Paul Posted January 9, 2008 Share Posted January 9, 2008 I'm considering buying a car privately and the owner has said that there is outstanding finance, he is selling to settle this up btw. Now, I'm not silly enough to just give him cash and trust him to pay off as the finance Co. will still retain an interest in it if he don't pay it off. My question is how do I go about this, the total outstanding is a 'little more' than the price of the car, I would get evidence of this but would it be safe for me to contact his finance co. and pay them direct? Any help appreciated. Quote Link to comment Share on other sites More sharing options...
Gaz Walker Posted January 9, 2008 Share Posted January 9, 2008 My question is how do I go about this, the total outstanding is a 'little more' than the price of the car, I would get evidence of this but would it be safe for me to contact his finance co. and pay them direct? You can do that yep and take confirmation to him/call them when you go to collect the car... Quote Link to comment Share on other sites More sharing options...
mr lover Posted January 9, 2008 Share Posted January 9, 2008 can you pay off the finance and give him the balance Quote Link to comment Share on other sites More sharing options...
Paul Posted January 9, 2008 Author Share Posted January 9, 2008 The amount for the car is a 'little' less than the outstanding finance so I'm guessing I'd have to check with the finance co. that they will have no interest in it if I pay the majority off? To make it clearer, the car is less than the amount outstanding. Isn't it awkward though, I would normally pay for the car when picking it up but instead I clear his finance, or the majority of it, and then go a pick up hoping he hasn't sold it on or done a runner? Quote Link to comment Share on other sites More sharing options...
Scooter Posted January 9, 2008 Share Posted January 9, 2008 the car isn't his to sell basically, and like you say its risky for you. If he can get finance for a car he should be able to get finance to pay off the finance company if you see what i mean? Absolute minimum before i went any further with this would be to get him to pay off the 'Little' extra.......... Quote Link to comment Share on other sites More sharing options...
tomgeer Posted January 9, 2008 Share Posted January 9, 2008 the car isn't his to sell basically, and like you say its risky for you. If he can get finance for a car he should be able to get finance to pay off the finance company if you see what i mean? Absolute minimum before i went any further with this would be to get him to pay off the 'Little' extra.......... Me too, Once the little extra is paid off you can settle the remaining balance with the company and there is no more finance on the car, everybody wins Quote Link to comment Share on other sites More sharing options...
JamesG Posted January 9, 2008 Share Posted January 9, 2008 Absolute minimum before i went any further with this would be to get him to pay off the 'Little' extra.......... That sounds like a good idea. Get the seller to do that. Phone the finance company and check with them you can pay off the balance over the phone. Then pay it off when you go to collect the car. Quote Link to comment Share on other sites More sharing options...
Paul Posted January 9, 2008 Author Share Posted January 9, 2008 Absolute minimum before i went any further with this would be to get him to pay off the 'Little' extra.......... That's what I'm thinking, at least there won't be anything left on it then. I know it sounds mad considering it but he has been honest up to now and told me it has outstanding finance without me having to find out via HPI check. I suppose he needs to contact the finance company and ask them how we go about it? It looks a really good example at a decent price but it won't be such a bargain if I end up getting screwed over it. Quote Link to comment Share on other sites More sharing options...
Paul Posted January 9, 2008 Author Share Posted January 9, 2008 Then pay it off when you go to collect the car. What by Credit Card? It's around £9K and although my card will be OK for it won't it cost me somehow even if I pay it off straight away? Quote Link to comment Share on other sites More sharing options...
JamesG Posted January 9, 2008 Share Posted January 9, 2008 It won't cost anything as long as you pay it off straightaway (at least, my HSBC VISA card doesn't). Alternatively, do you have VISA Delta? I bought my Elise at auction and paid the full amount with that. It's just a debit card and I got one when I opened a building society current account. Very useful! Quote Link to comment Share on other sites More sharing options...
Paul Posted January 9, 2008 Author Share Posted January 9, 2008 I've got a Lloyds debit card that's Visa/Delta, can you pay large amounts with them as that would be handy? Quote Link to comment Share on other sites More sharing options...
hogmaw Posted January 9, 2008 Share Posted January 9, 2008 Yes you can so long as the funds are available Quote Link to comment Share on other sites More sharing options...
Paul Posted January 9, 2008 Author Share Posted January 9, 2008 Yes you can so long as the funds are available Yeah, it's all there but I always thought that there was a limit. Quote Link to comment Share on other sites More sharing options...
