Quizzes & Puzzles14 mins ago
hire purchase
5 Answers
can anybody tell me about hire purchase as im buying a car and the person has 4000 outstanfding on it saying that they are paying it off when sold does this affect me if i buy and he dont pay it off?
thanks john
thanks john
Answers
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Worth looking onto this a bit further, sure someone will have a better answer, but have found this from another forum explaining the position briefly
You should always consider carrying out checks before you buy a car. There are agencies, such as HPI, who will search their databases and let you know whether the car has a finance agreement registered against it, or whether it has been declared an insurance write-off, and also whether it has been reported stolen. Incidentally, stolen cars (in common with other stolen goods) will always remain the property of the person from whom they were stolen.
Something interesting to note is that with Hire Purchase agreements (unlike a loan) the car belongs to the finance company right up until the last payment is made.
You should always consider carrying out checks before you buy a car. There are agencies, such as HPI, who will search their databases and let you know whether the car has a finance agreement registered against it, or whether it has been declared an insurance write-off, and also whether it has been reported stolen. Incidentally, stolen cars (in common with other stolen goods) will always remain the property of the person from whom they were stolen.
Something interesting to note is that with Hire Purchase agreements (unlike a loan) the car belongs to the finance company right up until the last payment is made.
DO NOT GIVE HIM ANY MONEY.
You must get a settlement figure from the finance company (I would do a HPI check myself) and pay the finance company any balance outstanding and give him the rest (ie if you are paying �6,000 for the car and there is �4000 outstanding on finance, you would pay the finance company �4000 and �2000 to him).
If you just give him the money, and he does not settle the finance, the finance company are well within the rights to repossess the car leaving you with nothing.
You must get a settlement figure from the finance company (I would do a HPI check myself) and pay the finance company any balance outstanding and give him the rest (ie if you are paying �6,000 for the car and there is �4000 outstanding on finance, you would pay the finance company �4000 and �2000 to him).
If you just give him the money, and he does not settle the finance, the finance company are well within the rights to repossess the car leaving you with nothing.
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