Buying a Car that has outstanding finance

andicole0

andicole0

andicole0

Soldato
Joined
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Grundisburgh
Who should pay it off?

The owner can't pay before selling, the buyer doesn't want to buy and trust the seller pays it off. The seller suggests the buyer pays the value less outstanding finance then the buyer pays off the finance and he then knows it's been paid.

Apart from 'walk away' what would you do?

Andi.
 
Whenever I have sold a car with finance outstanding I have always paid off over the phone then pass phone to buyer so the company can confirm.

Can he get a temporary overdraft/credit card to pay it off?

Dont be put off if he genuine seller...
 
Finance company own the car until funds have been cleared by them, ownership only transfers to current owner at that point and not a third party who may have paid.

The current owner is the finance company so the individual can't sell the car.

Started looking again.

Andi.
 
Urrrm...I dont think you have understood what they mean.

You can pay them over the phone, once they confirmed all payments have gone through you can then sign the v5 and get the keys?
 
Not sure how you can't understand this.

Say the car is £8,000 and has £6,000 owing on it. You go to the seller, and whilst he is there, you call the finance company and pay them £6,000. Give the seller £2,000 and get the V5 signed over to you.
 
[TW]Fox;22195397 said:
Buyer pays the finance company.
Click to expand...

im surprised that would work. the finance company would have a contract with the seller, the seller is obliged to pay them the payments.

if they take a payment from the buyer, the buyer isnt party to that particular agreement, so the money he sends isnt paying off the finance.

when we sold the GFs fiesta, i transferred the balance to her, she paid it off, got confirmation from the finance co, and then sold the car. her agreement actually forbid her from selling or even allowing a lien or right against the car.
 
[TW]Fox;22195397 said:
Buyer pays the finance company.
Click to expand...

This.

I sold my MG which had finance left on it, the day they picked it up we phoned the finance company, settled the finance that was remaining and then paid me the rest in cash.
 
when I sold mine the buyer gave me all the cash, drove the car away I went to the bank deposited it in , then paid off the finance. easy.
edit: then what ever was left was left in my account

I dont think there is a proper way to do it, just what ever your happy with, well both (buyer and seller) happy with.

bullit
 
Matt82 said:
im surprised that would work. the finance company would have a contract with the seller, the seller is obliged to pay them the payments.

if they take a payment from the buyer, the buyer isnt party to that particular agreement, so the money he sends isnt paying off the finance.
Click to expand...

The payment is made to the account the seller has with the finance company. It doesn't matter who makes that payment, its registered against that account.

For people who don't have the ability to just clear the finance before sellng it is the only way to go. Technically taking money from the buyer before clearing the finance is illegal - its not your car to sell until the owner says so!
 
bullit in head said:
when I sold mine the buyer gave me all the cash, drove the car away I went to the bank deposited it in , then paid off the finance. easy.
edit: then what ever was left was left in my account

I dont think there is a proper way to do it, just what ever your happy with, well both (buyer and seller) happy with.

bullit
Click to expand...


it's a good job you're honest then. if there was outstanding finance on a car i'd want to make fully sure that the finance had been paid off in full before I drove off. Would be very easy to pocket the cash, 'disappear' (move house a couple of times quickly) then the car you sold gets reposessed and your buyer is out of pocket and carless while you're quids in.
 
The last car I bought had a lot of finance owing on it. It owed about 7k more then I paid for the car so the seller paid off 7k and gave me the car. I then paid off the rest directly to the finance company.
 
[TW]Fox;22213084 said:
The payment is made to the account the seller has with the finance company. It doesn't matter who makes that payment, its registered against that account.

For people who don't have the ability to just clear the finance before sellng it is the only way to go. Technically taking money from the buyer before clearing the finance is illegal - its not your car to sell until the owner says so!
Click to expand...

I read her agreement, its was clear who the borrower and borrowee were etc and the borrowee being obliged to pay.

If it works different in practice then fantastic, ive only experienced it how I said above and I'm surprised they'd deviate from the agreements that much
 
Matt82 said:
I read her agreement, its was clear who the borrower and borrowee were etc and the borrowee being obliged to pay.
Click to expand...

I don't understand why you think this is relevent.

If I send a BACS transfer to your credit card companies account with your account number as the payment reference what do you think would happen?

a) That amount would be credited to your account
b) They'd reject it because I'm not you

Hint: It isn't b). It works the same way with finance.

If it works different in practice then fantastic, ive only experienced it how I said above and I'm surprised they'd deviate from the agreements that much
Click to expand...

Its not deviating from an agreement.
 
As per the above posts, they simply could not care less who pays the money - as the buyer all you need to be satisfied with is the amount outstanding, it has been fully cleared and the company no longer have an interest in it.

It really is that simple -in reality the seller takes on far more of a risk than you, lets say you've nicked a credit card or someones account - who do you think the finance company chase when tue payment is reversed?
 
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