buncefm
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| posted on 9/7/09 at 04:16 PM |
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Buying a vehicle that has outstanding finance
has anyone had any experience of buying a vehicle with outstanding finance on it? how do you go about it?
i'm not buying, i'm selling a van which has finance left on it but people have done HPI checks and asked how it works as they aren't
comfortable handing over the money knowing theres outstanding finance on the vehicle.
due to the current climate i'm having to sell the van for less than i owe and then make up the remaining balnce.
any imput welcome.
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Jon Ison
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| posted on 9/7/09 at 04:23 PM |
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As a buyer not sure I would be happy until I had word from the finance company it was clear.
I would be comfortable maybe if I paid you then was present whilst you wired the money over (settlement fee) in my presence with confirmation back it
was clear.
Have you spoke to the finance company, got a settelment figure ? If not it may be a little less than you think if settled early ?
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Charlie_Zetec
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| posted on 9/7/09 at 04:25 PM |
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I've never sold a vehicle with outstanding finance on it, but I have assisted in the purchase of one before on behalf of a friend.
As part of the sale process, a receipt is usually exchanged upon completion. When I purchased the vehicle, I had it written into the contract that
the vehicle was purchased with outstanding finance, under the proviso that the seller assumes all responsibility for remaining monies owed, and upon
sale of said vehicle, monies exchanged would be used to clear or counter the outstanding debt.
If you have it in black and white, then there's no comeback and both buyer and seller are clear on which party the debt lies with
(indefinately).
Apart from that, not much else I can personally recommend I'm afraid!
Artificial intelligence is no match for natural stupidity!
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r1_pete
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| posted on 9/7/09 at 04:42 PM |
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You need to read the terms of the finance agreement, in most cases you do not own the vehicle until the finance is settled.
So you could be in a position where you are not entitled to sell it.
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Surrey Dave
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| posted on 9/7/09 at 05:05 PM |
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Yep
I bought a car once where the guy owed more to the finance than the value of the car, the only way I was happy was to meet him at on office of the
finance company and go with him to pay it off and get the receipt.
Thats not easy if there is not a local office.
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GrumpyOne
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| posted on 9/7/09 at 05:06 PM |
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^^^ I concur, car is not yours until the fianace company is paid in full. If you buy a car with outstanding finance and the seller defaults then the
car can be repossesed from you and you have no legal right to it.
In Scotland the finance company can't take the car back without a court order if you have paid more than a third. In England I think it is a
half (I could be wrong though).
My wife is very understanding, she understands that if I am in the garage I am not in the house annoying her.
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SteveWalker
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| posted on 9/7/09 at 05:08 PM |
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I would think that the best bet is to speak to the finance company about it and see what they can do to help you. Failing that, can you borrow any
money from anywhere (even on the dreaded credit card if necessary) to pay it off, as you'd be paying the second loan back very quickly and it
shouldn't cost you too much.
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zilspeed
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| posted on 9/7/09 at 06:05 PM |
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Is the van on hp ?
Have you paid more than half ?
If you can answer yes to both of these questions, there could be a perfectly legitimate way out of this predicament.
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Fozzie
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| posted on 9/7/09 at 08:10 PM |
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I would be very surprised if you were in the position to sell if finance was still owing.
Hence the origins of firms such as HPI.
Read your finance agreement thoroughly, and call the finance company to verify the position.
Fozzie
IIRC the laws are slightly different in Scotland......
'Racing is Life!...anything before or after is just waiting'....Steve McQueen
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GrumpyOne
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| posted on 9/7/09 at 08:52 PM |
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quote:
Originally posted by Fozzie
I would be very surprised if you were in the position to sell if finance was still owing.
Hence the origins of firms such as HPI.
Read your finance agreement thoroughly, and call the finance company to verify the position.
Fozzie
IIRC the laws are slightly different in Scotland......
Laws are indeed slightly different in Scotland but the finance act is the same, you can sell the van / car as long as the HP is paid in full straight
away. You can also legally hand back the vehicle to the HP company if you have paid more than 50% with no redress and no black marks on your credit
rating. Which might be a better option than selling it for less than you owe.
Problems start when someone sells a vehicle that has finance on it then forgets to pay HP company. HP company still owns the vehicle and can legally
reposses it from whoever has bought it. Hense companies like HPI.
Cheers
Colin
[Edited on 9/7/09 by GrumpyOne]
My wife is very understanding, she understands that if I am in the garage I am not in the house annoying her.
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Fozzie
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| posted on 9/7/09 at 09:10 PM |
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quote:
Originally posted by GrumpyOne
quote:
Originally posted by Fozzie
I would be very surprised if you were in the position to sell if finance was still owing.
Hence the origins of firms such as HPI.
Read your finance agreement thoroughly, and call the finance company to verify the position.
Fozzie
IIRC the laws are slightly different in Scotland......
Laws are indeed slightly different in Scotland but the finance act is the same, you can sell the van / car as long as the HP is paid in full straight
away. You can also legally hand back the vehicle to the HP company if you have paid more than 50% with no redress and no black marks on your credit
rating. Which might be a better option than selling it for less than you owe.
Problems start when someone sells a vehicle that has finance on it then forgets to pay HP company. HP company still owns the vehicle and can legally
reposses it from whoever has bought it. Hense companies like HPI.
Cheers
Colin
[Edited on 9/7/09 by GrumpyOne]
Excellent post GrumpyOne ! 
A clear, concise explanation 
Fozzie
'Racing is Life!...anything before or after is just waiting'....Steve McQueen
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mark chandler
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| posted on 9/7/09 at 10:58 PM |
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The last car I purchased had finance on it, I got the seller to get a full settlement figure then paid the finanace off by bank transfer from my
account and paid him the difference.
I was then satisfied that the car was clean, as got a letter of confirmation from the finanace company.
Regards Mark
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ashg
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| posted on 9/7/09 at 11:34 PM |
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walk away there is allways another one.
Anything With Tits or Wheels Will cost you MONEY!!
Haynes Roadster (Finished)
Exocet (Finished & Sold)
New Project (Started)
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Staple balls
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| posted on 9/7/09 at 11:45 PM |
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quote:
Originally posted by ashg
walk away there is allways another one.
I imagine walking away from selling his own vehicle isn't really an option.
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buncefm
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| posted on 10/7/09 at 07:09 AM |
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thanks for all the imput guys i'm going to speak to finance company today and ask what they thinks is the best option, also gonna look in to the
handing back if ive paid over half.
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DarrenW
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| posted on 10/7/09 at 08:38 AM |
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My M3 was bought from a guy who had finance on it. Like a fool i took his word that he was using money to clear the finance. He didnt - instead used
the cash for his business. Fast forward 18 months - imagine surprise when i tried to sell and failed as HPI revealed finance was still owed. I was
incredibly lucky that i was able to get in touch with last owner and he settles the finance over the next few weeks, very stressful time and could
have been a whole load worse.
My understanding is that it doesnt matter what is written on the reciept, the finance company still has an interest in the car - end of.
Personally i would walk away from a purchase with outstanding finance. Its a catch 22 situation. The only way i may do it is if the seller was able to
show the settlement paperwork, purchase price was more than settlement, i then settled the finance and recieved confirmation immediately from finance
company. Probs wouldnt hand over the balance of purchase price to seller until finance company letter of settlement was recieved.
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