Buying a car with the outstanding loan

maly07@poczta.o

Hi

The guy im buying the car off, has the loan on that car. After negotiations,
I agreed to go with him to the bank and clear that loan with my bank draft in person. The loan is exactly the same amount as agreed price.
I expect to get the reg certificate as soon as we put the bank draft in the bank so i can change the ownership, is that right? and the car of course!:pac:

Has anyone else done deal like that, is there anything else i should be aware of?

thanks

Drummerboy08

There shouldnt be any problem doing this. Make sure to get a letter that says the loan has been cleared, although you may have to wait a few days for the bank to give you one.

Both of you should sign the log book (reg cert) and do the change of ownership on the same day that you collect the car. Both should go to the post office, to post it together, so both parties know its been completed. Expcect it in the post between 7 to 10 working days after its been sent away. BTW, the seller should have this already - no need to wait until you go to the bank.

EPM

Unless it's something very rare I'd be careful. Plenty more cars out there. Run a history check (although I dont know how much info this gives on the finance owed) too. Just sounds a bit sus to me you paying someones finance off for them basically. Make sure the bank gives a guarantee that finance is gone

Drummerboy08

All the OP is doing is buying a car at X amount. Its just a coincidence that the amount of finance owed on the car is the same amount.

The seller obviously isnt making any money, but he's clearing his finance, the OP gets a car which they're obviously happy with, so its win win. There will be no risk for the OP, as all the finance on the car will be cleared!

Nothing too suss IMO.

EPM

Drummerboy08 wrote: »

All the OP is doing is buying a car at X amount. Its just a coincidence that the amount of finance owed on the car is the same amount.

The seller obviously isnt making any money, but he's clearing his finance, the OP gets a car which they're obviously happy with, so its win win. There will be no risk for the OP, as all the finance on the car will be cleared!

Nothing too suss IMO.

You're prob right - it's the exact amount just got me thinking along the lines of my long lost uncle Roger in Nigeria who I'm buying a car from (and also tells me that if Igive him my bank details he'll transfer 500,000,000 into my account:D)

Fatswaldo

I've done this from both sides on several occasions - no probs to date. No bank details etc have to be exchanged. Seller just settles the outstanding balance with the amount he gets from the buyer and gets a confirmation statement from the bank.

Mikefitzs

The seller should have a letter less than 14 days old with a settlement figure agreed so that there are no further charges attached. Some Hire Purchase loans have an admin charge at the end of the term and it has to be paid before the car is released from the agreement. Ask the seller to call the lender while you are present and to give the lender permission to speak with you about the agreement, the lender needs permission because of the Data protection Act. You ask for the settlement figure, then get a bank draft from your bank made out to the lender for the agreed sum. Note that the car will not be released until the draft has cleared, 5 working days.
Happy driving with your new motor.
I wouldn't bother with all the post office stuff, just take the registration documents with you to ensure that they are posted.

maly07@poczta.o

Thanks for all ur advice, now im feeling much better about the whole thing.
Few people said to me to walk away from that deal or wait until the loan is cleared, but i thought there must have been someone who did it before.
Im actually thinking about bringing cash to speed up the process, my insurance runs out this weekend on the old car, so would like to have new one sorted asap.

Thanks again

CharlieCroker

Do NOT bring cash with you, You dont know these people. Bring a bank draft if anything. Will clear straight away and still safer than cash

Mikefitzs

I think you're missing the main point here. If you pay cash the seller can hop on a plane and go, you are then left with a car that you DO NOT own. Please Please Please send a bank draft directly to the finance company/lender that owns the car. NEVER pay cash when you know the seller is not the owner.
I work in a finance company and used to buy and sell cars on the side so I know what happens.

DO NOT PAY CASH FOR THIS UNLESS YOU ARE PAYING INTO THE LENDERS ACCOUNT AT A BANK COUNTER.

Good Luck!

Mikefitzs

Bank Drafts DO NOT clear straight away and can in fact be stopped. Check with your bank if you need further confirmation.

maly07@poczta.o

I wont be giving money to the seller, although thats what he suggested in the first place. I said either we go together to the bank that provided the loan and i put the bank draft/cash myself or no deal at all.
We r going to the head office, so if i bring cash and pay it over the counter the loan is cleared straight away and i can get the letter saying that there is no finance on that car anymore.
The seller is 100% sure that the money come in, where if i pay by bank draft it takes 5 days (as someone suggested).
Then he can safely hand over the registration certificate to me on the same day.
Am I right about it? Just wanted be sure both sides can be 100% sure and safe at the same time.

Thanks

quenching

Well I always thought that the SELLER was supposed to return the reg document and not hand it over to the buyer. Theres no guarantee that the buyer will ever complete the change of ownership and then the original seller is still the one who gets parking tickets, tolls, speeding camera fines etc. I've always made sure it was me who posted the reg doc when selling. If you're unsure then watch them pop it in the postbox. Having the reg doc is not proof of ownership anyway, it just states who is the currently registered keeper, in this case the bank/finance company actually own the car.

Mikefitzs

Quenching, if you trade in your car or sell your car at auction the dealer or auctioneer will not take your car without you handing over the registration cert. I used to buy and sell cars before the **** hit the fan here and I would always insist on having the reg. cert in my hands before parting with funds, simply because I don't trust people to do the things they should, if I didn't have the cert I could not sell on to anyone.
I got caught with buying a motorbike when I was 19 and learned my lesson and it took 8 months of ringing and sending letters to the seller and eventually had to go to the Gardai before I could get my registration cert. All because the seller was a lazy f**ker and just wouldn't bother to stick the cert in a post box.

CJhaughey

Mikefitzs wrote: »

I got caught with buying a motorbike when I was 19 and learned my lesson and it took 8 months of ringing and sending letters to the seller and eventually had to go to the Gardai before I could get my registration cert. All because the seller was a lazy f**ker and just wouldn't bother to stick the cert in a post box.

A few parking fines would sort the lazy fecker out! Park in a city in an awkward spot and things will soon happen.

quenching

Mikefitzs wrote: »

Quenching, if you trade in your car or sell your car at auction the dealer or auctioneer will not take your car without you handing over the registration cert. I used to buy and sell cars before the **** hit the fan here and I would always insist on having the reg. cert in my hands before parting with funds, simply because I don't trust people to do the things they should, if I didn't have the cert I could not sell on to anyone.
I got caught with buying a motorbike when I was 19 and learned my lesson and it took 8 months of ringing and sending letters to the seller and eventually had to go to the Gardai before I could get my registration cert. All because the seller was a lazy f**ker and just wouldn't bother to stick the cert in a post box.

Thats a different situation to the one the OP is talking about, when trading in a car to a legally registered dealer they are not listed as owners, they are supposed to be trusted to complete the change of ownership as required when they sell the car. If you sell privately the seller should return the documentation.

Mikefitzs

quenching wrote: »

Thats a different situation to the one the OP is talking about, when trading in a car to a legally registered dealer they are not listed as owners, they are supposed to be trusted to complete the change of ownership as required when they sell the car. If you sell privately the seller should return the documentation.

The whole thing is based on trust, if you trust that the seller will send the cert to the DOE then fine but as I learned at an early age do not trust people. Get the cert and post it yourself or as already suggested in the thread take the seller to the post office and watch them put it in the postbox.