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HP finance still on car, looking to buy


John tarantula

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pretty sure I've got this straight but a Zed I was going to look at has come back on the HPI check as having outstanding finance (Hire Purchase, 36 months, started June 11)

 

This means it's still owned by the finance company until it's paid off so even if i 'buy it' it won't be mine?

 

If so won't don't these people tell me when i phone them about the car! :rant:

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It needs further investigation to be fair

The current owners may have sent off the settlement cheque but the letter of satisfaction may not have been sent back or the finance company may not have written to Experian to remove it from the HPI register.

Therefore what you need is a letter of satisfaction from the finance company (not the customer). The current owners should be cool with this if not there may be a rabbit off!

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Just spoke to him and he said he'd pay off the finance the next day as they would be shut when i went to look.. erm as honest as he might sound I said no. I'll try and go during the hours the finance people are open and pay them direct if the cars any good so i know it's done and then give him any extra. if it sells in the meantime then fair enough! Only thing is now I can't say i trust the guy as he didn't bother telling me this in the first place! hhhmmm

 

thanks for your help again Toby! could have saved me thousands!!!! :thumbs:

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No problem, I know you are having a bit of a nightmare with this!

 

The only other alternative is to establish the settlement figure (exactly and independently!), and only pay the difference.

i.e. if the car is £6000 and they owe £3000 on it, just pay them £3000 cash for the car! then the burden is on them!

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No problem, I know you are having a bit of a nightmare with this!

 

The only other alternative is to establish the settlement figure (exactly and independently!), and only pay the difference.

i.e. if the car is £6000 and they owe £3000 on it, just pay them £3000 cash for the car! then the burden is on them!

 

But that wouldn't remove the finance charge from the car.......he needs to do what he has already proposed, pay the balance of the finance direct to the finance company and the rest to the seller. :)

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I had the same thing when I went to purchase mine.

 

The previous owner was upfront with the outstanding finance and I spoke with the company to validate the amount outstanding.

 

I had the option to pay the finance company direct with a cheque to clear the balance and the remainder to the owner.

 

In the end I transferred funds to the owner and was present when he cleared the balance with the company. He then sent me a copy of the letter of confirmation stating the outstanding balance was clear and paid in full.

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No problem, I know you are having a bit of a nightmare with this!

 

The only other alternative is to establish the settlement figure (exactly and independently!), and only pay the difference.

i.e. if the car is £6000 and they owe £3000 on it, just pay them £3000 cash for the car! then the burden is on them!

 

But that wouldn't remove the finance charge from the car.......he needs to do what he has already proposed, pay the balance of the finance direct to the finance company and the rest to the seller. :)

 

That kind of what I ment, if they establish the amount, and he would pay the differane to the fin co. rather than the customer :wacko:

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yes for my own peace of mind I'd want to speak to them and pay it off direct. I might *lose* the car anyway now as someone else going up before I can get there but would rather do this than risk thousands of £££. Also questioning the intergrity of the guy and what else he hasn't told me as he kept this quiet so not too bothered! plenty more out there! :drive1

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yes for my own peace of mind I'd want to speak to them and pay it off direct. I might *lose* the car anyway now as someone else going up before I can get there but would rather do this than risk thousands of £££. Also questioning the intergrity of the guy and what else he hasn't told me as he kept this quiet so not too bothered! plenty more out there! :drive1

 

Aggreed the sensible option, under the circumstances :thumbs:

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yes for my own peace of mind I'd want to speak to them and pay it off direct. I might *lose* the car anyway now as someone else going up before I can get there but would rather do this than risk thousands of £££. Also questioning the intergrity of the guy and what else he hasn't told me as he kept this quiet so not too bothered! plenty more out there! :drive1

 

 

thats how i would look at it :thumbs: ,

 

if they are willing to hide something as large as the car isnt theirs :wacko:

 

what else isnt being revealed that wouldnt be noticed untill your home with the car you payed hard earned cash for... :headhurt:

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I had a similar thing when I bought my Yamaha R1. Bloke had HP on it. I phoned up the finance company directly and they refused to discuss this guys finance as obviously its private between the company and the borrower. But they did say that the HP loan on cars / motorbikes was always against the borrower and NOT the vehicle. Therefore they would never look at repossessing the vehicle and would always persue the borrower for any monies owned rather than the owner of the vehicle.

 

Interestingly the guy paid off the HP at the time, but even if I HP check my bike now it still shows the finance outstanding and this is 12 years later.

 

When I bought my zed there was also finance on it, from Lombard Business Finance, and the details were "unit stocking". When I checked up on this, it was the Nissan dealer who themselves cant afford to buy cars to put on their forecourt, they get finance in order to buy their stock in!

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