Help please :( . I've finally found the vRS I want but the guy selling has told me that he has oustanding finance on it. This has confused me a bit over how to proceed and make any payments (not having ever had a car on finance before). Does he have to pay the finance off before selling it on? Can I make the payment direct to the finance company? Also any advice over best method of making the payments themselves (i.e. bank draft, electronic trannsfer, cheques or whatever).

Sorry for the muppet questions :stupid: but I didn't have these sort of probs when I bought my Moggie (BTW im still fuming about that thread on outdated bits on old cars - my moggie has the lot: trafficators, pull button start, starting handle, reverse direction wipers etc etc - brilliant laugh ) :wave:

I would not touch it till he clears the finance, tell him to get a loan for the outstanding amount and pay it off, then get a letter from the finance company stating it's clear of HP.

Otherwise it could get messy, with him saying it's clear and the finance company coming after you for the car.

The only other option is get the finance company (deal direct, not through him) to send you a statement of settlement cost, and deduct that from his asking price?

I'd be very wary of doing that tho.

The car belongs to the Finance Company and isn't the keeper's to sell until such time as he has paid for it. Period.

Take heed of Ian's strong note of caution. The outstanding finance is the seller's problem not yours (I would be in exactly the same position if I had to sell). Leave the seller to sort out how to clear it and do not hand over any money until you are sure there is no outstanding finance on it. If I were selling I don't think I would take out a short term loan to clear the HP because if the sale fell through I would be stuck with a different sort of debt - and a different timescale to repay it in which could be very embarrassing.

As far as paying is concerned, I would want a bankers draft or cash.

Cheers guys - have now spoken to the bloke again and he says that he has already spoken to the finance company, got their contact details and the amount outstanding and they have said that they would be willing to accept a direct electronic transfer from me to clear the finance when we handover docs etc (so the outstanding amount doesn't go through him). Guess if I deal direct with the finance company for the outstanding amount the risk should be reduced.

All a bit complicated for me :? but the car is a lot cheaper than those currently being sold through dealers. :P

he has already spoken to the finance company, got their contact details and the amount outstanding and they have said that they would be willing to accept a direct electronic transfer[/quote:4c105fbd5a]

Hang on, *he* has spoken to them? Speak to them direct or walk away.

but the car is a lot cheaper than those currently being sold through dealers. [/quote:4c105fbd5a]

If it seems to good to be true................

I agree with the notes of caution already expressed, but let me add a couple more thoughts to the discussion. It would be as well to find exactly what he means by "outstanding finance". If it is a typical 'hp' agreement then he does not have full rights of ownership, you would want to have you own dialogue with the finance house to be sure on the most secure way of making a payment that actually reaches them. The seller may have said "outstanding finance" and be referring to a car loan (it's all a matter of words and interpretations) but if for instance it was an unsecured car loan (personal loan) then he probably does have the right to sell the car and it's his responsibility to clear the loan

As to the method of making payment, the days of cheques clearing, building society cheques and other long-winded methods of payment should be over. Make sure your purchase funds are available in your current account and use your 'switch' card. The transaction is immediate, safe and does not incur any charges (as would be the case if you used a 'credit' card.) I have just purchased my car this way after discussing the options with the dealer.

I have seen a friend loose over

Don't worry Ian - he has agreed to have all the finance details ready for me at the weekend so that i can take them away for a week, speak to the finance company direct and sort everything out with them before we go any further.

Believe me - Im not that trusting with my money being a Scot! Re: cheapness of car, its still not as cheap as Parker's say it should be but my local Skud garage has a Y reg vRS with 22,000 on the clock (with tatty seats) at

Fair enough, sorry to sound so down on the idea, would hate for you to get stung.

:wave: thanks for all your words of warning - i'd heard some horror stories on this sort of thing and just needed a bit of a check on your views before getting heavy with the bloke. All a bit frightening when you are talking about one of the bigger cash transactions you make in your life. Anyway will let you know how it all goes and hope to be joining your ranks in the next couple of weeks. :auto:

Hi KentStu

I work for a motor manufacturer finance company, so may be of some help. If the finance agreement is HP, Conditional Sale, Personal Contract Purchase then it is owned by the fin co. I am assuming from what you have said that it is one of these and the previous posts all give relevant advice. The one sticking point I can see in your intended route is that the finance co will not (or should not ) discuss any part of the a/c details with you (being a 3rd party). This is due to the Data Protection Act. The only way around this would be to get the seller to speak to the Fin co in your presence and authorise them to speak to you. Make sure you pay the Fin co direct via BACs / chaps so that they confirm payment received immediately and then drive car away. Get confirmation from Fin co that they now have no further interest in vehicle and will notify HPI. Note that it can take a while for HPI to update their records.

PS make sure you HPI first and check all registers.

Steve