Looking at a car with outstanding finance

[lennyd]

My brother in law is looking at buying a car from a private seller in Scotland.

They've said there is outstanding finance on it and they'll clear it once sold etc....

Is there anyway of ensuring this if he buys it or where does he stand? Obviously don't want a 20k+ motor being reclaimed by finance company

 

[kippermoon]

the best way is while your there get him to ring the finance company and you pay the money with debit card then pay the seller the balance,i wouldn't do the deal otherwise

 

[mcmurray]

As above.

Once he views it and is happy with it, phone the finance company directly and pay it off over the phone. Then pay the remaining balance (if there is any) to the seller.

Done it myself before. Bit wary at first but worked out fine.

 

[Odhran]

The fact it’s in Scotland would probably put me off more than the fact there’s finance outstanding on it.

 

[chris_b]

As said the finance thing is no issue and very common, the seller can arrange for you to have access to gain permission to the account and you can deal direct with them and then the balance to the seller. Simples

 

[AMG]

As said the finance thing is no issue and very common, the seller can arrange for you to have access to gain permission to the account and you can deal direct with them and then the balance to the seller. Simples

That's what i did when i bought the A4. The seller didn't realise that it could be done that way, and had assured me it would be paid off straight away. I'd say he was genuine, but i wasn't going to take that chance.

 

[Cartunes]

Can I sell a car with outstanding finance?

 

[CharlySkunkWeed]

I assume this is still the case when buying a car with outstanding finance ? Seller has the settlement figure. So we just pay it to the company for him on the day and give him the remainder ?
Anything to be wary off ?

 

[zafturbo]

I assume this is still the case when buying a car with outstanding finance ? Seller has the settlement figure. So we just pay it to the company for him on the day and give him the remainder ?
Anything to be wary off ?

Sorry missed you,s at weekend ,if your free during the week give me a shout if needs be .

 

[Chris_702]

I assume this is still the case when buying a car with outstanding finance ? Seller has the settlement figure. So we just pay it to the company for him on the day and give him the remainder ?
Anything to be wary off ?

Yes make sure you pay the finance company directly. Pay the seller any balance and you are good to go.

 

[CharlySkunkWeed]

So ran this idea past the bank yesterday, at the counter. They said they won't pay a third party. So the seller would have to pay the finance then we pay him.
He's happy to do that, he has the money but doesn't want to pay it off till he's sure he has a buyer. He's genuine enough, sent me the PDF of his settlement agreement etc. with all his details on it.
Now the bank are saying they won't even let us pay the guy at all as we could pay him and if he waits 24hrs for the money to clear before giving us the car he could do a runner.
But he said he'll take the chance and let us take the car if we leave something like a drivers licence for example (So he has it if something goes wrong)
We phoned the bank last thing yesterday to clarify their view and they pretty much said they won't do it in case it's a con.

Calling into the bank today again to have it out with them. Had anyone had these issues before ?

We're hoping to transfer him £5k deposit (So he knows we're definitely buying) then once we see he's paid the finance off , transfer him the remainder. We do the paperwork, leave a drivers licence, he hands us the keys , we drive off in the car, he sweats it out 24hrs till our transfer clears, then we go back for the drivers licence.

He said he's happy with that , we're happy with that. But the bank seems dead against it !

 

[mark19]

Tbh reading that loads like a scammers dream. You pay me 5k deposit. He vanishes.

But could be fine. Just my cents I wouldn't be doing it at all

 

[CharlySkunkWeed]

Tbh reading that loads like a scammers dream. You pay me 5k deposit. He vanishes.

But could be fine. Just my cents I wouldn't be doing it at all

This will all be done at his house, with us driving away in the car. Sure if we paid his finance off in his house his could pull the same stunt ? (Not that there's a stunt to pull as its been advised in the posts above)
Either way we would be giving him 20k+ , wether paying his finance off for him, or paying him the full amout , or 5k first then the rest.

 

[mark19]

Ah I got the wrong end of the stick!!!
Tbh I'm still under the impression if you even have to ask about it. Then avoid it. But maybe I'm too safe.
But good luck either way

 

[CharlySkunkWeed]

We only asked the bank in case there was a limit to how much we could spend (which has happened before) but they seem to be overly cautious IMO
I mean how does everyone else buy a 2nd hand car ?

 

[Terry]

If the money is in your account to pay for the car, I’d just ring the number on the statement and pay the settlement figure directly to the company using your debit card, then transfer him the balance. It’s the most straight forward way and you’re in charge of whether the finance is paid or not.

I understand banks deal with people getting conned every day but if you’ve done your due diligence, checked he’s the rightful owner etc, then pay by the above way and get a simple receipt drawn up, copies of IDs taken, should all be fine.

From what you’ve said, it sounds like that bank would never want anyone to buy a car privately.

Absolute worst case scenario you could get someone to broker the deal but you’d have to pay them. And then likely write some type of indemnity that they won’t be held to account for any problems or warranty issues. But it really shouldn’t be necessary.

