Outstanding Finance on a used car - MBClub UK

chord · 04-05-2011, 07:43 AM

Hello All,

I've seen a car I like and am thinking of buying it. However the car still has outstanding finance on it, which is about the value of the car. So I was wondering what is the best way to proceed?

I am thinking I will pay the outstanding amount to the finance company that way I know it will be cleared, however they will only take a CHAPS payment which means a couple of hours wait before the money will be cleared, however for those hours I will not have the cash or the car in my possession, so that leaves me a bit uneasy. The seller seems ok but I'd rather be a bit cautious, what are my options? I know I could get another car without finance, but this one fits the spec I want.

thanks in advance

Maz · 04-05-2011, 07:59 AM

Pay the settlement over the phone using a debit card in front of the seller.

Edit: just re read. Why will they only accept a chaps payment?

chord · 04-05-2011, 08:09 AM

Quote:

Originally Posted by Maz

Edit: just re read. Why will they only accept a chaps payment?

Apparently only the seller can pay by debit car

SPX · 04-05-2011, 08:12 AM

There are that many potential headaches with this way of buying a car, I would just keep looking.
Also, in my experience, CHAPS has no set time limit so you could be waiting all day to get confirmation that it's gone through.

Pontoneer · 04-05-2011, 08:18 AM

I presume the payment has to be done in your bank ? Sorry , I am not familiar with CHAPS .

Perhaps you can have the seller come to the bank with you , bringing the car , keys and all paperwork . If your banker is agreeable , ask the seller to hand everything over to your bank manager whilst the payment goes through ; once the payment is clear the bank manager can release the car to you .

An HPI check beforehand would be wise to confirm that once you have made this payment you will have clear title to the car .

If you are not confident about this , you could ask your solicitor to handle the transaction on your behalf , much as you would when buying a house - there would , of course , be a fee for his services but you would have some safeguard if it all went wrong .

chord · 04-05-2011, 08:46 AM

Quote:

Originally Posted by Pontoneer

I presume the payment has to be done in your bank ? Sorry , I am not familiar with CHAPS .

Perhaps you can have the seller come to the bank with you , bringing the car , keys and all paperwork . If your banker is agreeable , ask the seller to hand everything over to your bank manager whilst the payment goes through ; once the payment is clear the bank manager can release the car to you .

An HPI check beforehand would be wise to confirm that once you have made this payment you will have clear title to the car .

If you are not confident about this , you could ask your solicitor to handle the transaction on your behalf , much as you would when buying a house - there would , of course , be a fee for his services but you would have some safeguard if it all went wrong .

CHAPS is done through the bank and is a same day transfer. Doubt the bank would want to get involved in this type of transaction, solicitor is an idea. Although going to the bank and doing the transfer in front of the seller would be an option, then it's up to him to trust me!

Guess the best bet would be to do the payment and wait together until the payment has cleared.

Benzowner · 04-05-2011, 08:57 AM

I know a little about this. CHAPS payment is made same day but by close of business on that day, you could be there all day. You can phone your bank and ask them to make a bill payment which will normally arrive within 2 hours at the other persons bank or other sure fired way is to take cash to their nearest office and pay over the counter. Electronic banking should be instantaneous, it is when you take money out, but for some reason takes a few hours when you pay money in

Now, this all assumes that the other person can accept fast payment, would you beleive the VAT office, for example, can't and it always takes 3 days. They then do people for late payment but that another story. Check the receiver can accept fast payment.

jepho · 04-05-2011, 10:01 AM

Bankers Draft is as good as cash. Exchange the draft for the car and documentation. As a note of caution, I would want to know more about the finance company... lots of scams these days and you should never pay for something you are not receiving immediately. I would be looking for rodents when the seller wants you to buy but does not want to hand over the goods in a straight transaction... if it walks like a duck &c.

Plenty more cars and sellers and I would not want to see you to lose your money and the car.

SPX · 04-05-2011, 10:05 AM

What car is it that you are after?
And how far away is this car from yourself?

chord · 04-05-2011, 10:23 AM

Quote:

Originally Posted by jepho

Bankers Draft is as good as cash. Exchange the draft for the car and documentation. As a note of caution, I would want to know more about the finance company... lots of scams these days and you should never pay for something you are not receiving immediately. I would be looking for rodents when the seller wants you to buy but does not want to hand over the goods in a straight transaction... if it walks like a duck &c.

Plenty more cars and sellers and I would not want to see you to lose your money and the car.

If I exchange a bankers draft there is no way to know that the finance will be paid off. So I'd rather pay the finance company myself, who are MB finance.

chord · 04-05-2011, 10:25 AM

Quote:

Originally Posted by sweetpea

What car is it that you are after?
And how far away is this car from yourself?

Cars in Birmingham, so about 50 minutes away. The car is a E320 CDI sport, with plenty of options ticked. It's been owned by the same person for 3 years, previously it was a demonstrator at MB Birmingham.

tpwuk · 04-05-2011, 10:37 AM

I'd find another, sounds like a pain in the butt to me.

Although, the seller could just settle the finance with his or her credit card and then pay off their balance with your payment.

m2287 · 04-05-2011, 10:52 AM

so the problem is that he wont let you have the car untill the finance has cleared payment?

jepho · 04-05-2011, 10:58 AM

Quote:

Originally Posted by chord

If I exchange a bankers draft there is no way to know that the finance will be paid off. So I'd rather pay the finance company myself, who are MB finance.

