Outstandng Finance on Car.

[Lakeslad]

I hope I can get some advice: I went to look at a car today which I really liked. It is being sold by a trader who is selling it on behalf of someone else. All the paperwork seemed fine so I said I will get back to him as I wanted to do a HPI check, Thank goodness I did, I did the check through the RAC which said everything is in order except there is outstanding finance on the car. I was gutted when I saw that.
I phoned the guy who said no, it was paid up. Anyway I will phone Black Horse Ltd tomorrow and check but if there is finance outstanding can I offer to pay the balance to the finance company and the remainder to the guy or is that not allowed? Is he allowed to be selling a car knowing it has finance outstanding?

Many thanks

[dawg_kane]

no he is not allowed to sell a car which still has finance left on it...good job you checked first or you could have lost the car if the finance company came after it for the rest of the money owed...
The seller must pay off the outstanding finance first before selling it, but you might be able to agree between you that you pay the finance company yourself and give him the remainder...but make sure you have written proof either way that the finance is settled before you take the car away.

[Mrs_Pegasus]

About 3 years back, my husband part ex'ed his car against a new one. The exisiting car had a loan outstanding on it and we paid it in full. However, the HPI continued to show it still had a loan outstanding for over 1 month. Eventually the dealer, contacted the credit company direct who confirmed it was settled and that the HPI record would be amended the following month. It might be worth checking when the finance was settled because the records may not have been updated.

[Lakeslad]

Thank you Mrs_P, I will call them this morning to double check. The gent has said that it is paid off so it is possible the loan is paid off. Will let you know. :-)