How safe is to buy cars from private seller when the car is not bought out right and still under Credit / HP?
Just worrying that if after buying the car from the seller, and then the seller decided not to keep up with the payment. The finance company may come and reclaim the car.
Or is it best to avoid them? If most people buying cars which is under 3 yrs old, we all face with this problem. what do we do?
Any thoughts on this?
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With so many cars on the market, why buy a car where this could be a problem? Save yourself the stress and avoid cars with finance outstanding.
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let me be the last to let you down....
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What check I use to ensure the car has no outstanding finance?
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As I understand it the car belongs to the HP company. It is not the registered keepers to sell. Therefore if the keeper does not keep up payments the HP company will come and collect the car.
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Try www.hpi.co.uk/tradeweb/ but as I understand it, they are not perfect and can get it wrong with only limited comeback on your part.
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If the buyer hasn't kept up with the payments he may not have maintained the car properly. This is a very risky venture. Everything about it is wrong. In normal circumstances if you were an onlooker, not wanting to buy a car you would walk away, but 'car fever' takes over. Normal prudence goes out the window as you want that car, you want that car....'
As lordy says the UK has about 2 million second hand cars. Why risk trouble. Buy a normal car, registered at Swansea from a normal person, with the car registered and kept at a normal house. Anything not normal = trouble.
On you receipt get the seller to state 'there is no outstanding HP, credit, or outstanding finance on this vehicle'. Normal individuals will not flinch to state the truth. Others may not. Always get an HPI test done.
I told my friend to insist on this even when purchased from a Main agent some years ago. No need she said, its a proper Main agent. I laughed at these young people. Two days later she said in a rush, guess what; that car had ourstanding HP on it. No I said.
The agent claered it and all was well.
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How safe is to buy cars from private seller when the car is not bought out right and still under Credit / HP?
I almost can't believe the question.
You must not knowingly buy a car with outstanding HP.
The seller isn't allowed to sell it, as they don't own the car. However some people may try to sell, and you can (must) check that the car is clear using HPI, as they offer some protection if they get it wrong.
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Millions of used cars are sold each year, with many of them having outstanding finance, which has to be settled before the title can be transferred. In many cases another HP agreement is taken out, or a personal loan obtained, or even added to a mortgage.
As long as the communication and flow of money between potential buyer, seller and finance company follows the 'correct' procedure (laid down by the finance company) there should be a straightforward way to purchase with confidence - it will of course require liabilities and funds to be cleared, perhaps with written confirmation, which can take a wee while.
If people are selling a car on finance because they can't afford it, you'd have to judge each case on its merits - not all sellers are cheats and rogues, and even the most canny of folk can find they need to sell a car quickly.
The whole used car market is geared towards sellings cars quickly and offering finance where required. I have in the past been able to settle finance on one car and take it out on another with just a few phone calls, with the confirmation arriving a few days after the transfer - no fuss or suspicion at all.
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With his permission,phone the credit company,quote his agreement number,ask for a settlement figure;you then pay that to the credit company and deduct that sum from whatever you agreed to pay for the car.
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With his permission,phone the credit company,quote his agreement number,ask for a settlement figure;you then pay that to the credit company and deduct that sum from whatever you agreed to pay for the car.
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Good call !!
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