Found a nice car - But there's finance on it.

1867IE

Hi all,

I've looked at a car today that I REALLY like, it's not too good to be true (I'd thought), ie mileage is ok for age, few stone chips, service history ads up, price is about right etc.

The car unfortunately, has finance outstanding. I looked at it in Derry, it's £3500 and there's approx £3000 finance left on it.

Is this car a no no, or is there any way around it? I'd hate to see this go to waste as I've been looking for ages.

The owner says he is paying off the finance when he sells the car, but that means nothing as such.

Any way around it?

Henry Ford III

Simples. 2 drafts. First one to finance house. 2nd one for the balance to the seller.

1867IE

Henry Ford III wrote: »

Simples. 2 drafts. First one to finance house. 2nd one for the balance to the seller.

Excuse my ignorance but would this be common practice?

Conor_M1990

Id walk unless the seller was willing to put it into writing that they would clear the finance and this was signed by the bank and a soliciter only way round it as far as I can see

Bigus

I'd be handing the finance draft or electronic transfer directly to the company and getting a receipt.

EPM

Henry Ford III wrote: »

Simples. 2 drafts. First one to finance house. 2nd one for the balance to the seller.

This is the only way to do it. Never trust anyone else to do it.

1867IE

EPM wrote: »

This is the only way to do it. Never trust anyone else to do it.

Fair point, might look into this.

I'm sure the finance company will have no objection?

Gumbo

ive done this on 2 cars, and both cars were mid 20k values with high teens of finance outstanding.

the most recent one was to TSB in Dublin.
i simply seen the letter to state what exact value is left on the finance, i lodged a draft directly in the bank to the account number on the finance and gave a draft of the balance to the seller.

under no circumstances give the seller the 2 drafts, even if one draft is made out to the bank etc, there may be ways around it for him to cash it.

go to the bank with the seller if needs be to lodge the finace clearing draft.

garhjw

personally i wouldn't go near it but if you are set on this car i'd do as already recommended - 2 drafts, 1 for the finance company and the balance to the seller. if he has a problem with that then you know to walk away.

Bigus

1867IE wrote: »

Fair point, might look into this.

I'm sure the finance company will have no objection?

They'll be jumping up and down with delight.

Just make sure you don't pay off the finance and not get possession of the car.

your going to have to talk to the seller and the finance company to work out an arrangement

1867IE

Good stuff,

Thanks for the replies, kceire, great info.

Normally I'd run a mile but the car is just what I want.

itarumaa

I have a policy, that if the seller does not inform in the ad that the car has outstanding finance and I do the background check of the car, then I walk away right away (and I did that).

Dishonesty is something I do not like at all so in my eyes the seller that does not inform the finance, he or she is dishonest and should not be dealt at all.

Also if the plates are not visible in the ad and I call the seller, ask him/her the plate number and if I do not get this information, then the deal is off (so I will not even go to see the car). This I have done as well.

Side Show Bob

1867IE wrote: »

Hi all,

I've looked at a car today that I REALLY like, it's not too good to be true (I'd thought), ie mileage is ok for age, few stone chips, service history ads up, price is about right etc.

The car unfortunately, has finance outstanding. I looked at it in Derry, it's £3500 and there's approx £3000 finance left on it.

Is this car a no no, or is there any way around it? I'd hate to see this go to waste as I've been looking for ages.

The owner says he is paying off the finance when he sells the car, but that means nothing as such.

Any way around it?

If you use 2 drafts one to the seller and one to the finance company, the seller, if corrupt can have that amount allotted or used to pay another item on finance with the same bank or finance house.
If you do a bank transfer you have no Idea where it is going.
The only way is to have him instruct the finance company that he is selling the car, the finance company in turn must write to you and give you their consent to the sale of the car, once this happens it is up to the seller and the finance company as to where the cheque or bank draft is lodged.
You must have written consent from the finance company, you must then call the company to verify that the letter or email is from them, do not accept any mobile number that is on the letter or email, it must be a landline number to the bank / finance company branch.

taintabird

EPM wrote: »

This is the only way to do it. Never trust anyone else to do it.

Totally agree only way to be sure

slimjimmc

Side Show Bob wrote: »

If you use 2 drafts one to the seller and one to the finance company, the seller, if corrupt can have that amount allotted or used to pay another item on finance with the same bank or finance house.
If you do a bank transfer you have no Idea where it is going.
The only way is to have him instruct the finance company that he is selling the car, the finance company in turn must write to you and give you their consent to the sale of the car, once this happens it is up to the seller and the finance company as to where the cheque or bank draft is lodged.
You must have written consent from the finance company, you must then call the company to verify that the letter or email is from them, do not accept any mobile number that is on the letter or email, it must be a landline number to the bank / finance company branch.

This bit is important.

The guy selling the car is not the legal owner of the car and has no legal authority to sell it without the express permission of the true legal owner, i.e. the bank/finance company.
Now, I'm sure no finance company would for a moment refuse an instant settlement of a debt.