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buying a car with outstanding finance

poweller Apr 16, 2007

  1. poweller

    poweller Member

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    Just rang up about an S3 and seller told me it has outstanding finance on it.
    If i wanted to buy it how would it work? has anyone ever done this? Sounds a bit risky to me..
    cheers
     
  2. scib4

    scib4 Beep-Beep!

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    Make the cheque payable to the finance company and then ask for conformation to be forwarded on to you, that's what i have done in the past :yes:

    Mike
     
  3. poweller

    poweller Member

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    sounds like a plan, trouble is its a fair drive, so if I want it I need to pay cash and drive away. Cant see he will let me have it with an uncleared cheque..
    cheers
     
  4. jcs356

    jcs356 Brum brum

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    The important thing to do is to make sure the finance co get the money.

    You give him cash, he disappears, finance co still have legal title on the car because there is still part of the debt outstanding. They can reposses it from you as you have no legal title to the car. If that happened, you'd have to take the seller to court to get your original money back - assuming you can find him.

    TBH I'd keep looking
     
  5. poweller

    poweller Member

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    I guess if I could make a visa payment over the phone, that might work?
     
  6. Tooks

    Tooks Active Member

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    What I've done in the past is get two bankers drafts drawn up, one for the finance company based on the settlement letter I was shown (confirmed by me on the telephone too), and another for the balance to the seller.

    On the day of pick up, I gave him his draft, and then in front of him I put the finance company draft in an envelope and we both went to the post office to send it Special Delivery.

    If the seller won't agree to some similar arrangement that suits you both, then I agree, walk away.

    The credit card payment over the phone might work too, but they'll probably want fees to do it that way, so make sure you knock it off what the seller is getting!
     
  7. Aky

    Aky Aky

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    There shouldn't be a fee for paying by Debit Card. Credit Card fees vary anywhere between 2-5%
     
  8. Strider81

    Strider81 New Member

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    if you want the car that badly,

    make a trip to the bank with the seller.

    for £20 make a CHAPS payment for outstanding amount to finance co and send the remainder to sellers Bank A/C.

    As the seller is with you he can sign receipt to prove payment aswell as its is done from bank account you have physical evidence.
     

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