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Hello - Outstanding Finance - an issue?

Adam George

Member
Joined
11 Feb 2007
Messages
8
Hello,

We have been lurking for a long time and have a question regarding the impending purchase of a private sale 911. The owner has informed us that there is outstanding finance (with Porsche) on the car and that he would settle the balance with our cheque. However he is happy to look at us settling the amount direct but I would like some further advice and whether anyone has some experience in this situation.

Obviously we could pay the finance off and provide the balance to the seller but what happens if they then don't sell us the car for whatever reason and we have just cleared their debt!!!

Thanks

Adam


Migration info. Legacy thread was 116229
 
JamieG is the financial guru round these parts



as for the Finance situation..................is it not the car that has the finance rather than the owner so to speak,so as long as he gets the money that he's due(less the Finance Co),its really the Finance Co you are buying it from........if you can understand what I'm trying to say there :?



anyway speak to JamieG


Migration info. Legacy thread was 116231
 
Previous poster said:
Quote: Originally posted by Adam George on 11 February 2007

Hello,

We have been lurking for a long time and have a question regarding the impending purchase of a private sale 911. The owner has informed us that there is outstanding finance (with Porsche) on the car and that he would settle the balance with our cheque. However he is happy to look at us settling the amount direct but I would like some further advice and whether anyone has some experience in this situation.

Obviously we could pay the finance off and provide the balance to the seller but what happens if they then don't sell us the car for whatever reason and we have just cleared their debt!!!

Thanks

Adam



I bought my last car with outstanding finance, one payment to the finance company the balance to the seller, no problem but obviously you have to safeguard yourself against conmen. I had visited my sellers home and met his family, there was no doubt the car was his or that he had a deposit on an Aston

Migration info. Legacy thread was 116233
 
I've sold cars with outstanding finance before and got the buyer to do two bank drafts - one to the finance company, one to me... You need to see a recent, original settlement figure Document from the finance company and insist on confirmation of settlement.

If you want to be really certain, do a telegraphic transfer in the presence of the seller and contact the finance company to confirm finance settled before driving away in your new car. Costs about £20, but a small price to pay for peace of mind.


Migration info. Legacy thread was 116240
 
Tread carefully - as long as you follow the steps, you're ok.

First, contact the local OPC to where the car is - and explain you're buying a car with finance on and ask if they'll hold the car until the transaction is finalised. I've always found the service departments very helpful with this. You may want to use this time to have the 111 point inspection done for a warranty, if applicable.

Second, ask the seller to obtain a 'settlement' letter - ideally have the finance company send this to your fax machine directly - the seller will have to request this for data protection purposes. This will show the total amount the finance company have a charge on against the vehicle.

Agree with the seller you will pay the finance shown on the settlement agreement direct to the finance house by same day CHAPS wire transfer from your bank - then pay him the balance - ONLY when you've received a 'finance cleared' letter from the finance company.

The finance house, should, be happy to issue a letter to you indicating you have paid the finance and they therefore have no further interest in the vehicle.

When you have this - and a receipt for the balance to the seller - ask the OPC to release the car.

I've done this two or three times and it's always worked for me.

Paying the whole amount to the seller means the seller could keep the finance amount - and you're left with a car with a finance charge on - DON'T take the risk - your only option is a lengthy legal battle to recover the amount from the seller.

Not having a third party look after the vehicle while you sort out his finance can result in him driving off with no finance on his vehicle - and a lengthy legal battle to recover it.

If the seller isn't happy with this - then there's something fishy going on.

Good luck

Philip

Migration info. Legacy thread was 116246
 
Just looked - is Warfield near Bracknell? If so, ask OPC Reading to help out - they do this all the time and are usually very obliging as they know they'll get your service work :wink:

Philip

Migration info. Legacy thread was 116247
 
Hey Adam, you must be on my doorstep literally, I'm in Warfield too.

Migration info. Legacy thread was 116250
 
Good idea Phillip - getting an OPC to hold the car during the transaction, never thought of that! As a seller I would be perfectly happy with that arrangement, so as you say, if the seller objects RUN AWAY!!!! :)

BTW welcome to the forum... tell us a bit more about the car you are hoping to buy - you never know, one of us might know the car / current owner and be able to vouch for them!




Migration info. Legacy thread was 116256
 
My advice would be for you not to allow the vendor to settle the finance on your behalf as if they don't do this, the finance company still has title and could repo.

You need to get a copy of the settlement figure, pay that directly to the finance company and the balance to the vendor. If the vendor said to you that he has just settled the finance, do not accept a photocopy cheque or similar - you will need a letter / fax from the finance company confirming that they have no further interest in the goods. This is called a Clearance Letter.

As to issue about paying off the finance and you not getting the car, you have to be comfortable yourself with your relationship with the vendor and suggest that you get a short agreement drawn up to state the obligations of each party.


Migration info. Legacy thread was 116501
 
Hello,

Thanks for all the quick and comprehensive replies.

Based on the responses I have spoken directly to Porsche finance and we will be paying them the settlement figure directly but they will not apply it to the account until we are happy that we have the keys / paperwork etc. Once we have confirmed everything is OK they will allocate the amount to the account and fax over the settlement letter to us and the seller. According to Porsche this happens all the time and there is a standard procedure. The remaining balance will be paid directly to the seller by us.

Thanks again.




Migration info. Legacy thread was 117685
 
Previous poster said:
Quote: Originally posted by Rob J on 11 February 2007

Hey Adam, you must be on my doorstep literally, I'm in Warfield too.
Small world......

Look out for a Silver 996 with aerokit on the roads!!! I must admit I haven't seen any other "regular" 911s around though


Migration info. Legacy thread was 117686
 
Previous poster said:
Quote: Originally posted by Adam George on 15 February 2007

Previous poster said:
Quote: Originally posted by Rob J on 11 February 2007

Hey Adam, you must be on my doorstep literally, I'm in Warfield too.
Small world......

Look out for a Silver 996 with aerokit on the roads!!! I must admit I haven't seen any other "regular" 911s around though



Bright red GT3's are not exactly regular though! If you see one with my name on give me a wave. I'm 2 mins walk from Tesco's, we'll have to have play in Tesco's car park if it snows again!!

Migration info. Legacy thread was 117689
 
Well done Adam and welcome to the club - also thanks for the handy advice for everyone buying privately where Porsche Financial Services are the original funder.

Migration info. Legacy thread was 117700
 
Previous poster said:
Quote: Originally posted by Rob J on 15 February 2007

Previous poster said:
Quote: Originally posted by Adam George on 15 February 2007

Previous poster said:
Quote: Originally posted by Rob J on 11 February 2007

Hey Adam, you must be on my doorstep literally, I'm in Warfield too.
Small world......

Look out for a Silver 996 with aerokit on the roads!!! I must admit I haven't seen any other "regular" 911s around though



Bright red GT3's are not exactly regular though! If you see one with my name on give me a wave. I'm 2 mins walk from Tesco's, we'll have to have play in Tesco's car park if it snows again!!
I'm a fraud - it will be my wife's car, it just seems I am involved in the research, haggling etc, basically everything but the actual paying bit!

I'll keep a lookout for the Red GT3 though - we are only 3 mins walk from Tesco.




Migration info. Legacy thread was 117703
 

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