Buying a Car with finance owing

cmore

Hi guys,

I am thinking of buying a car privately but the seller has informed me that there is finance owing on the car. The problem is the seller is unable to clear the finance without selling the car first. I realise the car isn’t actually his to sell until the finance is cleared so here’s my question...

Is there any legal legitimate way that would safeguard both me and the seller to carry out this transaction? i.e. me clearing the finance and immediately take ownership of the car.

I'm wondering how garages do it.

Any thoughts?

Senna

I think this came up before, the buyer get a statement of amount owing, then pays the seller the agreed price minus amount owing. Then buyer can pay off the fiance without worrying if the seller will do it.
Buyer would probably need to check it with the fiance company first.

eman66

Same as that, but the seller was selling for the amount of finance owing. So I made payment out to the finance company.

OldmanMondeo

I was in this situation before, except I was selling the car. What I suggested tot he buyer was that I would get him to have a bank draft for the amount owed made out to the finance company and the balance payable to me. As he would have kept the receipt for the bank draft, he would be covered and able to get his money back from the bank should I not post the draft or it was to get lost in the post.

TBH this is the only way of doing it. If the seller realy wants to sell the car, this will be the best option for them.

cmore

Thanks for the info guys. I rang the bank today and got what I consider to be very good advice when dealing with this situation.

The seller will have to get his finance company to fax a settlement figure directly to me. Once I verify the fax is legitimate I can arrange suitable funds and have it ready to be wired to the finance company.

On day of transaction both buyer and seller will call into the local Garda station and have a Garda witness the signing over of the car. The Garda station will hold onto the form and keys while both parties call into the finance office where the money can then be wired to clear the finance.

I think doing it this way should safeguard all involved.

Thanks for the comments.

daRobot

cmore wrote: »

Thanks for the info guys. I rang the bank today and got what I consider to be very good advice when dealing with this situation.

The seller will have to get his finance company to fax a settlement figure directly to me. Once I verify the fax is legitimate I can arrange suitable funds and have it ready to be wired to the finance company.

On day of transaction both buyer and seller will call into the local Garda station and have a Garda witness the signing over of the car. The Garda station will hold onto the form and keys while both parties call into the finance office where the money can then be wired to clear the finance.

I think doing it this way should safeguard all involved.

Thanks for the comments.

That's a great way of keeping it risk free.