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Should I buy a used car that has outstanding finance on it?
The private seller has a secured loan on the car I'm looking to buy. What's the best way to handle this? Rather than trust him to settle the loan once I've paid him, should I insist that he clears the loan first, or is it safe for me to settle his finance directly with the lender, and then pay the balance to him?
Asked on 9 October 2024 by martin tonbridge
Answered by
Craig Cheetham
In all honesty, we would walk away from this one. You can't settle the loan for the vendor and if you buy the car with outstanding finance, then the finance company's interest in. the vehicle remains. It's too great a risk. We'd advise you to look elsewhere, unless the vendor settles the finance in advance and can prove it is settled.
Tags:
buying
outstanding finance
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