Been to look at an N/A - dodgy seller?

Just been to somewhere near London to look at a black SZ reg. number K102 OYJ. The car is a very tidy 5spd black. Couple of trim problems - the passenger grab handle has come off but is in the glove box, and for some odd reason the bit of plastic behind the steering wheel is gone - the bit that covers the sort of 'boss' part of the oem (non-airbag wheel).

Aaaanyway.. here's the intesting part

We just got back and did a HPI check and it says there is outstanding finance on the vehicle.

The guy selling the car seemed to know it well as though it was his car, but the tax ran out four months ago, and it was on the driveway of a mates house, apparently because this guys driveway is being worked on. Hmmm.

So we never saw where the guy lives. There's a hell of a lot of documentation, V5, service history, including Japanese stuff, and the car looks to be in great shape, but alarm bells are ringing now.

I suppose it is sometimes normal for someone to sell a car and then pay off the finance with that money, is it?

Thoughts, anyone?

HPI Check attached..

HPI.pdf

Carlos,

when I bought my Soop it had finance outstanding, the seller was open and up front about the fact. I got him to get a finance settlement figure, and let me know how much it was, when I collected the car I paid the finance off over the phone, and paid the remainder in cash.

I got a receipt for the car from the seller which stated both the cash amount and the finance settlement, and I also got a receipt from the finance company by return post.

The problem with paying for the car and getting the seller to subsequently pay off the finance is that it requires a lot of trust between 2 people who probably have only met once. Who's to say that the seller won't take the cash and run, and leave you with a vehicle with outstanding finance, yeah they will have the bad credit, but their loan is secured on your car. so you lose out too.

In my opinion if the seller hasn't mentioned outstanding finance to you, then they might be trying to pull a fast one, be very careful, and if you know about finance don't hand over the full amount in cash, unless you get a signed receipt saying that the finance will be settled. Though I'm not sure even that is any security for the car, any creditors will take the car until the situation is resolved.

Listen to your gut mate - take care

Mike

When you checked over the vehicle, did the VIN and plate match the V5? I notice the credit check doesn't include the VIN.

You can almost smell the paranoia here can't you

Mike

Too many things dont sound right. I would walk away, there will be another.

Why does it matter if the current owner owes finance on the car? It's his problem, isn't it?

Maybe it's different if you are a motor trader but I believe if you are a private individual then nobody can take the car off you, or anything like that, if the previous owner owes money on it.

Jake,

The big problem is that if the previous owner owes finance on a vehicle, it is legally not their vehicle to sell, therefore you have no claim on the vehicle afterwards.

Or at the very least it is going to get very messy.

Technically all finance should be settled prior to the sale.

Mike

if the previous owner owes finance on a vehicle, it is legally not their vehicle to sell

Nice wee write up from the autotrader web site

Types of finance

There are two main types of finance available to used car buyers - we've looked into the pros and cons of each.

1. Personal loans

Obtaining an unsecured personal loan has never been easier. There are literally thousands of financial houses out there offering attractive deals, making shopping around vital if you want to save money. Most private buyers find them ideal, as they;

* Are easy to obtain. Often, a phone call or internet session is all that's needed.

* Mean you own the car immediately, unlike other schemes.

However, personal loans are usually subject to higher levels of interest than HP schemes - especially for smaller loans - and impose a maximum limit, usually around £15,000. If your potential car is expensive, you'll have to take another route. Such as…

2. Hire Purchase

The traditional route into a used car, hire purchase schemes remains popular. Unlike personal loans, you don't actually own the car until the final payment has been made, meaning that any missed payments could see you lose your car. But although this sounds dramatic, there are benefits too;

* Simplicity, as HP schemes are sometimes easier to obtain than personal loans, especially if you have a less-than perfect credit history.

* Interest rates are lower and you can also borrow far higher amounts compared with personal loans.

As long as you're sure you can afford the repayments, hire purchase schemes offer reasonable value, explaining their continued strength in the face of newer alternatives.

Well it wouldn't be a personal loan would it? If it came up on the HPI... it would have to be secured on the car in some way?

So basicly, under a HP agreement the original seller of the car still owns the car if finance is still owed by the guy trying to sell the car now.

Which I guess means it's not his to sell until all finance is paid for?

Basically what his HPi states is there is finance secured on the car. The finance would have to be cleared off before any new owner can have legal clear title. For instance you can have V5 but if last owner has not cleared off outstanding finance then if you have a shunt and it's written off them the previous owners finance company are settled and you are seriously out of pocket. It's buyer beware I'm afraid. It's a civil matter and not a matter for the police in that instance. so basically if your buying talk to the owner, get his finance company details, contact them and send them the cheque direct with receipt from both. Does the sellers name tie in with finance company etc.Has he shown you ID. Sounds like a dealer to me. Good luck

I would walk away from this one mate. Not worth the hassle. he hasn't been upfront with you. Plenty more cars out there. Walk.

So basicly, under a HP agreement the original seller of the car still owns the car if finance is still owed by the guy trying to sell the car now.

its actually the finance company that 'owns' the car

they paid the dealer, they 'own' the car until the debt is cleared

if you buy a car from a dealer on HP, and go back to cancel over 30 days later - they will tell you that the finance company has 'paid out' and it is no longer between them and you, but between the finance company and you

This is why I ALWAYS take out a personal loans on a everything. Don't like the idea that someone else legally owns it. Usually better deals too!

Had a chat with both the financer and the chap himself and we're going to buy it and pay the finance off over the phone there and then.

Why are you buying an NA anyway?

Why are you buying an NA anyway?

He's not. Emma is...Supralookin.

Oh.

Never heard of her. It's not that BubblyBozo renamed is it? Nah, can't be - not even our Carl0s would do something that silly.

No - http://www.mkivsupra.net/vbb/showthread.php?t=48728

Oh.

Never heard of her. It's not that BubblyBozo renamed is it? Nah, can't be - not even our Carl0s would do something that silly.

yes mate it's Supralookin/Bozo/Bomex989/Emma/Lee/whatever.

The girl who took (How many?) attempts to pass her test? How long has she had her license now?

Do you think a Supra is a good idea for her?

The girl who took (How many?) attempts to pass her test? How long has she had her license now?

Do you think a Supra is a good idea for her?

But she will get cheaper insurance than a guy the same ..life is fair huh

I still prefer to be a man thanks.

I still prefer to be a man thanks.

With your there ..but would you not like to try it for a day ...namely insurance renewal day ?

Forget it Mig, I'm not falling for that one again :blush: