I've agreed to buy a secondhand car from a private seller and have given him a cheque for £500 deposit. I'll run an HPI check on the car, but he told me he has £21k outstanding finance on it. This is the first time I've bought when there is o/s finance, and would welcome advice on how to proceed.
I'm not at all keen simply to pay him the balance - what guarantee do I have that he will use it to pay off the finance instead of vanishing with my money? Presumably, the car remains the property of the finance company until the loan is settled.
Could I pay the finance company directly? This way, I know there would be no outstanding finance, but I would be loathe to do this without getting the keys to the car at the same time - how do I know the seller isn't going to vanish with the car?
I'm sure there is a smooth and safe process for situations like this, but I can't visualise it.
|
>>I'm sure there is a smooth and safe process for situations like this, but I can't visualise it.
Yes, run away!, and find a car that hasn't got outstanding finance on it! Effectively, the car isn't his to sell.
Number_Cruncher
|
Yes run away! and find a car that hasn't got outstanding finance on it! Effectively the car isn't his to sell.
Isn't that a bit drastic? Surely there must be many genuine and honest sellers who took out finance when they bought the car and still have an outstanding balance, and in all good faith they will want to use the proceeds of the sale to settle the balance?>>
|
So why is he selling?
Offer to pay the finance company direct and see the reaction.
|
So why is he selling?
He needs a bigger car.
Offer to pay the finance company direct and see the reaction.
He and I both thought of this simultaneously.
|
|
|
|
I did this with a GT3 a couple of years back. The seller needs to get a settlement figure form the finance house. He also needs to get the account details of the finance house.
Go with him to the bank in the car that you're buying. Go together into the bank. Transfer funds to the finance house and the seller as appropriate by electronic transfer. That way both parties can see that everything has been settled. Leave in the car that you've just bought.
--
I read often, only post occasionally
|
|
|
|
|
"Surely there must be many genuine and honest sellers who took out finance when they bought the car and still have an outstanding balance, and in all good faith they will want to use the proceeds of the sale to settle the balance?"
Yes, there are - but your problem is that you don't know whether this guy is one of them or not.
Surely if there is £21k outstanding, we're talking about a fairly expensive car. I would have thought that at this end of the market you're better off going to a dealer and getting a warranty with it. You'll pay more but buy peace of mind.
|
|
Bascially you can pay the finance co directly. This is the sort of thing that trader's do regularly. I wouldn't particularly advise a private buyer to go this route though.
|
Bascially you can pay the finance co directly. This is the sort of thing that trader's do regularly. I wouldn't particularly advise a private buyer to go this route though.
The advice above from Spikeyhead seems sound, would you agree? ("The seller needs to get a settlement figure form the finance house. He also needs to get the account details of the finance house. Go with him to the bank in the car that you're buying. Go together into the bank. Transfer funds to the finance house and the seller as appropriate by electronic transfer. That way both parties can see that everything has been settled. Leave in the car that you've just bought.")
|
|
|
|
Surely if there is £21k outstanding we're talking about a fairly expensive car. I would have thought that at this end of the market you're better off going to a dealer and getting a warranty with it. You'll pay more but buy peace of mind.
It's a 4-month old top-of-the-range Grand Picasso Exclusive 2.0HDi Auto, with every conceivable extra exc. leather. Retail is £28.6k. It comes with the balance of the Citroen warranty (2y 8m)
|
Tread careful !
Its only 4 months old ! he just realised he needs a bigger car?
You could snap up a decent bargain; you could lose a lot of money!
Better off at a quality sales site and negotiate on a price with warranty and peace of mind?
Akll depends on how much you want to risk your money !
|
How fast can you run?
Picasso? £21K outstanding. Someone here has taken leave of their senses.
|
You can spec up a Grand Picasso to £29k+ apparently, and even with £3k discount at drivethedeal.com it works out at £26,500.
Or you could get a C8 Exclusive with leather and privacy glass but no navigation, plus a TomTom 910, and still come in at £21k.
It's a no brainer I'm sorry...
|
It certainly is a no-brainer.
Don't buy anything french for that money
Buy a new or nearly Galaxy Ghia TDI instead!
|
|
You must be mad you can get a new one for about the same price and no risks, its new and has one name in the book YOURS.
|
|
|
|
It's a 4-month old top-of-the-range Grand Picasso Exclusive 2.0HDi Auto with every conceivable extra exc. leather. Retail is £28.6k. It comes with the balance of the Citroen warranty (2y 8m)
You can get one for less than that from a dealer:
www.creditplus.co.uk/product.php?reg=EJ56KNH&id=25...O
|
And even that one is more than the new price from drivethedeal.com - it just hasn't got the comedy list of optional extras that won't add any value to the car (plus you get 3 years' interest free).
Personally though, I'd get an S-Max 2.0 Titanium or a Galaxy (bigger and cheaper, not quite as pretty) if you need more space.
|
"It comes with the balance of the Citroen warranty (2y 8m)"
Could the first 4 months of this warranty have been well used? i.e. it's a lemon he's trying to get rid of?
|
|
|
|
|
|
As others have pointed out, this seems an unnecessarily risky purchase - even though there may be nothing 'dodgy' about the seller whatsoever.
You have a huge choice of vehicles, but it looks like you got caught up in a 'must have this one' frame of mind. I'd take a step back and re-consider your options.
You paid the deposit by cheque, so there may still be time to put a 'stop' on it - there may be legal implications in doing this, but I doubt the seller would pursue it.....
|
what kind of person would roll up at someones house, get told its chuckied up to the hilt ,leave a £500 deposit ,then come on a forum and ask questions while also saying i will get it hpi"d tomorrow?
the juries out--------
|
1. Stop the cheque
2. Ring the seller, apologise.
3. Open drink of choice, sit down, thank lucky stars.
4. Go round the all the localish dealers who sell the model of choice, and negotiate on their demo/pre-reg/"management" cars.
5. Come back on here and promise not to pull your stunt again.
|
|
|
|