If you have any suspicions that matters will not be settled as agreed, it is long past the time when you should walk away from the deal... IMHO

Dryce · 04-05-2011, 11:14 AM

Quote:

Originally Posted by jepho

If you have any suspicions that matters will not be settled as agreed, it is long past the time when you should walk away from the deal... IMHO

If only the world were that simple.

You follow good practice whether you trust the other party or not.

Successful cons and scams manage to get past peoples' suspicions.

04-05-2011, 07:43 AM	#1
chord Hardcore MB Enthusiast Join Date: Sep 2008 Car: E320 CDI Sport Posts: 396	Outstanding Finance on a used car Hello All, I've seen a car I like and am thinking of buying it. However the car still has outstanding finance on it, which is about the value of the car. So I was wondering what is the best way to proceed? I am thinking I will pay the outstanding amount to the finance company that way I know it will be cleared, however they will only take a CHAPS payment which means a couple of hours wait before the money will be cleared, however for those hours I will not have the cash or the car in my possession, so that leaves me a bit uneasy. The seller seems ok but I'd rather be a bit cautious, what are my options? I know I could get another car without finance, but this one fits the spec I want. thanks in advance

04-05-2011, 08:18 AM	#5
Pontoneer Hardcore MB Enthusiast Join Date: Aug 2002 Location: Ayrshire Car: '57 219 W105 ,'84 280SE W126 ,'86 500SEL W126 ; '03 C270CDI Avantgarde estate W203 Posts: 6,350	I presume the payment has to be done in your bank ? Sorry , I am not familiar with CHAPS . Perhaps you can have the seller come to the bank with you , bringing the car , keys and all paperwork . If your banker is agreeable , ask the seller to hand everything over to your bank manager whilst the payment goes through ; once the payment is clear the bank manager can release the car to you . An HPI check beforehand would be wise to confirm that once you have made this payment you will have clear title to the car . If you are not confident about this , you could ask your solicitor to handle the transaction on your behalf , much as you would when buying a house - there would , of course , be a fee for his services but you would have some safeguard if it all went wrong . __________________ Derek " In a Mercedes-Benz , EVERY seat is First Class "

04-05-2011, 08:57 AM	#7
Benzowner Hardcore MB Enthusiast Join Date: Jun 2004 Location: Bristol Car: B180 CDi W245 in Silver Posts: 1,837	I know a little about this. CHAPS payment is made same day but by close of business on that day, you could be there all day. You can phone your bank and ask them to make a bill payment which will normally arrive within 2 hours at the other persons bank or other sure fired way is to take cash to their nearest office and pay over the counter. Electronic banking should be instantaneous, it is when you take money out, but for some reason takes a few hours when you pay money in Now, this all assumes that the other person can accept fast payment, would you beleive the VAT office, for example, can't and it always takes 3 days. They then do people for late payment but that another story. Check the receiver can accept fast payment. __________________ Geoff Currently B180 CDi W245 in silver again Past cars 1999 S320 saloon 1997 E300TD Avantgarde Estate in silver.W124 260E,W124 300E Coupe, W126 280SE, 280GEL G Wagen Last edited by Benzowner; 04-05-2011 at 08:59 AM.

04-05-2011, 10:37 AM	#12
tpwuk Hardcore MB Enthusiast Join Date: Jun 2008 Location: Fylde Coast Car: CLK 430 Convertible (For Sale) Posts: 2,029	I'd find another, sounds like a pain in the butt to me. Although, the seller could just settle the finance with his or her credit card and then pay off their balance with your payment. Last edited by tpwuk; 04-05-2011 at 10:39 AM.

04-05-2011, 07:59 AM	#2
Maz Hardcore MB Enthusiast Join Date: Dec 2002 Location: Newcastle Car: Various Posts: 158	Pay the settlement over the phone using a debit card in front of the seller. Edit: just re read. Why will they only accept a chaps payment?

04-05-2011, 08:12 AM	#4
SPX Hardcore MB Enthusiast Join Date: Aug 2010 Location: Yorkshire Car: W202 C43 AMG & S203 C32 AMG & RR Sport HSE Posts: 7,790	There are that many potential headaches with this way of buying a car, I would just keep looking. Also, in my experience, CHAPS has no set time limit so you could be waiting all day to get confirmation that it's gone through.

04-05-2011, 10:01 AM	#8
jepho Hardcore MB Enthusiast Join Date: Apr 2011 Car: W203 C220 CDI Coupe Posts: 210	Bankers Draft is as good as cash. Exchange the draft for the car and documentation. As a note of caution, I would want to know more about the finance company... lots of scams these days and you should never pay for something you are not receiving immediately. I would be looking for rodents when the seller wants you to buy but does not want to hand over the goods in a straight transaction... if it walks like a duck &c. Plenty more cars and sellers and I would not want to see you to lose your money and the car.

04-05-2011, 10:05 AM	#9
SPX Hardcore MB Enthusiast Join Date: Aug 2010 Location: Yorkshire Car: W202 C43 AMG & S203 C32 AMG & RR Sport HSE Posts: 7,790	What car is it that you are after? And how far away is this car from yourself?

04-05-2011, 10:52 AM	#13
m2287 Hardcore MB Enthusiast Join Date: Jan 2010 Location: cambridge Car: cl55amg gone: c200k clk200 slk230 Posts: 804	so the problem is that he wont let you have the car untill the finance has cleared payment?

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