Post by Andrewr At Work<SNIP, selling a car with finance outstanding>
Post by Mike GA foolish way for anyone to sell a car on finance IMO. A sensible way is to
get a settlement figure from the finance Co, and include that in the selling
price.
Then pay off the finance Co yourself.
The issue with doing this, of course, is that you're not legally
entitled to sell the vehicle until the outstanding finance is cleared.
That's right, but IME as long as you do pay them the agreed settlement
figure ASAP, finance Co's are not concerned. I don't they would be, even if
you told them immediately after the transaction with the buyer, except to
tell you that if the money did not arrive as promised, expect trouble. :-)
Post by Andrewr At WorkThere may also be questions about whether you have to tell the seller
that there is outstanding finance, but you are paying it off.
I've sold a couple of cars on finance in the past. I gave both buyers the
complete story. On one occasion I showed the buyer the letter from the
finance Co with the settlement figure. My letter accepting it, and a
building society cheque for the same amount. In front of him all this was
put in a pre-addressed stamped envelope, which was then given to him to
post.
Not foolproof I know, but it satisfied both of us at the time.
Post by Andrewr At WorkBear in mind that the section of the consumer credit act we've been
discussing only applies to innocent buyers who purchase the vehicle in
good faith. If they have been told, by the seller, that there is
outstanding finance then they are no longer innocent and are aware that
the seller does not have good title to the vehicle.
I have my doubts about that interpretation. I don't believe an owner can be
deprived of possession so easily, or that good faith is enough for an
innocent buyer to retain possession.
If it were true, I could break into a house. steal the keys and all the
paperwork for the owners car, say whilst they were on holiday. Sell it to
you or anyone else for cash, using the owners name. Then dissappear.
According to that interpretation of the law, the buyer would have legal
possession, and the original owner would have lost his car.
In fact what would happen is that the car would recovered and given back to
it's rightful owner, and you, or the buyer, would be told "hard luck, find
the seller, (me whose disappeared) and sue him. I doubt the police would
offer much help. None as far as getting your money back.
Post by Andrewr At WorkAt the very least that leaves them liable to repay the finance if the
seller defaults and does a runner.
Pay the outstanding finance, or lose the car. Not exactly a pleasant choice.
Post by Andrewr At WorkSo, IMO, it would be better to get a settlement figure from the finance
company and pass it to the buyer and get them to sign an agreement to
say that the purchase price of the vehicle has been discounted by that
amount and they agree to settle the outstanding finance.
I wouldn't touch such an agreement with a barge pole, and IMO it would only
help if it came to sueing the buyer. It wouldn't make any difference.as far
as the finance Co is concerned. You, the 'seller' would still be legally
liable for the outstanding finance, which they would demand you pay
immediately.
Post by Andrewr At WorkI still don't think the seller is legally in the right, but they do at
least have a chance of getting the seller to cough up.
If a seller didn't settle as promised. I wouldn't fancy my chances of
getting the money through the courts. If you did get judgement, it might be
for as little as £10 a month until it's paid off. Not exactly any
consolation if you've just forked out hundreds, if not thousands in one
lump. That's on top of what the car cost in the first place, don't forget.
In such dealings. From either side. I'd want to be near 100% certain that
the finance wil be paid off. Selling I'd want the money up front. Buying,
I'd try to supply a building society cheque for the outstanding amount and
see it posted.
I'm not arguing with you BTW. Just disagreeing. :-)
Mike.