How to pay for a €50k car

charleville

Hi,

We are going to look at a car from a private seller on Friday.

The car is 50k, just wondering how is the best way to pay for this car, I'm not going to be bringing that much cash with me obviously.

Also when we ran a motor check to make sure everything was in order (which it mostly was) it showed the car still had another 2 years finance left on it, so how do I sort that out too with the seller if finance is left owed do I find out who it's with and lay the balance off to them then the rest to seller ??

He's providing me a vat receipt For this too as I'm vat registered.

Tks

bear1

You are thinking of handing over 50k to a private seller for a car that will have no come back and has finance owing on it?

BorneTobyWilde

A vat receipt on a used car. Surely vat on car is paid but once when new?

kirving

No matter how genuine the seller, you're crazy spending €50k on a car which you have no comeback on.

Even if it's under manufacturer warranty, can you tell with 100% certainty that nothing had been done which may void that warrant, or not be covered, intentional or not?

blindside88

Sounds like a dodgy situation OP, I'd walk away. Is it significantly cheaper than other options available from a garage? At the very least I'd be telling the seller to clear the finance before you hand over a penny

drunkmonkey

Thread carefully, showing you a vat receipt is nonsense he might as well show you a copy of the bible unless your vat registered and can claim back vat.
This is an import?
50k is a lot for a second hand car and with the price or sterling at the moment you'd have to talk to some specialist importers or buy from a dealer direct in the UK. On the likes of some BMW's etc the UK warranty is good in Ireland and will be honoured here by main dealers.

How to pay? Cash, bank draft, bank transfer, however you want just be aware when the money's gone to him it's gone.
Be very carefull if there's finance outstanding as its not his to sell.

What car is it, I'm presuming it's 3yrs old as there's 2 years finance on it.

I'm going to go out on a limb and guess this is a Porsche Macan, there's a fortune to be saved getting it in the uk.

I don't think you can vat back, there is something about a car from the uk under 6mts old, also if making it a company car you'll have to pay the bik on the new price, could cost you a small fortune. Could be better buy it privately and charge the business Milage and pay yourself extra to cover the finance, talk to your accountant before doing anything.

XR3i

charleville wrote: »

Hi,

We are going to look at a car from a private seller on Friday.

The car is 50k, just wondering how is the best way to pay for this car, I'm not going to be bringing that much cash with me obviously.

Also when we ran a motor check to make sure everything was in order (which it mostly was) it showed the car still had another 2 years finance left on it, so how do I sort that out too with the seller if finance is left owed do I find out who it's with and lay the balance off to them then the rest to seller ??

He's providing me a vat receipt For this too as I'm vat registered.

Tks

spnds like bargain, go to western union and transfer themonies, or bank postal order, sound very doog bargain

Atlantic Dawn

You would want the car properly checked to see the engine, chassis numbers etc have not been cloned from another car too, the motor check you have done could be on another car this one is cloned from.

When finance is outstanding on the car you need to make payment out in 2 portions, the first with the outstanding balance owed to the finance company and the remainder to the seller of the car.

XR3i

Atlantic Dawn wrote: »

You would want the car properly checked to see the engine, chassis numbers etc have not been cloned from another car too, the motor check you have done could be on another car this one is cloned from.

When finance is outstanding on the car you need to make payment out in 2 portions, the first with the outstanding balance owed to the finance company and the remainder to the seller of the car.

chill ouy man, its only fifty k ,

Atlantic Dawn

XR3i wrote: »

chill ouy man, its only fifty k ,

€50k to some people is walking around money, they wouldn't miss it, to others it's a little more worth something to them :pac:

XR3i

Atlantic Dawn wrote: »

€50k to some people is walking around money, they wouldn't miss it, to others it's a little more worth something to them :pac:

i beg your pardon , i know the value of money, i use to work in a ound shop where everything was worth a pound, except me, i was worth 8.95 pounds an hour

Ninap

I sold two cars for around that sum, but in the end both went to main dealer garages. So there are some genuine sellers, but I still wouldn't be keen to drop that kind of money with no comeback. Minimum protection you want, in addition to mechanical and history checks, is the verified name and address of the seller, and proof of a bank account in his name to make the transfer to. Get some form of bill of sale too.

Ninap

I sold two cars for around that sum, but in the end both went to main dealer garages. So there are some genuine sellers, but I still wouldn't be keen to drop that kind of money with no comeback. Minimum protection you want, in addition to mechanical and history checks, is the verified name and address of the seller, and proof of a bank account in his name to make the transfer to. Get some form of bill of sale too.

Soarer

This thread has to be a wind up.

cup of tea

I presume you were told there was finance outstanding?.... or did you find out through your own checks? Just out of interest!

charleville

Wow some petty and snarky replies here... Along with some very useful ones I may add (thank you), you all know who you are.

I'm only going to look at the car, he may well tell me the finance is outstanding but I've only chatted to him briefly over the phone to arrange viewing the car and basic details etc.

It's technically classed a commercial vehicle (not a Porsche unfortunately) so I will be able to reclaim the vat, which he will provide me with a receipt that I will cross check with the logbook name and make sure the vat no is up to date etc.

The car is 2 years old and he bought it new from a main dealer and he has a full service history also from that same main dealer where he bought it, I'm assuming (and I will check) that the finance will be with this dealer also, if so as suggested by a helpful poster above I will look to repay this first, thank you.

Also I will only consider buying it if it passes a full and thorough AA car inspection test which is done out on the naas road and takes around a half day to complete, the guys there go through everything with a fine tooth comb.

I would be getting the car for almost 5k cheaper buying privately, we've already discussed the price before I drive to inspect it as its about a 3 hour drive for me (I guess he doesn't have the same mark up as a garage sale - or may need the cash more, or nay just want to clear the finance.. Who knows)

Bono once said.. If a man looks up the hill at the person with the big gates the nice car and the nice house he'd say "some day I'm going to be that guy"

However if an Irishman looks up the hill at the person with the big gates the nice car and the nice house he'd say "some day... I'm going to get that f**k*r"

Thanks for your help guys

bear1

charleville wrote: »

Wow some petty and snarky replies here... Along with some very useful ones I may add (thank you), you all know who you are.

I'm only going to look at the car, he may well tell me the finance is outstanding but I've only chatted to him briefly over the phone to arrange viewing the car and basic details etc.

It's technically classed a commercial vehicle (not a Porsche unfortunately) so I will be able to reclaim the vat, which he will provide me with a receipt that I will cross check with the logbook name and make sure the vat no is up to date etc.

The car is 2 years old and he bought it new from a main dealer and he has a full service history also from that same main dealer where he bought it, I'm assuming (and I will check) that the finance will be with this dealer also, if so as suggested by a helpful poster above I will look to repay this first, thank you.

Also I will only consider buying it if it passes a full and thorough AA car inspection test which is done out on the naas road and takes around a half day to complete, the guys there go through everything with a fine tooth comb.

I would be getting the car for almost 5k cheaper buying privately, we've already discussed the price before I drive to inspect it as its about a 3 hour drive for me (I guess he doesn't have the same mark up as a garage sale - or may need the cash more, or nay just want to clear the finance.. Who knows)

Bono once said.. If a man looks up the hill at the person with the big gates the nice car and the nice house he'd say "some day I'm going to be that guy"

However if an Irishman looks up the hill at the person with the big gates the nice car and the nice house he'd say "some day... I'm going to get that f**k*r"

Thanks for your help guys

Your last paragraph is utter nonsense.
You are saving 5k by not going to a dealer but yet have you factored in the cost of clearing the finance?
Even so if you are willing to spend 50k with 0 comeback then id rather fork out the 5k and get myself a safety cushion in case the car goes tits up.
But hey, we are all just jealous Irish posters.

