Buying a car that is subject to a finance agreement?

[feenster99]

Hi all,
Has anyone ever bought a car from a private seller, that has a finance agreement attached to it (ie., the seller bought it on finance and hasn't finished paying it off)?

I understand that the finance company are the legal owner of the car, and that it has the potential if not organised right to lose me the car and my money. I wondered what the best way of going about the sale was? There are a few options:

1) Get seller to get a short term loan and pay it off. I then pay the seller directly (preferred but unlikely to happen)
2) I pay the remaining finance balance direct to the finance company by bank draft, and the rest in cash to the seller
3) I pay the seller directly. I then watch him send off a cheque to the finance company paying it off (most risky!)

What other options are there? Anyone done this before - how did you go about it?

Matt

 

[feenster99]

Humm, thanks chaps. The car is a (BMW) Mini Cooper, so it *shouldn't* be in the negative equity thing, as he has only had it a few months.

I feel the same as you have already said that it is dodgy - however, the car is the ideal spec. for me, so I would be keen to find a way around it. Would you put down say £100 deposit on the condition that the rest of the finance is paid off (with proof) with the rest to follow to him directly upon receipt of this?

Matt

 

[feenster99]

OK cheers, ill bear all this in mind. I am having the car inspected tomorrow, so should have a decent picture of how to go forward or walk away.

Cheers,
Matt

 

[feenster99]

Well, all sorted. The chap is going to pay off the finance first, get a confirmation fax from the credit company, do me a HPI check and then ill pay him direct.

Just need to sell my Megane Coupé now!

Cheers,
Matt