I’m looking to buy a car for my wife as her old one is knackered. I’ve found a car she likes on Autotrader.
The car ticks all the boxes and for what it is it is a great example as I’ve trawled through hundreds now (it’s a bit mind numbing to be honest).
I spoke to the owner and it all seemed to be ok other than it does have outstanding finance on it.
The owner declared this on the advert so they aren’t hiding it and they state that it will be paid off in full as soon as I pay them.
The outstanding balance of finance is worth 85% of the price they are asking… clearly they need to sell the car to settle the balance.
In my head I am a bit nervous around this. The obvious fear of paying out money and then the finance company coming to ask for more money on the outstanding balance as the old owner didn’t settle it.
If they state they will pay the balance off in full and provide me with confirmation when done that seems reasonable.. however if I went tomorrow, paid them the money and drove away for a period I am exposed where I am just waiting for their confirmation and ultimately it would then fall on me to pay if something went wrong.
It is a private seller so I would be going to their place of residence to buy it.
What do people think? Is this a complete no go?
12 comments
**Update: – [Starting from 2023](https://www.reddit.com/r/AskUK/comments/100l56v/happy_new_year_askuk_minor_sub_update/), we have updated our [subreddit rules](https://www.reddit.com/r/AskUK/about/rules/)**. Specifically;
– Don’t be a dick to each other
– Top-level responses must contain genuine efforts to answer the question
– This is a strictly no-politics subreddit
Please keep /r/AskUK a great subreddit by reporting posts and comments which break our rules.
*I am a bot, and this action was performed automatically. Please [contact the moderators of this subreddit](/message/compose/?to=/r/AskUK) if you have any questions or concerns.*
They don’t own the car until the finance is paid off, they can’t sell it to you. I wouldn’t touch it to be honest.
Do not touch that car with a ten foot barge pole. All you have to go on that the HP agreement will be cleared is the honour and promise of a stranger.
Best suggestion i have is to offer to pay the finance off directly, cutting out the vendor. If they don’t get your money, they can’t rip you off.
That said, and as others have already said, don’t touch it.
Wouldn’t touch it, can they even sell it if they’re not the registered owner. That would be the finance company.
If you want to go ahead at least speak to the finance company to check of their aware their car is being sold
Forget it.
Look for something esle.
Why can’t they take a loan out- pay car off then pay back loan once you have paid.
It’s fine, I’ve bought cars where the seller clears the finance on the phone whilst you are standing next to them and they passed the phone to verify it, plus showed proof via an email after the call.
Not everyone is out to scam you, use your brain and you’ll be fine.
It’s perfectly normal, you’d pay the finance company and deal with them directly then the car is yours
We have done this. We sold a car that had finance. We sat in our kitchen with the buyer & phoned the finance company, they transferred the outstanding balance for settlement direct to the lender, who confirmed by email. They then transferred the balance to us. Deal done. Not much different to buying any car, just an extra step.
If you buy this, the vendor may stop paying th HP agreement and the lender can then recover the car from you.
They don’t own the car (in the normal sense) if they still have finance on it, so can’t sell it.