Tzardine

Thinly veiled I have 50k thread.

But seriously I would not be handing over any money, not a cent, until there is proof of finance cleared on the car.

If you hand over €50,000 and he does not clear the finance, the bank will take the car off you and you then have to chase the seller for the money back. Do you really want that kind of worry.

Walk away, pick a different car for sale. Its a buyers market and with 50k cash in your pocked you are in a good position.

colm_mcm

Talk to your accountant about the vat situation on paying off finance and buying the vehicle at the price minus settlement figure, which is what you're doing.
It's not as straightforward as just claiming the vat off the top.

charleville

colm_mcm wrote: »

Talk to your accountant about the vat situation on paying off finance and buying the vehicle at the price minus settlement figure, which is what you're doing.
It's not as straightforward as just claiming the vat off the top.

Do you know how this works exactly ?
Interesting point and I'll call my accountant later today to find out.

5k is a big safety cushion for a warranty that a dealer only gives you for one year... If the car passes a thorough inspection surely that 5k would be better off spent if something actually did go wrong in that one year the garage gives you, on the other hand if it's passed a thorough inspection what's the chances of that happening and costing more than 5k.
We all see things differently but I respect your opinion.

Also I'm not in any way showing off that I have 50k as mentioned above, I was simply asking for advise on how best to pay/transfer that much funds, and in the process found out some other possible queries to ask,
so I thank you all for your input it's appreciated and apologies if I sounded rude in my last post about the Irish thing.

Mezamo

I recently bought a car and took out finance. In the finance agreement it clearly states that ownership of the vehicle does not pass to me until the final payment is made. So if you apply this to your situation the person selling the car technically does not own it. If it was me I would want proof that the finance is cleared in writing from the finance company before parting with any cash or walk away and find something else, but that is totally your call.

Soarer

Have you rang a dealer and offered them €5k less than their asking price?

I don't begrudge you the car. And if you've enough cash to risk €50k to save €5k, more power to you.

I just reckon you're balls-out crazy, and if your accountant has any bottle, he'll tell you the same thing.

charleville

OSI wrote: »

I would ask him to provide you with confirmation from the finance company on the settlement figure, and then make arrangments with the finance company to have that paid directly before handing over the difference in a bank draft.

Do you know how this works with the vat receipt then for the full amount ?

Let's imagine the remaining finance is 20k,

So would I pay 20k to the finance company + 30k to the seller but he gives me a vat receipt for the full 50k ?

charleville

OSI wrote: »

How is a private seller going to provide you with a VAT receipt? You're not paying him any VAT.

He has his own business and is vat registered as am I, it's no different to claiming back vat on anything else you would claim back vat on,

The car is registered through the business

Dravokivich

charleville wrote: »

Do you know how this works with the vat receipt then for the full amount ?

Let's imagine the remaining finance is 20k,

So would I pay 20k to the finance company + 30k to the seller but he gives me a vat receipt for the full 50k ?

VAT would only be on the initial purchase of the vehicle. There's no VAT on secondhand goods. How are you intending on claiming a VAT rebate on this?

lawred2

charleville wrote: »

Hi,

We are going to look at a car from a private seller on Friday.

The car is 50k, just wondering how is the best way to pay for this car, I'm not going to be bringing that much cash with me obviously.

Also when we ran a motor check to make sure everything was in order (which it mostly was) it showed the car still had another 2 years finance left on it, so how do I sort that out too with the seller if finance is left owed do I find out who it's with and lay the balance off to them then the rest to seller ??

He's providing me a vat receipt For this too as I'm vat registered.

Tks

Stay away from it... Seriously.

ronaneire

Dravokivich wrote: »

VAT would only be on the initial purchase of the vehicle. There's no VAT on secondhand goods. How are you intending on claiming a VAT rebate on this?

