Purchasing a car with outstanding finance

stapeler

Hi, I'm buying a car privatly which has outstanding finance. The sell has asked for a check to be written to the finance company to clear off the loan. Is this sufficient? Is there anything else I need to do to ensure all is okay? Any advice?

Silvera

Personally I wouldn't buy a car with outstanding finance owed on it UNLESS myself and the buyer actually went into the finance company office and I paid the money directly over to them.

sohappy

i sold a van a while back that had finance on it,i went with the buyer to the finance office and he gave them a draft for the amount,we completed the change of owenership there and then,,make sure you get the reciept from the finance company,thats your proof that theres no money owed..

stapeler

Thanks for that. Decided with seller that we'll go pay off amount and sort everything there and then.

Thanks for advice

NUTLEY BOY

In addition to the above ideas and to really cover your ass you could make the cheque payable to the finance company and the vendor.

Remember that the amount of outstanding finance and the purchase price are probably different.

Fully endorse the view about getting confirmation that the loan - and therefore the lien - is fully cleared.

The main object of the exercise is to avoid committing " conversion " of the finance company interest otherwise you might have to pay twice.