Hi guys,

Looking to buy a FL VRS TDI. It has outstanding finance it, owed to VW Financial Services (UK) Ltd on a Hire Purchase, though I'm not sure how much. Will find out tomorrow morning when I go to view it.

What's people's general views on this, ideas on how to proceed, and experiences with the same?

Many thanks guys.

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you'd expect to buy the car for at least its value minus any finance as once you buy it you'd have to pay it iirc

 

if its worth 5k but has 2k of finance i'd pay no more that 3k for example

Edited 26 April, 201412 yr by ryan-re

Cheers mate, forgot to add, car is private sale so it's a cash buy.

As far as I'm aware my options are to pay value minus finance figure, then pay finance myself. Or pay owner agreed figure, then they clear finance, which is very trustworthy! Any others?

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is this a private sale or from a dealer?.

Private. Think it's a company car it's at the company premises, although depends what's on the v5 I guess. Also, a sale agreement/receipt would be drawn up on my request stating sale for £xxxx, transfer from old owner xxxx to new owner, me, also noting any outstanding finance/settlement will be paid by myself or current owner to VW (dependant on circumstances), quoting finance agreement number, and copying the settlement certificate to the other party as proof, and being signed by old and new owner and also a witness.

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If the car is on Finance then it's not yours to sell is it ?

 

The car belongs to the finance company. So how can someone sell it.

 

I think

Indeed, but the monies owed is tied to the car, not the person. So, in theory, if I bought the car and the current owner decided against paying it off, I'd be liable and have the car repossessed, until I could recover my money by way of court action against the seller. Correct?

Anyone have any experience of buying or selling cars with outstanding finance?

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No. Walk away . There are plenty of 'clean' cars out there.

The seller gets a settlement figure from VWFS, they email this to the seller and also post it out

 

on the letter it will have VWFS bank details, you pay them the the financed amount and any remainder to the seller

 

VWFS confirm car has been paid off by sending an email within an hour i think and they release the car from finance.

 

thats it

You will be able to call vwfs and ask them if they still have any interest in the car. It may be that it is not too much and they are not inetetested or that the record has not been cleaned off when the finance has been paid. Either way speak to vwfs and see if they are bothered...

Do not buy a car with finance on it unless its settled at the moment you pick the car up.. If this was a dealer any finance would be cleared prior.

 

The fella who has the car currently (or company) has entered into an agreement with the finance company, if they sell it with finance outstanding they are breaking their contract...and the finance company are within their right to recover the car as you have not been credit checked or approved for the outstanding finance... 

 

Honestly, walk away and find a clean one or get one from a dealer!!

Cheers guys

Edited 26 April, 201412 yr by Cactusjack

All feedback appreciated guys. I'm willing to walk away at the slightest sniff of dishonesty. But if all appears honest and legit and it's a steal, it's a go ahead, as long as it can be confirmed that no finance is outstanding. Or, I'm happy to pay the agreed sum minus the settlement figure and pay the settlement myself (as long as it's below the agreed price).

I sold a car on finance once and the sale was less than I owed. You can do it but the finance company must be informed and they must recieve the full amount of the sale price, only then will they release their hold over it. The previous owner then arranges to pay the outstanding balance in full or monthly. The trouble is will the seller pay VW the monies? Do VW know the sellers intentions? Personally I'd walk away, too much hassle.

Why are people making this sound like a nightmare and difficult situation? Having outstanding finance is very common and easy to sort.

All you need to do is get the settlement figure from vwfs and as long as this figure is less than the agreed sale price you can ring vwfs on the day to clear it. Pay the remainder to the seller and its job done.

Not difficult. Not scary and not a disaster waiting to happen.

Why are people making this sound like a nightmare and difficult situation? Having outstanding finance is very common and easy to sort.

All you need to do is get the settlement figure from vwfs and as long as this figure is less than the agreed sale price you can ring vwfs on the day to clear it. Pay the remainder to the seller and its job done.

Not difficult. Not scary and not a disaster waiting to happen.

I agree, I bought mine from a private seller with outstanding finance from vwfs.

He had a settlement figure from vwfs, which I did a bank transfer to, and then the rest to the seller, on the day.

A quick call confirmed this had been done.

I received an email from vwfs a few days later stating they had no interest in the car.

If you trust the seller there should be no problems

Good luck

I agree, I bought mine from a private seller with outstanding finance from vwfs.

He had a settlement figure from vwfs, which I did a bank transfer to, and then the rest to the seller, on the day.

A quick call confirmed this had been done.

I received an email from vwfs a few days later stating they had no interest in the car.

If you trust the seller there should be no problems

Good luck

This is basically what I did about a month ago when I got my FL vRS tdi. Seller had nearly 9k of finance left, so I paid him the difference and vwfs the rest, confirmed on phone and then we finalised the deal. Now in the process of transferring over the service agreement because his deal had included 3yrs of servicing for free, which is transferable to me as the new owner only problem is Skoda seem to change their tune one day to the next - they now say they want a photocopy of the v5 in my name to change it over because the email/letter from previous owner isn't enough anymore! (Which they told us at time of sale it was)

We'll went to view it earlier, lovely car! Thankfully it's a company car, registered to the company on the v5, so funds available for a bank transfer to vwfs. Glad its not a dodgy private deal with a shady guy. Anyway, small deposit left, company clears finance tomorrow, tax's it by Wednesday as it's running out, then pick it up and pay balance by Thursday/Friday whenever I'm available. Happy.

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Well, picked it up earlier, all sorted. Lovely car! Look forward to learn a few things from you guys

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You'll have to put a few pictures up now.

First job for tomorrow

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Here she is, sadly not a lot of optional extras, just full leather and rear parking sensors from what I can gather.