Car with Finance on it, nearly caught out!

heinze

hi all, just wanted to find out what the story is with cars with finance owing on it.
i nearly purchased a car yesterday from a guy but fortunately i had done a check on it and got the email on the finance on the way to see it, before i even thought about handing over cash.

he never mentioned it until i brought it up and he came up with some lame excuse that it wouldnt be my problem or even an issue. he then revealed 6k still due on it. I said come back to me when the bank says its clear and got the hell outta there.

what is the story here? did i have a lucky escape or does the finance stay with him. some poor sod is gona get caught by this time waster. i was going to post a link to the ad on done deal but i dont think it would help, but id like to make people aware..

String

heinze wrote: »

hi all, just wanted to find out what the story is with cars with finance owing on it.
i nearly purchased a car yesterday from a guy but fortunately i had done a check on it and got the email on the finance on the way to see it, before i even thought about handing over cash.

he never mentioned it until i brought it up and he came up with some lame excuse that it wouldnt be my problem or even an issue. he then revealed 6k still due on it. I said come back to me when the bank says its clear and got the hell outta there.

what is the story here? did i have a lucky escape or does the finance stay with him. some poor sod is gona get caught by this time waster. i was going to post a link to the ad on done deal but i dont think it would help, but id like to make people aware..

Car that has finance on it can be repo'd no matter whos name it is in. When buying off a non official dealer or private you should always check with motorcheck/cartell etc.

Condatis

If it's a Hire Purchase Agreement the charge remains against the car. If the seller defaults the car could be reprocessed at any time from any place; even though it had been sold.

If there is money due after the car is sold the hirer remains liable for the debt.

Bearcat

Half the nation is on finance so if your buying privately expect finance on your purchase.

Ascertain from the finance company what is the exact amount outstanding.....draft to the finance company what's owed to them and the rest to seller.

If the seller is not forthcoming re finance owing.....walk away.

I've bought loads of yolks on finance and not a jot of trouble.....with the homework done....also if the seller knows you know your stuff they'll either deal with you and be honest or pick on easier prey of a buyer.

Use the old adage, a fool and his money.

Delancey

My guess is that these efforts to sell car with finance outstanding will probably increase , people are baling out of the country in numbers now and my guess is that many will finance their move with the proceeds of their car sale - by the time the sh1t hits the fan they'll be far away in Canada , Australia , etc.

coylemj

Condatis wrote: »

If it's a Hire Purchase Agreement the charge remains against the car. If the seller defaults the car could be reprocessed at any time from any place; even though it had been sold.

If there is money due after the car is sold the hirer remains liable for the debt.

But that's not the point, the issue is that if you buy a car with outstanding finance, the car can be repossessed. That's all the OP is concerned about.

heinze wrote: »

what is the story here? did i have a lucky escape or does the finance stay with him.

Yes, you had a lucky escape. If the finance is logged such that it comes up on motorcheck.ie or any equivalent website, it is a debt that stays with the vehicle and the car can be repossessed. Technically Condatis is correct, the fiance company can chase the original buyer if they are left with a defecit even after seizing the car from an innocent buyer and selling it but that won't be of any concern to you.

I had a similar lucky escape, I viewed a car by arrangement in a mutually convenient location (pub car park on the N11). The guy was selling it 'for a client' (red flag 1), he couldn't show me the registration cert. (red flag 2) so I said I'd think about it and get back to him.

It was a really nice car, well spec'ed and a lovely colour, I really wanted it and it was keenly prced, not a 'too good to be true' price but a fair price for a private sale with no warranty. It had reasonable mileage, service stamps in the book and was an 08 car in superb condition.

I went home and paid my money to one of the online websites - outstanding finance. I reported it to donedeal where the car was advertised, they didn't want to know.

Jimbob 83

Which site is the best way to spend your €35 Cartell or Motorcheck and also is the Motorcheck inspection any good for €199 euros ?

carbon nanotube

that honda i got, i did a check on it weeks after i got it

curiosity got the better of me, i used cartell.

everything came up good thankfully.

String

I used motorcheck recently when looking at cars and got 3 reports for €65 euro which I thought was very good price! 1 lemon, 1 finance, and 1 auction car eventually found a car in a vw dealership. Good thing about them is that they do finance/history checks on all used cars before they take them as trade ins

coylemj

DrMorphine wrote: »

Good thing about them is that they do finance/history checks on all used cars before they take them as trade ins

That's what you're paying for when you buy from a main dealer, that and the warranty.

Cars for sale privately with outstanding finance and indy dealers selling crocks of sh1te is what helps keep main dealers in business.

You can get a bargain in a private sale but it's caveat emptor all the way, including the finance check.

Compton

mywheels.ie is good for just checking finance - about 7 quid I think

I was lucky too - was looking at a punto that had 3.5k finance!!

jdmluder

Should have a thread on here with links to cars with outstanding finance where the seller has attempted to cover it up! It is way to easy to get caught out. Should be logged on the vrc.

