Buying a mk5 GTi with o/s Finance...

[Mk5 GTian]

I'm going to look at a mk5 GTi on Saturday which has 4k on o/s finance. If I like it, here's what I propose to do:

1/ Put a 100 pound returnable deposit on the car to secure it.
2/ Get the owner to get an up to date settlement figure in writing.
3/ Get the finance company to confirm that once this is paid, there is no other o/s finance on the car.
4/ Go with a big mate and settle the finance direct to the finance company in the presence of the owner in the week, office hours.
5/ Get written confirmation that the finance is now paid by email from finance company to owner and copied to myself.
6/ pay the balance to the owner.
7/ complete the deal, paperwork, get a receipt witnessed by owner and my friend and drive the car away as normal.

Can anyone see anything wrong with this? Will I have fully covered myself?

[rich83]

I would always demand that they pay off the finance first.....

You literally cannot be to careful

[Golf_GT_TDI]

Hi, I have just done the same, who is the finance agreement with? In my case it was with Black Horse, seller had a settlement figure I paid with debit card over phone and it was confirmed there and then, we then completed sale and I drove car away, 48hrs later it was updated on Hpi check.

[ED30GTI]

Same here ,,, in office hours get them to ring up for a settlement figure , and pay it over the phone , job done ,
That's what we did 

[doylebros]

Same here ,,, in office hours get them to ring up for a settlement figure , and pay it over the phone , job done ,
That's what we did 

I've always done as above put I think your documented approach is better than the I've previously used!

[Golf_GT_TDI]

Ask seller to make out full receipts with details of settlement/payment, both sign and date each copy.

Ideally leaving a deposit and having the seller settle finance before proceeding is the way to go but if he/she doesn't have the funds to do so prior to the sale then paying direct with debit card to clear the finance is the way to go.

If you need any more advice ask away 

[Mk5 GTian]

The finance company is unwilling to help and give all the documentation at the stages I've requested. They are very unhelpful, won't email anything, will only operate by snail mail, and want me to take their verbal over the phone as read, and pay it. My concern is that there might be OTHER finance o/s, so in light of this unhelpfulness, I've told the buyer I will only take the car if they settle it first and also once it's clear on HPI.

It's a shame as it's only 4.4k and a lovely 06 example in silver, leather and sunshine roof 

My approach with documentation would have worked, but they're not playing ball, so as Richard says, you cannot be too careful.....

Thanks guys 

[tony_danza]

Hmm, having been both the buyer and seller in this instance - I've never had a problem with a finance company being more than willing to help with emails etc. at every stage.

Just take your time I guess, if the seller is straight up, he'll wait.