[buckethead]

looking for a new car and an alpina d3 caught my eye the seller lived a long way from me so i made a offer by email just to see if we where in the same ball park we were and a price agreed now when i speak to the seller on the phone

i ask if the cars on finance the answer back is yes then he said he wants me to pay him so he can settle his finance i say no i cant as i dont know you and you might not settle the finance and then he thinks ive messed him around is it legal to sell a car private while its still on the book he had not even phoned the fiinance company up so could have owed more than he was getting?

[Terrance28]

Yes he can sell the car if its still on finance. But I probably won't exchange the money with him personally, but to the bank that financed the vehicle. I would ask for us both to speak to a rep at his bank and let them know the arrangement and that you are purchasing the vehicle and would like the titile sent to you not him.

[buckethead]

thanks but thats in the usa not to shore about the uk/

[briers]

The car i recently bought was on finance.

I thought that i would be responsible for the finance as soon as i bought the car. Therefore, i insisted on the following.

We go into the bank together, i chaps the settlement payment to BMW Finance (in my case) and pay the seller the difference.

This is what happened. And i knew that as soon as that was done there was no come back on me.


Anyway, as it transpired, i could have just paid the seller the full asking price. A call to BMW Finance confirmed that the seller would be the only interested party for the finance settlement, something i didn't think would be the case.


Edit//
AFAIK it is illegal for a dealer/garage to sell a car with finance. But i believe the same rules don't apply to private sales. I think most people cannot settle the finance without selling the car. I'm just putting 2 and 2 together and hoping to get 4 but i reckon this is why BMW Finance told me they would only chase the Finance holder for the settlement payment. Someone correct me if i'm wrong. Despite what i was told, due to the amount the D3 is likely to cost i would DOUBLE CHECK all this yourself and to be safe, suggest the method i took which is to pay the seller the difference. Of course he needs to be flexible enough to give you a final settlement figure (can't think why he wouldn't).

BMW finance wouldn't tell me the figure but they would say yes or no to a figure i told them that the seller gave me.

[buckethead]

he said his settlement was hes private business and did not want me to have
his personal details because of id theft

[m1bjr]

Walk away if you are not happy.

[acerboo]

had similar case car was on bmw finance bmw told me i could pay the seller but if he did not pay bmw they would come after me for the money i paid bmw direct and gave him the difference

[m1bjr]

Indeed.
If the car is on finance, the onus is on the person taking the finance to settle the debt.

If the car is on HIRE PURCHASE, then title of the vehicle technically stays with the financier until the debt is settled in full.

Seems there is some confusion here, finance is just like a loan.
HP or some PP plans are a totally different ballgame.

[buckethead]

dont know what type of finance it was on all know
he had owned it 2years its 57 then telling me more about the bloke
who had it for its first 6 months how this dealer got this car on a special
order for the 1st owner rossiers is the dealers i think

its was cheap to cheap to be true

[Oli]

Just hpi the car and then you'll know. Then pay the finance company directly, and give the seller the difference, if there is any.

[northern monkey]

Very recently had the same dilemma myself. Found out the car was on BMW finance and was, understandably, nervous. Would probably has completed the deal but seller was over 100 miles away. Imagine my disapointment to find out the car is now on sale at a BMW main dealer at £4000 more!

[Oli]

Just to confirm Briers post above. The finance company will only pursue the person who has the loan out. However if they can't get anywhere they will take the vehicle that is financed, no matter who is in possession. This is when the thirds rule applies, if you have paid under a third of the total amount payable, and stop paying, they will just come and take the vehicle. After this amount of a third and they must get a court order.

Also another point to note, on a regulated agreement once you have paid half the total amount, you can just hand the vehicle back, which can be handy.

[BoBBoB]

Originally Posted by Oli

Also another point to note, on a regulated agreement once you have paid half the total amount, you can just hand the vehicle back, which can be handy.

Apologies to the OP, but I've heard about the above but was never able to find it in writing, what agreements does this apply to ?

[Oli]

Any regulated finance agreement - Its the halves and thirds rules,that are usually written down on the first page of the docs - SHould have been explained to you at the time of signing!

[Rob55]

Any time I have bought a car with os finance, I have paid a small deposit to secure the vehicle and then asked the seller to take out a personal loan to clear the finance himself, and once it is cleared he can give me a letter from the finance company to prove it has been cleared and then I give him the cash for the car. He then uses this to pay off the personal loan.

Simplez

[cdb]

Originally Posted by BoBBoB

Apologies to the OP, but I've heard about the above but was never able to find it in writing, what agreements does this apply to ?

check your finance agreement, they'll be a box under the heading Termination in the T&C's that gives a figure, which should be the money you must pay to be able to hand back..

This link may help..
http://forums.moneysavingexpert.com/...d.php?t=437346

it's ideal if you smack on the mileage as essentially after 2/3 years any car i have is worth nothing like what's owed.


on the original topic - seems the best answer if you want to go for the car is to pay the finance house the cash and the seller the rest.

[doughboy]

Originally Posted by m1bjr

Seems there is some confusion here, finance is just like a loan.
HP or some PP plans are a totally different ballgame.

If you take a straight loan (not secured on the vehicle) and buy a car, then the car isn't 'on finance' and won't show up as such on HPI because the car was effectively bought with the buyers own cash, albeit loaned to him.

The term 'on finance' (such that it will show on HPI) will always involve some type of secured finance (loan, hp, lease, whatever) where the car itself is in some way part of the security and/or where other parties have contractual rights over it.

[Vee]

Originally Posted by buckethead

he said his settlement was hes private business and did not want me to have
his personal details because of id theft

But it is ok for you to hand over thousands of pounds and trust him to pay the finance off ?
DO NOT pay for the car until you have confirmation from the finance co that it is clear. If the seller won't let you have details so that you can confirm yourself then walk.
The finance company WILL look to reposess the car from you if he defaults.

Does this idiot want to actually sell the car ?

[Oli]

Walk away

[m1bjr]

Originally Posted by Rob55

Any time I have bought a car with os finance, I have paid a small deposit to secure the vehicle and then asked the seller to take out a personal loan to clear the finance himself, and once it is cleared he can give me a letter from the finance company to prove it has been cleared and then I give him the cash for the car. He then uses this to pay off the personal loan.

Simplez

I bet he would be chuffed though, having paid more interest on top of a finance deal with its own interest

[disco 1969]

Just pay the finance off and give him the change ,if there is any!

[parapaul]

You need a proper HPI check to see if what he calls finance is something like HPI or simply a personal loan. If it's just a loan you've got no worries, it's a straightforward purchase.

If it's on HPI the ONLY safe way to do this is standing side by side at the bank counter.

You transfer most of the money to the HPI company to settle the finance, the the rest straight to his account.

If he's not happy to do that, he's either dumb or dodgy. Either way, walk away.