Scooter Posted January 9, 2008 Share Posted January 9, 2008 Yeah, it's all there but I always thought that there was a limit. may pay to inform the bank of your intentions if it comes to it............ Although i'd still be treading very very carefully about this whole deal.......... As I know i could, if in the sellers position, get a hassle free unsecured loan with a say 36/48 months repayment deal, pay off the finance and if i sold the car within the month of taking out this loan i could settle it with no penalty at all (Barclays does this).............if it went over the month it would only cost one months interest when i paid back in full and settled the loan. It could be innocent and the seller doesn't know you can do this or possibly they couldn't get this sort of loan asap?? Quote Link to comment Share on other sites More sharing options...
Paul Posted January 9, 2008 Author Share Posted January 9, 2008 I'm going to be VERY carefull, I'll walk if he doesn't play ball. I'm assuming the finance is with a reputable company as it's only a few years old and came from a main dealer. If he don't play ball at any time then I'll run a mile, the only way I'll do the deal is to be in direct contact with the finance co. and pay them the money, if he wants it any other way then that's it I'm off;) Quote Link to comment Share on other sites More sharing options...
Scooter Posted January 9, 2008 Share Posted January 9, 2008 sounds good to me..........good luck with it Quote Link to comment Share on other sites More sharing options...
creative Posted January 10, 2008 Share Posted January 10, 2008 easiest way is to get him to pay the extra off before you go. You get the finance companies details and call them before you set off to confirm that he has made a payment... he will probably have to authorise this with them first..... you go pick the car up and pay the outstanding balance off at his house with him present. You know its settled, he knows he wont have anyone chasing him about it not being paid and he can then hand the car over.... easy! Quote Link to comment Share on other sites More sharing options...
_Lynz_ Posted January 10, 2008 Share Posted January 10, 2008 I've got a Lloyds debit card that's Visa/Delta, can you pay large amounts with them as that would be handy? I used to work for Lloyds TSB, like Hogmaw said as long as you've got the funds available it should be fine. You definitely need to ring them first and tell them what your going to spend, who the money will be going to and if you can when the transaction will happen, otherwise because it's for so much they will probably stop it. Quote Link to comment Share on other sites More sharing options...
Paul Posted January 10, 2008 Author Share Posted January 10, 2008 Got an e-mail from the seller today: Phoned 'Finance Mitsubishi' about selling, they are fine with that as long as the agreement is settled. (I remain liable for the agreement until they receive the full settlement amount). 'Finance Mitsubishi' suggested that we phone them on the day of sale and make two card payments direct to them. Once the cards have been authorised by the bank they will confirm separately that the card payments have gone through and the agreement is settled. I'm happy for you to drive away the same day. Similar to what has been said on here, what do you think? Quote Link to comment Share on other sites More sharing options...
creative Posted January 10, 2008 Share Posted January 10, 2008 seems fair enough.... but make sure you look up the finance company's number yourself before you go. That way you can be sure it is them that you are talking to. Quote Link to comment Share on other sites More sharing options...
Paul Posted January 10, 2008 Author Share Posted January 10, 2008 seems fair enough.... but make sure you look up the finance company's number yourself before you go. That way you can be sure it is them that you are talking to. Yeah, I've tried to find it online but no luck! 'Finance Mitsubishi' does seem to exist but I think I need to phone a main dealer for the number? Quote Link to comment Share on other sites More sharing options...
jefferson Posted January 11, 2008 Share Posted January 11, 2008 why dont you get him to give you the difference in cash when you pick the car up that way then you will settle the finance fully on your card in front of him and no one loses out - finance companies dont normally take 2 seperate payments to settle an agreement - a settlement figure is calculated by the finance company deducting most of the interest that would have been due to them under the remainder of the agreement - when you get the settlement figure it is valid for a certain amount of time dependant on when the next payment is due etc.... - to settle you make one payment to them before this date to clear - if it is finance it will also require an option to purchase fee to be paid which is approx £95 this then ensures you own the vehicle not the finance company Quote Link to comment Share on other sites More sharing options...
Paul Posted January 11, 2008 Author Share Posted January 11, 2008 I phoned a main dealer today and got Mitsubishi Finance's phone number. Gave them a ring and clearly they wouldn't talk about the individual car but said it's quite normal to pay off using one or more cards over the phone and they said they could fax a letter/statement to confirm the account is closed. The funny thing is that Mitsubishi finance is run by Black Horse loans, part of Lloyds TSB which is my bank so I hope they don't reject my debit card. Quote Link to comment Share on other sites More sharing options...
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