 

[CharlySkunkWeed]

If the money is in your account to pay for the car, I’d just ring the number on the statement and pay the settlement figure directly to the company using your debit card, then transfer him the balance. It’s the most straight forward way and you’re in charge of whether the finance is paid or not.

I understand banks deal with people getting conned every day but if you’ve done your due diligence, checked he’s the rightful owner etc, then pay by the above way and get a simple receipt drawn up, copies of IDs taken, should all be fine.

From what you’ve said, it sounds like that bank would never want anyone to buy a car privately.

Absolute worst case scenario you could get someone to broker the deal but you’d have to pay them. And then likely write some type of indemnity that they won’t be held to account for any problems or warranty issues. But it really shouldn’t be necessary.

They pretty much said to go to a car dealer !
I think the issue is that it's over 20k so we have to do a transfer which they won't do for a 3rd party. But once we then explained that if that's the case he'd pay it off and we'd be paying him directly they still said no basically.
The seller said he'd do what u said to do.
Hopefully when we call in to the bank later someone will be a bit more helpful.

 

[Lyons]

Do you need to involve the bank? Can you not just transfer online to him? He sounds like he’s being 100% and trying to work with you.

 

[Terry]

They pretty much said to go to a car dealer !
I think the issue is that it's over 20k so we have to do a transfer which they won't do for a 3rd party. But once we then explained that if that's the case he'd pay it off and we'd be paying him directly they still said no basically.
The seller said he'd do what u said to do.
Hopefully when we call in to the bank later someone will be a bit more helpful.

I could be wrong but you should be able to use a debit card to pay the settlement to the finance company, at worst you might get a referral for you to confirm that you are making the transaction. Then the remaining balance to the seller should be quite minimal and easy to transfer I imagine?

Sounds like the bank are trying to be cautious and protect you but also confusing matters a bit. That’s why I’ve mentioned if the money is in your account then the bank can’t really do much about it, it would just be if it was a car loan or something they were giving you that they may have more pull.

 

[collyirwin11]

I have done this also, I paid the finance company directly to clear it, and then I knew it was done and the car was clear for me owning it. It can be daunting, but it is the most straight forward way to go. I don’t know why he wouldn't clear it himself though if the money is sitting there to do so. At least that way, someone is checking a car with no outstanding finance, and is happy to transfer money directly between people.

 

[CharlySkunkWeed]

Do you need to involve the bank? Can you not just transfer online to him? He sounds like he’s being 100% and trying to work with you.

Will double check with them later but i think it was to do with the amount. If we can send him the full amount by card/transfer without telling them , we will. (If the car is ok obviously)

 

[johnm]

Sounds like the bank are being planks purely for the sake of it.
You've done your homework on it, ask the bank if you have an upper limit on your debit card when paying for transactions. If they have imposed them inform them you will be going over that limit for a single payment and they will need to comply.

It's your money in your account, they need to comply with it.

Will double check with them later but i think it was to do with the amount. If we can send him the full amount by card/transfer without telling them , we will. (If the car is ok obviously)

You dont need to tell them what your buying. As said, its your money. They have no input.

 

[CharlySkunkWeed]

I could be wrong but you should be able to use a debit card to pay the settlement to the finance company, at worst you might get a referral for you to confirm that you are making the transaction. Then the remaining balance to the seller should be quite minimal and easy to transfer I imagine?

Sounds like the bank are trying to be cautious and protect you but also confusing matters a bit. That’s why I’ve mentioned if the money is in your account then the bank can’t really do much about it, it would just be if it was a car loan or something they were giving you that they may have more pull.

I have done this also, I paid the finance company directly to clear it, and then I knew it was done and the car was clear for me owning it. It can be daunting, but it is the most straight forward way to go. I don’t know why he wouldn't clear it himself though if the money is sitting there to do so. At least that way, someone is checking a car with no outstanding finance, and is happy to transfer money directly between people.

I think the bank thinks we'd be sending the money without getting the car there and then.
But we wouldn't be leaving without it !
He owes the full asking price (24k) so i think thats where our problem starts as (I think) the bank said anything over 20k has to be a transfer and they won't pay a 3rd party.
He doesn't want to pay the finance off in case the car doesn't sell , he'll be stuck with it. He said once he's sure he has a buyer he'll pay it off straight away.

 

[Terry]

I think the bank thinks we'd be sending the money without getting the car there and then.
But we wouldn't be leaving without it !
He owes the full asking price (24k) so i think thats where our problem starts as (I think) the bank said anything over 20k has to be a transfer and they won't pay a 3rd party.
He doesn't want to pay the finance off in case the car doesn't sell , he'll be stuck with it. He said once he's sure he has a buyer he'll pay it off straight away.

I’m with you a bit more now. If it was me then I’d let him lay it off, ask for confirmation and get him to allow you to confirm with the lender and maybe get a copy of the settlement and that the vehicle is now clear.

Then just transfer him through online banking, if there are any limits (like over 20k) then send two lots of 12k or 2x 10k and 4K. You’s could even have it coming from both of your accounts to his.

 

[johnm]

If over 20k has to be a transfer, make two payments, one at £19k the other at £5k.