I HAVE JUST COMPLETED AN HPI CHECK ON A CAR I AM CURRENTLY CONSIDERING PURCHASING, EXPECTING IT TO COME BACK OK, IT IS FROM A PRIVATE SELLER, AND THE REPORT SHOWS THAT THERE IS OUTSTANDING FINANCE AGAINST THE CAR,..
I REALLY DONT KNOW IF THAT IS NORMAL OR NOT, OR WHAT I SHOULD CONSIDER DOING NEXT,
CAN ANYONE GIVE ME ANY ADVICE ON WHAT I SHOULD DO NEXT ?
THANKS !
2007-01-09 23:32:52 · 28 answers · asked by cassey s 3 in Cars & Transportation ➔ Buying & Selling
If the report is right, outstanding finance can spell big problems as the money owed will have to be paid. Anyone with the lien on the car can claim it and you will be out the money. Make sure the seller straighten everything out with the bank or finance company. Do not take his/her word, ask to see a clearance. It is possibe the HPI report can be wrong.
2007-01-09 23:39:55 · answer #1 · answered by P.A.M. 5 · 2⤊ 0⤋
I would have an "open and frank" conversation with the seller & the Finance company. If you like the car and the seller will top up the outstanding finance thats fine. The finance Co is the legal owner till the settlement is made so talk to them.
If the finance has been paid regularly all well and good - there's just some time to run on the agreement and the keeper wants to trade up for a new car.
HOWEVER if there are gaps in the finance then the keeper has been having troubles - and may have skimped elsewhere on the maintenance of the vehicle - ask to see the finance agreement /payments/ bank statements. and work out the balance still owing i.e. :- 36 months @ ££ per month from date of purchase to date. Therefore should be £ XXX outstanding.....
Remember many many cars have HPI on them and some folk are slow to update new info so dig around & do your homework....
2007-01-09 23:54:31 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Most answers here are wrong, naive, and overly reactive. THIS IS NOT A PROBLEM -
Outstanding finance is fine as long as it is cleared before you pay for the car. This is what you need to do:
1) Discuss and agree with the seller that he/she has finance on the car and you will not take it until it is settled.
2) Get a 'settlement figure' from the finance company
3) If the settlement figure is less than what you are paying the seller, just pay the seller the balance, and pay the rest to the finance company. Eg. if car has £10k finance outstanding, and yoy have agreed £12k for the car, you pay £2k to the seller and £10k to the finance company. That way you own the car and it is finance free.
4) Agree this with the finance company, they are happy to do it this way.
5) If the car is in negative equity, ie owes more than it is worth, you need the seller to pay off the balance before you pay him/her. If they can't or won't, then walk away
2007-01-10 03:28:36 · answer #3 · answered by FerDeLance 2 · 0⤊ 1⤋
Kudos to you for running an HPI before parting with money.
The car isn't the sellers to sell until the finance is paid off. It tells the seller this in the contract they signed when they took the finance on.
Walk away as the car could be taken from you if finance is owing on it.
2007-01-10 00:42:50 · answer #4 · answered by Mark B 5 · 0⤊ 0⤋
When you buy the car keep back the finance owing and ask for the finance paying in book then pay it off . the owner might well be fully intending to pay of the outstanding hp but the way i have laid out makes sure you are not landed with the bill, if he does,nt
2007-01-10 01:32:01 · answer #5 · answered by ? 7 · 0⤊ 0⤋
# 1 Check the title. It should show you if there is a "First Secured Party"
A "First secured party" is the institution or individual that originally financed the vehicle.
If there IS; Ask the seller for a "Lien Release form"
If the seller DOES NOT have a lien release; Can they contact the financing institution & get one? If not; Start looking elsewhere.
2007-01-10 00:41:22 · answer #6 · answered by toby48315 2 · 0⤊ 0⤋
You could end up being liable for the outstanding finance - find another car! How wise of you to do the check.
Good luck
2007-01-09 23:40:52 · answer #7 · answered by essdee 4 · 1⤊ 0⤋
Find another car you really don't want the hassel that comes with a car with outstanding finance on it
2007-01-09 23:41:56 · answer #8 · answered by cliffhanger 4 · 1⤊ 0⤋
I would not buy it as its going to give you problems.If you relay wanted the car go and ask the owner about the finance outstanding on the car and see what they say.
2007-01-10 00:13:07 · answer #9 · answered by Li 1 · 0⤊ 0⤋
Don't touch it, as the finance company is still the legal owner. The legal owner is not necessarily the same as the registered owner. There are plenty of other cars around.
2007-01-10 09:22:04 · answer #10 · answered by bilbotheman 4 · 1⤊ 0⤋