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outstanding finance?


willttqs

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Hi all,

 

someone offered me a car that had outstanding finance owing on it. What are your thoughts? i said it was a no, as i know legally the finance company own the car until repaid in full, and potentially could re-poses if it is not paid

 

Shame though as it seemed a bargain

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Not a problem at all, as long as you handle it in the right way.

 

Correct way is for the remaining finance to be paid off over the phone by the purchaser with the owner making the initial call, that is then followed up immediately by a confirmation email from the finance company confirming that they consider the debt settled and have no further interest in the vehicle. Purchaser can then take the car knowing the car is clean, and the ex-owner is sure that the money was legit and the finance company won't come chasing.

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Could be worth a look into if you could talk to the finance company and explain you want to buy it and see what they say.

You may be able to transfere the outstanding finance over to you.

What ever happens the finance company are going to want their money.

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I bought a motorbike once which the previous owner had finance on it according to the Hpi report I did. I rang up and spoke to the finance company and they said they would have no interest in the bike at all as the finance was with the person who took the policy out and not against the bike. That was about 10 years ago and ive never heard anything from the finance company since. I actually did an HPi check on it a few years back and its still showing as it had finance on it, so ive no idea whats going on with it!

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i asked for the seller to phone up the credit company, and that i would pay whatever is owed off to them, and then give the remainder to him. he declined this.

 

i was concerned as he had only owned it for four months

 

Sounds like you need to put your NIKE air on and get the flurk outta there :thumbs:

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i asked for the seller to phone up the credit company, and that i would pay whatever is owed off to them, and then give the remainder to him. he declined this.

 

i was concerned as he had only owned it for four months

 

Hmm, wonder if he was in negative equity so to speak. In any case, the finance must be paid off before he can sell the car, there's nothing else you can do.

 

Pete

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i asked for the seller to phone up the credit company, and that i would pay whatever is owed off to them, and then give the remainder to him. he declined this.

 

i was concerned as he had only owned it for four months

 

Thats the only way to do it - unless you know how much is owed and pay him the difference - your not going to pay him all the money when it has finanace on it, or is that what the seller was suggesting you do?

 

 

But really it's prolly not worth getting involved with find another one :thumbs:

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yeah i asked to find out the settlement figure and that i would pay that and then the rest to him. he said that he owed a small amount so it is was not worth it and that he wanted the full amount to buy another car, and i presume continue with the payments. he seemed a genuine guy, but the deal seemed to good to be true, and would have been based on trust. not something i was willing to do

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I sold a one year old astra VXR to a trader in july 2009. He got a flight from birmingham with a bag of cash. I picked him up at airport, showed him the car. He was happy we then went to the bank together to deposit the £15k in cash. Then went to my home to pay the outstanding £5500 off over the telephone and guess what. The fecking bank froze my account for 3 hours until there fraud team had a chat with me!

I eventually got it paid and the guy was on his way. I had to tax the car a day before he came to put my privaye reg on retention at DVLA. The guy said he would withhold £250 until i forwarded him the V5 when i got it. A week later i did and he sent me a cheque for the £250 and extra to cover te road tax.

The guy was a true gentleman and the initial call started with " would you be intrested in a no hastle trade sale fo your VXR" and i nearly hung up on him, lol.

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i asked for the seller to phone up the credit company, and that i would pay whatever is owed off to them, and then give the remainder to him. he declined this.

 

i was concerned as he had only owned it for four months

 

That's the only way you should be doing it. The guy clearly wants the cash and doesn't want to pay the finance... Since the finance company own the car, I'd be getting the fook out of that one.

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When we HPI'd the van it showed outstanding finance and who it was with and their phone number. So when we went to buy it we called them up, paid the balance and the the rest to the seller. We both got immediate confirmation by email afterwards. That's the only safe way to do it :thumbs:

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