Buying a car with outstanding finance

Shooter1

Thanks for all replies, making me feel nervous!!

The outstanding balance is £7800 and I’ve agreed to pay £7000.

Whilst I agree there are lots of cars out there, however the price / model are a good fit.

Will check to see if the loan can be transferred to my name.

I’ll be printing off the AA used car receipt template.

If the balance is paid off, are there any other issues?

Thanks

maxwell

Suggest you think very carefully about this, have a good read here.

Buying A Car With Outstanding Finance On It – HPI Blog

pinnocchio

Good, being nervous means you'll be careful.

So, just to be 100% clear......

You believe at this stage that the finance outstanding is £7800.

You're going to give him £7000 and he's going to add £800 to clear the finance?

As it's a four hour drive ask him to photograph all the finance paperwork and send it to you for you to review before agreeing the deal.

Once you have copies of that paperwork let's pick up again.

I WOULD NOT try to do the deal this Sunday personally, there's still too many issues to be confirmed.

Smiffy 2

Cannot be done unfortunately.

Shooter1

Thanks all, really good advice.

John7

Personally, I wouldn't touch this with a barge pole. There are too many unscrupulous people out there and you risk being £7k down and no car.

Is the seller the party that's forcing the deal to take place on a Sunday perchance? Urgent or rushed deals are usually a sign of a scam

Shooter1

No, he works away all week and only home on the weekend.

I’m thinking of going up next Friday to do the deal.

Is there any issue if I confirm with the finance company that it’s been paid off?

delanoster

How about:
1. The seller gets a private loan for £7000 and uses it to pay the car finance off.
2. You buy the car after confirming that the finance is cleared.
3. Seller uses the proceeds from the sale to payback the loan within 14 days thereby avoiding any interest.

This way your only concerns are those normally associated with buying a second hand car in a private sale, rather than potentially being scammed.

duncan159

A word of caution, when you speak to the Finance Co they will not discuss any aspect of the loan without authorization from the your seller (assuming the loan is in their name) due to DPA.
So to be clear no acknowledgement that you are settling the loan or even if it relates to the car you are purchasing.
Tread carefully!

pinnocchio

I hate to be a bit anal about this, but honestly get all the paperwork BEFORE you start making commitments.  I think you're getting ahead of yourself a little.