Hi all, first time poster here, i am after some expert advice re part exchange my car + cash with a private seller which still have some HP left to pay off on his car. What i want to know is which would be the best and safest way for me to but his car. He told me that he will use the money he get from me to pay off the remaining HP but im not too sure i want to hand over a big sum of cash. A friend have to me that i can write a cheque to the finance company to pay off the HP if the amount owe is less or equal to the amout i've offered him but what if the amount he owe is more that the amount i offered. what can i do then? I know that the car is not belong to him and he can not sale it without inform his finance company .so i wouldnt be writing a cheque payable to him directly.

any advice would be much appreciated.

Thank you,

if it doesnt belong to him why do you want to buy it??? isnt it illegal?
giving a big amount of money will be like giving you house key.
there is alot of car seller with great deal but that one is not one if them.
try to look around.... surf the net.......and ask someone how knows alot about this

if my ideal is bad sorry coz im just 15

Hi, I would ask the seller for the finance company details and his agreement number and call them directly
and ask for a settlement figure. If you do decide to take the car - I would get them to go with you to a bank and
let them pay the settlement figure into the bank while you are there so you know the payment has been sent -
I would also recommend you ask the seller to do a bank transfer pay by debtit card directly to the finance company or pay cash as a cheque can always be stopped.

It strikes me funny that the seller is quite happy to let you drive off in a car that doesnt belong to him (finance still outstanding)
and will settle the finance later - remember if the finance is not settled, the finance company may reposess the car
to clear any outstanding balance.

Hope this helps

I come across this issue alot as i work as a finance broker. Im guessing the confusion over ownership comes from a discussion with the vendor (Seller). There are many forms of HP and what most people dont realise is that technically with some HP agreements they dont own the vehicle untill they have made the last payment.
What you need to do is simple. Due to Data protection Laws you cannot personally request a settlement figure unless your a trade purcheser. The person who has the HP in there name has to do this. You should ask the seller to contact the HP company and request a settlement to be sent DIRECT to you, either fax or email or even snail mail if you can wait. From here you are now able to pay the HP company directly.
If the settlement figure is more than the cash you were adding to the deal, HE MUST pay the difference first. Do not trust him to do this after. I like most like to trust but you should nt in this senario. If there is nothing suspect happening then the seller will have no problems in allowing you to settle the finance directly.
Also make sure you receive a letter of clearence or a Non interest letter from the HP co. before you complete. Sounds alot i know but 2 phone calls, 1/2 an hours work and its all done and you are safe.
If you need anything further just ask. I work with most HP Companies so if you know which HP company he has used ill be able to let you know best contact numbers and their prefered method of process.
Hope this helps.

DaimlerChrysler Financial Services UK Limited