fine to just sell it and pay off the finance themselves, not knowing that if they didn't it's 'no longer there problem'.

Usually you just get the financier's information, deal with them directly and make a payment, then also make a payment to the seller for the balance. Care needs to be taken, as a dodgy seller could well take advantage of the fact that you're paying off their debt before you have any tangible goods in your possession.

So as reccomended, make the payment over the phone with the seller present, to a number that you've already verified is the correct number for the financier (do not let the person dial a number that you have not verified as correct as it wouldn't be impossible for it to be a dummy).

Not a big deal and wouldn't let it put you off, I bought my ducati by paying the seller's finance off before I even laid eyes on the bike; but it was via a club so you can gauge how trustworthy they are by their posts etc..
 
ermmmm op are you mad??? f**k buying that, if that guy can't disclose finance what else is being hidden ?? sorry id walk well away, if you know from the start and have planned for it awesome, BUT, to have something that major spring up is very worrying, so what if you hadn't had checked>??? hmmmm no way .. walk out of principle. :thumbsdown: :thumbsdown: :thumbsdown:
 
hopz121 said:
you pay off the finance and give the seller the difference. Whilst in front of you on the phone?
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+1 agree this is the way to go if it's the car you want.

I work for a car finance company. You speak to the finance company whilst with the seller (as you will need their authority) and pay the finance company direct (there's usually a contact number on the hpi check). It's not something to be feared as long as you are sensible. The finance company should be happy to email you a clearance letter as soon as the payment is made. Lots of genuine people have cars on finance with equity in them, just don't rely on them settling the finance with your money, pay the finance youself and note all the details. The finance company will remove their interest in about 24 hours usually.
 
I would think not disclosing finance from the offset is fair enough it you were of the view that it's a simple arrangement. Sell car, pay finance. So why disclose?

Having said that, arrangements have been made with the finance company for me to pay them directly and then pay the seller the outstanding balance.

I had a thought though, can there be more than one finance agreement on one car?
 
Walk well away of this
When I look for cars I always hpi check and there are loads out there that are cats without any info on the adverts
 
The car has not Cat history or issues along those lines, I wouldn't go near it if that hadn't been stated.

I only still consider this because selling a car and paying off the finance is a perfectly normal situation. It's simply a case of negotiating it properly.

However, if more than one finance arrangement can be out on the car then I'll have to walk away.
 
Perfectly normal way of doing business or not ........ correct me if I am wrong but ............

If there is outstanding finance on a vehicle, does the vehicle not still belong to the finance company ???
ie ....... the bloke is selling a car he does not technicaly own ....... :cry:
 
teamemmenracing said:
Perfectly normal way of doing business or not ........ correct me if I am wrong but ............

If there is outstanding finance on a vehicle, does the vehicle not still belong to the finance company ???
ie ....... the bloke is selling a car he does not technicaly own ....... :cry:
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It's generally fine to sell as long as you settle the finance in full immediately.
 
Phil-E30, yes it can have more than one loan against it. People can also have log book loans on it.

GP06Roadster said:
teamemmenracing said:
Perfectly normal way of doing business or not ........ correct me if I am wrong but ............

If there is outstanding finance on a vehicle, does the vehicle not still belong to the finance company ???
ie ....... the bloke is selling a car he does not technicaly own ....... :cry:
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It's generally fine to sell as long as you settle the finance in full immediately.
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True but some agreements state you will give the finance company the option to buy it back first. BMW finance is a prime example of this. Highly unlikely they would invoke that clause but they do put it in the contract.
 
Well, all arrangements are in place. I spoke to the finance company and have everything in place to pay them when I am picking the car up from the seller.

All being well I will pick my Z4 M Coupe up this weekend :thumbsup:
 
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