Not on a commercial vehicle. If the selling price is €50K. The actual selling price is €40650.00 and the VAT @ 23% is €9349.50.

lawred2

How exactly is the car his to sell if there is finance owing on it?

It belongs to the finance company.

mittimitti

I love some of the comments people that don't have a clue answering what they don't understand


If you agree to buy the car the seller will need to invoice you from the registered owner on the registration certificate
This person/company needs to be vat registered with a valid vat number that can be checked online or with revenue

They invoice you for the full amount of the sale and you pay them the amount that they own and the balance is paid to the finance company
You can pay direct to the finance company but they wont tell you anything because of data protection so this is the bit you need to be careful with it will take a few days for the finance company to come off on a cartel report

bear1

If there is finance owing on a car then it is the bank/FI that owns the car and not the actual seller.
Until each cent has been paid back you would need to contact whoever financed the car in order to receive approval that the car can indeed be sold.
Don't expect them to tell you much due to the data protection laws.

Stealthfins

What kind of car is it ?

deadanonymau5

charleville wrote: »

Wow some petty and snarky replies here... Along with some very useful ones I may add (thank you), you all know who you are.

A belated welcome to Boards.ie!

Mary63

I would want three cars for 50k.

username?!

People going mad about buying a used car for 50k from a private seller and I've just put up a car for sale privately for nearly 40k.

So going by the replies I will never get anyone to buy it so?

What am I suppose to do with it then? :rolleyes:

There is no difference between buying a car for 5 or 50k once you do the correct checks and all checks out.

Oafley Jones

Stealthfins wrote: »

What kind of car is it ?

I'm guessing Disco.

BobBobBobBob

The good times are back baby!!

kirving

username?! wrote: »

There is no difference between buying a car for 5 or 50k once you do the correct checks and all checks out.

There is a difference, 45k

All the checks in the world and you can still buy a dodgy car with no comeback.

millington

username?! wrote: »

People going mad about buying a used car for 50k from a private seller and I've just put up a car for sale privately for nearly 40k.

So going by the replies I will never get anyone to buy it so?

What am I suppose to do with it then? :rolleyes:

There is no difference between buying a car for 5 or 50k once you do the correct checks and all checks out.

Depending on the car, you may not actually find anyone willing to spend that much on a private sale unless it's something special or ferociously cheap

MackMack

Something I'm sure your accountant will tell you when trying to claim the VAT back on this car, if it's not 100% business use then you can only claim a certain amount of the VAT. So if it's 50/50 on business/personal use then you can only claim 50% of the VAT back.

bidiots

username?! wrote: »

People going mad about buying a used car for 50k from a private seller and I've just put up a car for sale privately for nearly 40k.

So going by the replies I will never get anyone to buy it so?

What am I suppose to do with it then? :rolleyes:

There is no difference between buying a car for 5 or 50k once you do the correct checks and all checks out.

Make sure to come back and let everyone know when you sell it, to quell the disbelief obviously

CiniO

Kevin Irving wrote: »

There is a difference, 45k

All the checks in the world and you can still buy a dodgy car with no comeback.

Can you give few examples what could come dodgy that checks could miss?

Tzardine

CiniO wrote: »

Can you give few examples what could come dodgy that checks could miss?

Rotator splints.

Brian Scan

Tzardine wrote: »

Rotator splints.

Only 100 euro a corner.

bmwguy

username?! wrote: »

People going mad about buying a used car for 50k from a private seller and I've just put up a car for sale privately for nearly 40k.

So going by the replies I will never get anyone to buy it so?

What am I suppose to do with it then? :rolleyes:

There is no difference between buying a car for 5 or 50k once you do the correct checks and all checks out.

You will struggle unless the car is close to 50k from a reputable dealer. Think about it, who has 40k in cash and is willing to hand it over in these days of finance offers, low interest, warranties, dodgy sellers.

Bigus

bear1 wrote: »

If there is finance owing on a car then it is the bank/FI that owns the car and not the actual seller.
Until each cent has been paid back you would need to contact whoever financed the car in order to receive approval that the car can indeed be sold.
Don't expect them to tell you much due to the data protection laws.