CiniO

Shouldn't there be an information about any financing against the car, in VRC (Vehicle registration Certificate)?
I think that's the way it works in other countries. When you are buying, you just check VRC and if it doesn't state anything about financing on the car, then car is clear.

bazz26

CiniO wrote: »

Shouldn't there be an information about any financing against the car, in VRT?
I think that's the way it works in other countries. When you are buying, you just check VRT and if it doesn't state anything about financing on the car, then car is clear.

How does that work on a second hand car? VRT is only paid once, when the car is brand new or when it is imported. A car can change ownership plenty of times after that and still be bought on finance/hire purchase.

youtube!

I never like when I am looking at a car on Donedeal or wherever and the photos of the car have the reg plate blanked out, that always strikes me as well
dodgy. Its as if the seller doesnt want a car check done knowing full well he is hiding something... another red flag IMO.

CiniO

bazz26 wrote: »

How does that work on a second hand car? VRT is only paid once, when the car is brand new or when it is imported. A car can change ownership plenty of times after that and still be bought on finance/hire purchase.

Sorry. I meant registration certificate.

bazz26

youtube! wrote: »

I never like when I am looking at a car on Donedeal or wherever and the photos of the car have the reg plate blanked out, that always strikes me as well
dodgy. Its as if the seller doesnt want a car check done knowing full well he is hiding something... another red flag IMO.

This has been brought up plenty of times. Some sellers don't want their reg seen on the advert because it could be cloned to be used for crimal activity such as driving through a toll or filling up on fuel and driving off without paying. Yes there are other ways of cloning but this way is just too easy. If you are interested in the car then you can get the reg from the seller by asking over the phone or in person when you view the car.

Disgarding a car simply because the reg plate isn't shown is just daft imo.

bazz26

CiniO wrote: »

Sorry. I meant registration certificate.

The Data Protection Act I would hazzard a guess at.

CiniO

bazz26 wrote: »

The Data Protection Act I would hazzard a guess at.

What data protection?
No data would be relieved to anyone.

If car is used as collateral to secure a loan, there this fact definitely should be mentioned in car documents.
Only person having access to this documents is car owner, and in case of sale, the seller.

coylemj

CiniO wrote: »

What data protection?
No data would be relieved to anyone.

If car is used as collateral to secure a loan, there this fact definitely should be mentioned in car documents.
Only person having access to this documents is car owner, and in case of sale, the seller.

The problem with putting that on the cert. is that it stays on the paperwork and you would have to go back to the revenue to issue a new (clean) cert. when the loan is paid off.

Since the finance on the vehicle is of no convern to the revenue, it's no surprise that they don't offer the facility to mark the cert with the fact that there's outstanding finance. It would also deprive the various service providers (motorcheck, cartell etc.) of revenue and in many cases put them out of business.

Jimbob 83

How do motorcheck/cartell check milage apart from when it's recorded doing the NCT ?

Compton

Realistically finance companies should keep the log-book until the car is fully paid for, that would be the easiest way!

CiniO

Compton wrote: »

Realistically finance companies should keep the log-book until the car is fully paid for, that would be the easiest way!

Logbook is needed quite often.
You might need it when taxing your car.
You need to to NCT your car.
And obviously you need it anytime you want to travel abroad with your car.

They can't just take it.
But they definitely should mark it somehow.

CiniO

coylemj wrote: »

The problem with putting that on the cert. is that it stays on the paperwork and you would have to go back to the revenue to issue a new (clean) cert. when the loan is paid off.

Yes. What's the problem with that?

coylemj

CiniO wrote: »

Yes. What's the problem with that?

Please read ALL of my post.

jdmluder

So could we not have a thread with ads with cars with outstanding finance on it where the seller intends to deceive the buyer.

I know of one such audi s_line a4 in letrim!

CiniO

coylemj wrote: »

Please read ALL of my post.

I did. I also read your earlier posts... F.e

Yes, you had a lucky escape. If the finance is logged such that it comes up on motorcheck.ie or any equivalent website, it is a debt that stays with the vehicle and the car can be repossessed

If we are talking about debt that stays with a vehicle, it's definitely very relevant information and should be noted in vehicle official documents, no matter if revenue has any business in this or not.
Argument about taking companies like motorcheck or mywheels out of business by doing so is worth a laugh, as they are doing business just because system doesn't work like it should.

As I told you - if a car is due to any finance, this fact should be noted in vehicle documents, which in Ireland is VRC. That's the way it's done in other countries.

coylemj

It would make far more sense for the financial institutions to club together and create a website where the ordinary Joe could enter the registration number whereupon he would be told that institution xxx is owed yyy euros on an outstanding loan on that car and that anyone buying such vehicle from the (unspecified) registered owner should withold that amount of money in lieu of the outstanding debt or risk having the vehicle repossessed.

That's all that the punter needs, not to be paying money to a third party or that the revenue should endorse the registration cert.

heinze

jdmluder wrote: »

So could we not have a thread with ads with cars with outstanding finance on it where the seller intends to deceive the buyer.

I know of one such audi s_line a4 in letrim!

thats the very one jdmluder!!