Flex Posted April 21, 2016 Share Posted April 21, 2016 Obviously happens a lot but does it put buys off? Also when do you pay it off, does it matter if there's a day between them paying you and you settling the finance? Quote Link to comment Share on other sites More sharing options...
Richf Posted April 21, 2016 Share Posted April 21, 2016 I wouldnt buy a car still on finance Quote Link to comment Share on other sites More sharing options...
Flex Posted April 21, 2016 Author Share Posted April 21, 2016 I wouldnt buy a car still on finance that's helpful Quote Link to comment Share on other sites More sharing options...
Lexx Posted April 21, 2016 Share Posted April 21, 2016 Get the buyer to speak to the finance company in your presence and pay the balance of it direct from their account. Happens a lot like that and the finance companies can deal with it. Quote Link to comment Share on other sites More sharing options...
Richf Posted April 21, 2016 Share Posted April 21, 2016 Well it puts buyers off , not everyone clears the finance when they sell the car leaving the new owner with a car they dont legally own and one the finance will repossess leaving them with nothing Pay off the finance and then sell the car , or trade it in anything else would ring alarm bells for a purchaser 1 Quote Link to comment Share on other sites More sharing options...
Ekona Posted April 21, 2016 Share Posted April 21, 2016 (edited) Depends. I sold my VXR to a mate. He paid me by cheque but took the car there and then. When the cheque cleared I paid the finance. No issues, we're best mates so plenty of trust. I sold the Mini to a dealer. He paid us the cash directly, then sat there whilst we then paid the finance company over the phone. I sold the 911 to a random. He paid the finance directly by CHAPS (which, btw, only guarantees same day before 5pm NOT instant payment as we found out!), then when both he and I had proof the finance was clear did I give him the keys. The latter way is the only way to do it really. Both of you need to be happy the finance has been paid off, so as the buyer you should pay the finance company directly. Btw don't believe anyone who says that if you buy a car with finance outstanding that they can repossess it as that's nonsense: If you bought in good faith and didn't know about the finance, then you have clear title to the car. The finance co have to chase the person who the finance was with, they no longer have any rights to the car at all and if they take it then that's theft. *EDIT* That last para looks really harsh on Richf now, sorry mate I was still composing when you posted! I'm right though, they cannot simply repossess if you didn't know about the finance. If you did, then that's not clear title and they CAN take it back. Edited April 21, 2016 by Ekona Quote Link to comment Share on other sites More sharing options...
Flex Posted April 21, 2016 Author Share Posted April 21, 2016 Cheers chaps, probably pay it off first. Sorry Rich it was just the blunt statement I found funny. Quote Link to comment Share on other sites More sharing options...
370Ad Posted April 21, 2016 Share Posted April 21, 2016 We purchased the R56S privately which had finance on with BMW directly. You just pay it off on the phone when your with them doing the deal. Its obviously easier if there is no finance but its the world we live in! 1 Quote Link to comment Share on other sites More sharing options...
zebedy Posted April 21, 2016 Share Posted April 21, 2016 In ref to Ekona, doesnt the finance company own the car until you have paid 3/4 of it? and if sold before that sum, they have every right to take the car back if not settled? Quote Link to comment Share on other sites More sharing options...
Ekona Posted April 21, 2016 Share Posted April 21, 2016 They own it until you've paid 100% of it. However, they cannot just turn up and take it back if you've missed a payment once you get past a certain percentage (it's a different figure in Scotland than the rest of the UK IIRC, and I don't know the two figures off hand). However, all of that is immaterial to a purchaser who is unaware of the finance in place. The finance company CANNOT take the car back then, they will however have a lovely legal claim with the previous owner who took the finance out with them. Quote Link to comment Share on other sites More sharing options...
Juggalo Posted April 21, 2016 Share Posted April 21, 2016 (edited) They own it until you've paid 100% of it. However, they cannot just turn up and take it back if you've missed a payment once you get past a certain percentage (it's a different figure in Scotland than the rest of the UK IIRC, and I don't know the two figures off hand).However, all of that is immaterial to a purchaser who is unaware of the finance in place. The finance company CANNOT take the car back then, they will however have a lovely legal claim with the previous owner who took the finance out with them. What's to stop this scenario...Son buys a car on finance. He can't keep up payments, so sells the car to his dad/mate/uncle/etc for £1. Defaults on finance payments, waits 6 years, blah, blah... Father pretends he bought the car in good faith. Son still uses the car every day on named insurance. Edited April 21, 2016 by Juggalo Quote Link to comment Share on other sites More sharing options...
GreenLandy Posted April 22, 2016 Share Posted April 22, 2016 I imagine they'd look for some sort of proof of sale, then see it was £1 and see straight through it. Plus insurance companies wouldn't be too happy if he was driving as a named driver, but essentially being the only driver - somewhat against the insurance contract. Plus the whole thing is fraudulent Quote Link to comment Share on other sites More sharing options...
Richf Posted April 22, 2016 Share Posted April 22, 2016 The finance stays on the car though so even if you buy it in good faith you still are stuck with the whole selling a car on finance thing Quote Link to comment Share on other sites More sharing options...
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