Incorrect.
One bank Handed over to the finance company in the amount of balance owing with a receipt to prove finance clear and another draft to the seller for the balance , deal completed and car handed over at the finance company offices for certainty, if you're paranoid.

AmyTadhg

Just keep it simply, if you view it & like it. Just tell him you know finance is outstanding.

Don't part with anything until he pays off the finance & you have proof the car is clear.

You've no way of knowing if the payments are in massive arrears or if a reposession order is against the car.

Like others said the contract will always state the vehicle does not become the property of the buyer until final payment is made, therefore not legally theirs to sell. so involving yourself in finance side of it is more time of yours wasted, as all is in owners name.

Assuming you want the recepit for it to delcare it as a business purchase/asset, so again easier to have the seller sort all out before you part any money & you get your vehicle & one nice clear receipt to show the purchase to keep down the vat & tax bills.

MarkN

bmwguy wrote: »

Think about it, who has 40k in cash and is willing to hand it over in these days of finance offers, low interest, warranties, dodgy sellers.

Depends on the car you want. If you are after something rare or currently not in stock with a dealer then you may not have an option.

I bought a car privately in March, got a bank draft, had the car checked, has a full BMW warranty (and can be extended by me mid 2017) and there's been no issues.

username?!

millington wrote: »

Depending on the car, you may not actually find anyone willing to spend that much on a private sale unless it's something special or ferociously cheap

bmwguy wrote: »

You will struggle unless the car is close to 50k from a reputable dealer. Think about it, who has 40k in cash and is willing to hand it over in these days of finance offers, low interest, warranties, dodgy sellers.

It is something special and not a run of the mill 2014+ diesel car that can be found ten fold in a dealership.

I do agree it will take longer to sell and I'm prepared for that but my last car not too dissimilar sold in 2 days. Its just down to is there anyone looking for one at that moment and time.

MarkN wrote: »

Depends on the car you want. If you are after something rare or currently not in stock with a dealer then you may not have an option.

I bought a car privately in March, got a bank draft, had the car checked, has a full BMW warranty (and can be extended by me mid 2017) and there's been no issues.

Exactly, If you do all the correct checks, pretty much any issue can be avoided and 3rd party warranties are always an option.

grogi

bmwguy wrote: »

Think about it, who has 40k in cash and is willing to hand it over in these days of finance offers, low interest, warranties, dodgy sellers.

Many people.

bear1

Bigus wrote: »

Incorrect.
One bank Handed over to the finance company in the amount of balance owing with a receipt to prove finance clear and another draft to the seller for the balance , deal completed and car handed over at the finance company offices for certainty, if you're paranoid.

But who is the actual owner of the car? Finance is owing so surely the car belongs to the finance company until the last cent is paid.
Not saying you're wrong btw.

bmwguy

grogi wrote: »

Many people.

Many people have 40k, no arguments there but definitely not many people willing to pay 40k cash in a private sale.

At a guess, 5% of car sales in Ireland are even over 40k. Only Audi, Jag, Merc, BMW sell in any significant number over 40k. No Toyotas, Ford's, Hyundai, Kia, Peugeot, Renault, possibly the very odd VW high end might be 40k. Of these, again at a guess, 95% are financed.

So, if my guesses are right 5% of 5% of people are paying upfront for a 40k car.

That's 1 in every 400 purchases being a cash purchaser over 40k.

Of these select few, if 5% would consider buying from a private individual I would be surprised.

That's 1 sale in 8000 being over 40k, in cash, from a private seller.

Then the person needs to actually like the car which not everyone does and now your market to sell to is tiny.

Admittedly, the 5% figure was pulled out of my arse all the way through but I don't think I am too wrong.

I'd love to know what the car actually is but I don't think OP wants to tell. It might change my thoughts if it's something exotic