Some advice needed...

[Ednamillion]

...and, apologies, not strictly MB-related.

A friend is looking to purchase a car in Britain and, like me, she is living in Ireland. The car has been AA-checked, Hpi checked and a deal has been struck - both parties are happy.

Here's the problem, seller (private) wants the cash (including the outstanding finance currently on the car) before handing over the car - understandable. Equally, my friend needs some reassurance/proof that on handing over the money the car will also be handed over. A complication arises insofar the current arrangement as I understand it includes having a third party pick the car up and transport it over here to said friend.

So, any methods/procedures/banking tricks to square this circle? I guess I'm asking to get a British view - there may be banking processes which allow monies to be deposited into an account but which can be recovered if the seller reneges on the deal?

Any advice/suggestions welcome...probably need them tonight/tomorrow at the latest though.

Thanks,

Edna'...

 

[Richard Moakes]

she needs to walk away from this deal.....

1). How does he know the seller will pay off the outstanding finance? She needs to pay them directly herself.

2). What is the relationship of the 3rd party to your friend? Is she known, or is this someone the seller has recommended?

Sorry, but on the surface, this doesn't sound good :-(

 

[toby1]

One should always clear any outstanding finance directly with the finance company.

The seller asks for a settlement figure, they have that sent in the post with an expiry date (i.e. before the next payment).

You pay the finance company directly their settlement figure, and the difference is the seller's.

That's what happens here anyway. I presume Ireland is similar.

What happens if the lovely bundle of cash you hand over, never arrives at the finance company? How would you know it's cleared? The finance company usually has title to the goods until full settlement.

Be very wary.

 

[Dave's E55 AMG]

Leave it alone!

 

[Ednamillion]

she needs to walk away from this deal.....

1). How does he know the seller will pay off the outstanding finance? She needs to pay them directly herself.

2). What is the relationship of the 3rd party to your friend? Is she known, or is this someone the seller has recommended?

Sorry, but on the surface, this doesn't sound good :-(

Hi Richard, thanks for your response.

1) That was/is a concern, it's best to pay off the finance company yourself?

2) I believe the 3rd party transporting the car is known to my friend - they do it on a regular basis, I understand they're not known to the seller.

Edna'...

 

[Ednamillion]

One should always clear any outstanding finance directly with the finance company.

The seller asks for a settlement figure, they have that sent in the post with an expiry date (i.e. before the next payment).

You pay the finance company directly their settlement figure, and the difference is the seller's.

That's what happens here anyway. I presume Ireland is similar.

What happens if the lovely bundle of cash you hand over, never arrives at the finance company? How would you know it's cleared? The finance company usually has title to the goods until full settlement.

Be very wary.

Thanks for your response, Toby1,

It appears the finance company gets paid off by the buyer then! I think this might direct my friend down a certain route, as it is, there are too many options - none with any guarantee.

Thanks again.

Edna'...

 

[Ednamillion]

Leave it alone!

Dave's E55 AMG,

Can I ask why you are suggesting she 'leaves it alone'?

Edna'...

 

[Richard Moakes]

Hi Richard, thanks for your response.

1) That was/is a concern, it's best to pay off the finance company yourself?

2) I believe the 3rd party transporting the car is known to my friend - they do it on a regular basis, I understand they're not known to the seller.

Edna'...

Absolutely, positively, 100% it is best to deal with the finance company directly and make sure they no longer have an interest in the car. If the current owner sends them a note with your details giving permission for them to talk to you, then they will usually deal with you directly.

Doesn't sound too bad on the 3rd party front, as long as they can be trusted with the cash. One word of warning though, if the seller has insisted on cash, whats to stop him and some large mates meeting the 3rd party and extracting the cash without handing over the car?

 

[Dave's E55 AMG]

9 times out of 10 the sellers don't clear the HP. You're left holding the baby as it where.

 

[Ednamillion]

Absolutely, positively, 100% it is best to deal with the finance company directly and make sure they no longer have an interest in the car. If the current owner sends them a note with your details giving permission for them to talk to you, then they will usually deal with you directly.

Doesn't sound too bad on the 3rd party front, as long as they can be trusted with the cash. One word of warning though, if the seller has insisted on cash, whats to stop him and some large mates meeting the 3rd party and extracting the cash without handing over the car?

The third party won't be dealing with the cash - they'll only be collecting the transporting the car over to Ireland (lot of it going on, I got my E300 down in Brighton...).

So, good, this thread has convinced me that the finance company should be dealt with by my friend directly.

 

[JEZ.S320L]

....So, good, this thread has convinced me that the finance company should be dealt with by my friend directly.

As someone who works for a Bank - absolutely, 100% - the ONLY way is to deal with the HP company is via YOURSELF. If the seller hesitates, coughs and splutters about that - walk away. You have probably saved yourself from a financial - and possibly, fraudulant - disaster.

Under the Data Protection Act, the seller HAS to authorise YOU to speak with the HP company on the sellers behalf. There again, make sure that it is the GENUINE HP Company you are speaking to - and not the sellers 'mate' on a landline.

 

[Ednamillion]

As someone who works for a Bank - absolutely, 100% - the ONLY way is to deal with the HP company is via YOURSELF. If the seller hesitates, coughs and splutters about that - walk away. You have probably saved yourself from a financial - and possibly, fraudulant - disaster.

Under the Data Protection Act, the seller HAS to authorise YOU to speak with the HP company on the sellers behalf. There again, make sure that it is the GENUINE HP Company you are speaking to - and not the sellers 'mate' on a landline.

Thanks JEZ.ML270,

Does your work in the bank allow you to suggest a process by which money can be lined up, so to speak, ready to go into the sellers account but is only triggered when the car has been released by the seller? We're dealing with the classic chicken and egg scenario - seller won't release car until monies have changed hands, buyer won't release monies until she knows car will be released...

Edna'...

 

[kth286]

The situation needs the setting up of an Escrow account.

see

www.fortis-escrow.com

 

[verytalldave]

Its not clear from this thread whether the car has actually been seen by the purchaser. I for one would NEVER EVER buy anything like a car without seeing it in the flesh. It could be a crock of poo disguised as a gem.
What with all the other problems, its not a deal I would enter into in a million years.

 

[s5aif]

I am in the process of purchasing a car with outstanding finance. What i have done is after receiving some info from this forum i booked a RAC inspection and they done over 150+ checks and received a full report and telephone confirmation of any thing i should know about. Car turned out to be A+ condition. I then paid the finance company direct after the seller put my name with the finance company. Received a letter of confirmation of payment from finance company and all debts are clear.

 

[Ednamillion]

Its not clear from this thread whether the car has actually been seen by the purchaser. I for one would NEVER EVER buy anything like a car without seeing it in the flesh. It could be a crock of poo disguised as a gem.
What with all the other problems, its not a deal I would enter into in a million years.

Hi verytalldave,

No, she hasn't seen the car in the flesh. She has had, though, a friend look at it, the AA and the HPI check and everything is coming up very good wrt the machine itself.

And of course, she's fallen in love with it anyway....so.....

As an update, two bank drafts are being completed - one for the finance company, one for the balance to the seller. The seller is prepared to release the car when they have received the draft (and not neccessarily when cleared by the bank).

She's going ahead with the purchase,

Thanks for your replies....if I have to revert back to this thread in the next couple of weeks you'll know things have gone pear-shape, big time!

Edna'...

 

[verytalldave]

I hope it goes OK for her...................:grin: