Buying a 2nd hand car whilst under finance.

#1
Hello All.

I am looking at buying a car 2nd hand, after chatting with the seller on the phone he told me that the car is under finance with around 10k still owing.

The car is a C63AMG and is exactly the right spec i am after. I have owned previous AMG's so I know alot about them although this is the first time i may buy one whilst under finance.

Just so I don't get my pants pulled down and dry bummed, can anyone offer any advice with regard to this? I am assuming that if i paid a desposit equal to the finance, with a signed letter by the seller stating that he will then pay this off. Once this is done, Then i will pay the rest and drive the car away?

Thanks.
 
#4
Hello All.

I am looking at buying a car 2nd hand, after chatting with the seller on the phone he told me that the car is under finance with around 10k still owing.

The car is a C63AMG and is exactly the right spec i am after. I have owned previous AMG's so I know alot about them although this is the first time i may buy one whilst under finance.

Just so I don't get my pants pulled down and dry bummed, can anyone offer any advice with regard to this? I am assuming that if i paid a desposit equal to the finance, with a signed letter by the seller stating that he will then pay this off. Once this is done, Then i will pay the rest and drive the car away?

Thanks.
My advice is Walk away.

If you are still really keen, ask him for more details about his finance scheme. Is the loan linked directly to the car?
 
#8
Many cars still have finance on them when they are placed up for sale or part exchanged.

Its not a deal breaker provided you do as Joey Deacon says and pay the finance company first and the balance to the previous keeper.
 
#11
Do not pay any money to the current owner until the credit side is sorted.
Ok so if i view the car and its what i'm after, i should then speak to the finance company, settle up with them directly, then once thats been done pay the seller the balance?

If i do the above, what sort of protection can i give myself?
 

Legs

ADC
Book Reviewer
#16
Ok so if i view the car and its what i'm after, i should then speak to the finance company, settle up with them directly, then once thats been done pay the seller the balance?

If i do the above, what sort of protection can i give myself?
The seller may not agree to that, for one reason or another.

Alternative answer: What could possibly go wrong?
If the seller doesn't agree then walk away as it's clear he won't pay the Finance off, leaving you to pick up that bill as well as what you pay for the car privately.
 

jarrod248

LE
Gallery Guru
#17
Ok so if i view the car and its what i'm after, i should then speak to the finance company, settle up with them directly, then once thats been done pay the seller the balance?

If i do the above, what sort of protection can i give myself?
There will probably be an early settlement fee that he's after with your money I'd not let him profit from this.
It could be he's after keeping your money and the car. I'd be careful.
 
G

goatrutar

Guest
#19
Over here it's safer to buy 2nd hand from a dealer as you have guarenteed title on the vehicle. I assume the UK has similar laws?
 

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