Buying a car with finance owed?????

SpannerMonkey

What's the story I did a history check on a car and it said there is finance owes on it , what's the story with that is there a risk in buying ???

Saab Ed

Do not buy a car with finance outstanding...Full stop. Unless the amount you are paying for this car is more or the same as the amount of finance owed and that part of your payment for the car is to the finance company to clear the debt and not into the vendors pocket, there's no way you should buy this car.

mickdw

Dont take ANYONES word that they are clearing it with the proceeds of the sale. If you must buy it, contact the finance company & settle it yourself & pay remainder to the seller. Any seller not happy with this is likely trying to scam you.

TippCork

Avoid any cars with finance owned on it and always do a check.

vectra

mickdw wrote: »

Dont take ANYONES word that they are clearing it with the proceeds of the sale. If you must buy it, contact the finance company & settle it yourself & pay remainder to the seller. Any seller not happy with this is likely trying to scam you.

Well,
Some people are 110% honest and above board, so not all should be tarred with the one brush.
I for one will be selling my car this year with outstanding Finance.
Anyone want to buy it from me are more than welcome to make the payment in the finance office with me.

Yawns

Yup the norm would be steer clear or make the final payments to the finance company yourself or witness them making it in the office, then pay the remaining balance to the seller.

If you do pay the full cash to the seller and he does not clear the finance, you do not own the car, the finance company still owns it until the recieve full payment.

mickdw

vectra wrote: »

Well,
Some people are 110% honest and above board, so not all should be tarred with the one brush.
I for one will be selling my car this year with outstanding Finance.
Anyone want to buy it from me are more than welcome to make the payment in the finance office with me.

Yes thats fine but if you came on here complaining that you wouldnt allow anyone to be involved in the clearing of the finance & just expect them to accept your word, that would be dodgy. That was my point.
Nothing at all wrong with what you are doing

Yawns

mickdw wrote: »

Dont take ANYONES word that they are clearing it with the proceeds of the sale. If you must buy it, contact the finance company & settle it yourself & pay remainder to the seller. Any seller not happy with this is likely trying to scam you.

+1

stepbar

The first car I bought had finance on it. However, I made sure the bank confirmed in writing, that the monies owed were cleared. I would not leave something like this to chance and depend on someone you don't know to do the honourable thing.

SpannerMonkey

Are you safe buying from an Simi dealership??

Yawns

SIMI means **** all to the customer tbh.

They won't give a toss if you go back to them saying there's outstanding finance on the car you bought.

At the end of the day if there is finance owed on a car, the car belongs to the finance company until it is fully paid for. If you buy it from anybody and they don't clear the finance, the finance company will repo the car from you.

The majority of the advice here will be to stay away from it. If you still really want it, you make the outstanding finace payment to the finance company.

Let's say the car your buying is 10k but there's outstanding finance of 7k owed to XX finance company. You make the payment yourself to the XX finance company for amount of 7k. Then you pay the last 3k to the seller. If he is not happy with this then walk away.

SpannerMonkey

No the one with finance on it is a private sale , tbh I don't think il go near it a different on is in an Simi garage , I thought simi can't sell a car with finance owed on it???

mickdw

With so many people & business going under at the minute, its not safe buying anything anywhere without doing a full check, SIMI or not. So no matter where you buy, do your finance check to be safe. There was a thread here about a garage that sold a car with finance owing & when confronted, all the garage seemed to do was shout the buyer down saying that there was no finance owing. This is not a situation you want to get into

Yawns

SIMI won't do a great deal to protect the buyer. They look after the motor industry first. It could take ages and get messy if trying to complain to SIMI. The best thing you can do is bring a mech or someone who knows a very good deal about cars with you and have them inspect it throughly. If your paying cash try to get a further discount. Cash is king.

If you don't know about cars and don't know anyone you can go thru the AA I believe. They can have an inspector checkit over so I'v read on these forums. Even a local mech nearby might checkit with ya when he's quiet for a few quid.

slimjimmc

davy_b wrote: »

No the one with finance on it is a private sale , tbh I don't think il go near it a different on is in an Simi garage , I thought simi can't sell a car with finance owed on it???

A financed car belongs to the finance company, not the person or dealer selling, until every cent of the debt is paid.
No one is allowed to sell a car without the permission of the owner, that's usually considered theft/fraud or something. You are not fully protected just because the dealer may be in the SIMI (is membership up to date?). That said, the dealer may only be selling it on behalf of the other guy and may not have asked too many questions.

If the finance co. have granted permission (check with them yourself) then all is well, if not then tread carefully no matter who you're buying from.

Yawns

OP if you could find a link to the car you are looking some people here might be able to help you out. The price might be too high etc.

Usually a dealer would also stick the car up on carzone.ie and so on.

rebel.ranter

A friend of mine was in the process of buying his last car when he carried out a finance check it the result showed outstanding finance. However he contacted the seller & it emerged that the seller had just cleared the outstanding finance (low amount in the end as it turned out) but the transaction had not updated the system that these finance reports use.
After a couple of days the report showed up clear. So if you are really interested in the car follow up on the finance issue, but as others have said don't buy the car with outstanding finance on it. Unless of course you would be happy for the finance company to one day arrive up at your hosue & remove the car from your driveway.

Cmar-Ireland

How do you go about getting a finance check done?

rebel.ranter

http://www.cartell.ie

http://www.mywheels.ie

http://www.motorcheck.ie/?gclid=CPjPiOXH6qACFQRslAod92CHGA

http://www.aaireland.ie/car-data-check/?gclid=CP3Opu3H6qACFQuElAoduEEaFg

To name a few

5500

If your going ahead buying a private car with finance how long does it take to clear? Eg if 5k is owed and you go to the bank or Company with a draft for 5k should all be rosy and safe to finish off the sale then or does it take a few days ect?

galwaytt

..there is no problem either buying, or selling, a car with finance on it. How do you think garages do trade-ins all day...? Wait for the client to pay it, and then trade...........?? Nope.

I sold a car with finance. I got a settlement figure from the finance company, which the buyer checked, and she made out payment to the finance company for that amount, and paid me the balance.
Easy, simple, quick.

mambo

Yawns wrote: »

If your paying cash try to get a further discount. Cash is king.

What is meant by "cash" in this context? Does it mean you bring along bank notes, or can it include a cheque, or debit card, or even a credit card?

bazz26

mambo wrote: »

What is meant by "cash" in this context? Does it mean you bring along bank notes, or can it include a cheque, or debit card, or even a credit card?

It means straight deal, ie no trade in, rather than the method of payment used.