I am looking at a car. The seller has stated 'There is currently finance on the car which will be cleared before the car is collected.'
any advice on what documents I need to see to know that all is cleared and the car can indeed be legally sold with no comebacks. I presume also that I should not part with any money until such documents are available?
Thanks
JohnM
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John,
WALK AWAY!!!!!
Do not trust this man - I may be taking an unnecessarily cynical view here, but IMHO you are setting yourself for a fall.
If this guy is legit, then a notice from the finance company wouldn't go amiss, as long as you can phone them to confirm that there is no further money outstanding on the car.
Sadly, if this guy is pulling a flanker then you will lose both the car and the money that you have paid for it.
I am so sorry to be so negative John, but I have seen so many people get their fingers badly burnt in this way. I sincerely hope that it doesn't happen to you and wish you all the best in finding your next car.
Cheers
Rob
"Lord of Lard"
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Thanks Rob
I haven't made any commitment; just looking at what is a very good deal. I'm not even thinking 'It'll be alright' just investigating what I should be asking for before any money is even considered.
Thanks
JohnM
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Sorry John
Perhaps my post was a bit Private Fraser - "We're all doomed! Doomed I say!"
Good luck anyway
Cheers
Rob
"Lord of Lard"
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I agree with Rob in principle.
If it is a private individual, and he can clear the finance before the car is collected, then why has he not done so before offering it for sale?
If it is a dealer, why is he selling a car with finance outstanding on it? Surely he has the wherewithal to clear it up.
However, if you particularly wanted this car I suggest you do an HPI check and compare it with the finance details that the vendor gives you. Inspect the car, get its chassis number as well. There is a thread in technical advice that explains how to read a chassis number by year etc. With this advice you should be able to chew over all the facts.
If it sells whilst you are doing all this - remember it's a buyer's market.
H
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Hugo, I presume that the guy will be clearing the finance with funds from the buyer's cleared payment, i.e., he won't be releasing the car as soon as it's sold and the finance will be cleared during the delay before the car is collected.
Does anyone know if an HPI check reveals to whom the finance is owing? There are unlikely to be two companies with a claim over the car, but it's worth checking.
If so, do an HPI, and make a cheque out for the outstanding balance in favour of the finance company.
Get a receipt for the full amount, making clear how the money is apportioned.
Get confirmation from the finance company that they no longer have any claim over the car.
Or just walk away. This is a lot of hassle, although I don't think the guy is necessarily dishonest because a real crook would just not mention the finance and then shrug if you did bother to HPI the car. If the seller doesn't want to do it by the book, you must run though!
This is of course another reason to buy cars with an unsecured loan, rather than hire purchase, and if you're selling a car and you can get credit to clear the balance from the bank, it's worth doing so.
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I agree with DavidHM. Theres nothing wrong with owing money on a car, as long as it's been an honest declaration to the prospective buyer. It's when a seller sort of forgets to tell you, and you trust him and don't do an HPI check, and you lose the car and your money. Thats a crook.
It's more a case of if you want the slight bit of extra hassle. I would definately have to HPI check it, if it were me.
Good luck.
Reggie
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Thnaks to all who have commented.
Just to stir the pot a little, it is a Company (not a dealer) selling a 'Director's car privately'. In addition, the crashing depreciation on the car (the reason it is worth considering means that the selling price is likely to be considerably less than the finance owing (i'm surprised it was not a lease deal). In this case I would be writing a cheque/draft to no-one without seeing clear title cf they use my cheque to clear the finance and that's the last I see of any of it!!).
I would not be paying anything until I know the finacne is clear and then the car would be exchanged for payment. Would an HPI check (to establish only one interest) and confirmation from that Company that all is cleared be sufficient?
Thanks
JohnM
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