HPi outstanding finance (1 Viewer)

Carreraboy

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After months of searching for our first MH found the perfect vehicle and negotiated a fair price. As its a private sale, I have just done a hpi check to be safe and it flags up outstanding finance on the vehicle. As its only 2 years old I guess this is not unusual?

Any advice as to my next actions? Do I need to be contacting the finance company to pay them or should I just walk away?
 

Hayleylulu

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the finance company are the owners of the van if you buy of the seller and he dose not pay finance the they can take van of you and you loose van and your money
 

haganap

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simple way to do it.

Ask seller to obtain the settlement figure,

then arrange to pay them their share directly,

speak to the owner, as he must know its on finance any way, what ever you do, do not hand him the money to pay it off as it may not make it.:thumb:

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Nov 6, 2008
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If the now owner doesn't pay, the finance company repossess the vehicle. You lose.
I bought a car on e-bay once, did HPI check and finance outstanding with Mercedes Benz. When i spoke to the owner, he said, "when i get the money from you i was going to pay it off". I don't think so, goodbye.

Craig
 

Jaws

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Far from rare or unusual, but if the person selling the vehicle has not come up front and informed you about the debt I would be a bit sussy

Contact the finance company and find out what is owing.. Go to the seller with that information and make arrangements to pay off the outstanding finance via bank transfer as part of the transaction

It all sounds a little fraught and dodgy but providing you follow the simple rules all will be well :thumb:
 

jhorsf

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They should have told you about the finance you need to make sure they have paid it off before you consider parting with any money.anyone who did not tell me about this I would not trust and would walk away:Eeek:

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lorger

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Hi There firstly im glad you have found your first mh.

As for the HPI its not something to worry about but you have to make sure you do the right thing. We bought our van when it was just over 1 year old and it had finance on it but the seller told us this from the start (did your seller if not why not). So what we done is he phoned the finance company (black horse) and told them we where buying van and gave them permission to talk to us, he gave us a password. We spoke to black horse they told us how much was owed so when we arrived at his house we phoned them again and paid the amount with our debit card and gave him the rest in cash.

The reason we didnt pay it before hand was incase he didnt hand over van so dont pay off his finance until you are at his house and ready to drive van away you will need to agree with the finance company on how it can be paid and if like us using debit card check up with your own bank first also so they know your going to be spending a large sum.

Hope this helps but remember dont pay any money until you are there and ready to collect van.

Gerry
 

philk

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Many people, us included, take hire purchase to part fund a motorhome even if you dont need to. There is good logic behind this, basically consumer rights.

What you need to do is get the owner to get a settlement figure, you would then pay the agreed price minus the outstanding finance,which you pay directly to the finance company, in so doing you know nothing is outstanding.

Remember though that from the sellers point of view they will equally have a nervousness that you dont pay the outstanding finance so documentation/agrement needs to be watetight.

Pm me if you need any further advice.

Philk
 

pappajohn

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the correct, as far as I'm aware, procedure is to agree a price, then ask the vendor to get a written statement of account from the finance company.

you then make payment to the finance house, using the payment form included with the statement or on the phone with the account number(it doesn't matter the account isn't in your name), and pay the vendor the balance of the agreed price.

on no account allow the vendor to make payment to the finance house...how will you know he/she has made full and final payment ?

until full payment has been made the vehicle isn't the seller to sell.

if the vendor isn't prepared to agree to this then walk away....

absolutely nothing wrong with buying a vehicle which has finance as long as the above procedure is followed.

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RKE

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After months of searching for our first MH found the perfect vehicle and negotiated a fair price. As its a private sale, I have just done a hpi check to be safe and it flags up outstanding finance on the vehicle. As its only 2 years old I guess this is not unusual?

Any advice as to my next actions? Do I need to be contacting the finance company to pay them or should I just walk away?

Hard at is may be after all this searching, if it were me, I would walk away..... The potential hassle involved just ain't worth it in my opinion!....
 

lorger

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the correct, as far as I'm aware, procedure is to agree a price, then ask the vendor to get a written statement of account from the finance company.

you then make payment to the finance house and pay the vendor the balance of the agreed price.

on no account allow the vendor to make payment to the finance house...how will you know he/she has made full and final payment ?

until full payment has been made the vehicle isn't the seller to sell.

if the vendor isn't prepared to agree to this then walk away....

absolutely nothing wrong with buying a vehicle which has finance as long as the above procedure is followed.

Pappajohn i dont know the legal ins and outs but if you paid off the finance company whats to stop the seller keeping the van thats why i arranged to pay mine while at his house. Just my thoughts on it.
 

lorger

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Hard at is may be after all this searching, if it were me, I would walk away..... The potential hassle involved just ain't worth it in my opinion!....

In my opinion its not a hassle and will be worth it if its the right van for you.

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pappajohn

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Pappajohn i dont know the legal ins and outs but if you paid off the finance company whats to stop the seller keeping the van thats why i arranged to pay mine while at his house. Just my thoughts on it.
an oversight Gerry :Blush: i just edited my post to that effect :thumb:
 

tonywolst

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Yes, as above, you need to pay the agreed price minus the finance settlement figure, if they disagree walk away with no hard feeling as you could be about to get shafted, make sure the settlement figure is valid, on the settlement statement there will be a valid till date, If they agree to the price -settlement figure you have no should have no worries, however because I'm the suspicious type (I used to sell HGV's for a living and I've heard them all) if it was me and hadn't been informed at the time of sale that money was owed on the vehicle I would walk away, to many doubts, what else arnt they telling me? and then knowing that some day I would hear myself saying 'I wish I'd never bought the bloody thing', even if at the very least I'd made them settle before I bought it off them!
Only my opinion but hope it helps.
 

RKE

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In my opinion its not a hassle and will be worth it if its the right van for you.

If it ain't hassle..... why did the 'seller' not declare the outstanding finance in the first place when a price for the sale was agreed?

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Minxy

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Whilst I totally agree that you should ensure you pay the finance company what they are owed, rather than give it all to the seller, that doesn't mean that the seller is deliberately setting out to deceive you or cannot be trusted. At the point that you agreed the price he/she may not have contacted the finance company to find out what's required, it may be their first HP vehicle sale so could easily not be aware of 'how it is done'. I can easily understand that this may be the case with some people who purchase their first new motorhomes through dealers and haven't a clue as to the consequences of taking out the dealer's finance - at the time they bought it they probably wouldn't be thinking of what would happen if they sold it before they had paid off the loan.

This is one of the reasons why I would NEVER use a dealer's finance to purchase a motorhome - it is much better to have the finance as a private loan, not 'attached' to the motorhome, you are then free to do what you want with it in the future and makes things much simpler, it also means than when you come to sell a motorhome, you don't have to settle any outstanding finance on it and take out another finance deal which inevitably means you're paying for interest on interest! If the loan isn't fixed on the motorhome you can just add to it to purchase another if that is what you want to do.
 

sedge

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Errrr - unless i was sure that a person answering my ad was really interested, and ready to part with their dosh - I don't think I'd mention it either - you can get a lot of tyrekickers even with private sales.

And then I'd say about the outstanding debt. But I wouldn't broadcast it to every Tom Dick or Harry who knocked my front door ....

I don't think we know at what stage the negotiations are, do we?

The prospective purchaser may have said they wanted to go home and think about it, or whatever ....
 

Popeye

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This is one of the reasons why [HI]I would NEVER use a dealer's finance to purchase a motorhome[/HI] - it is much better to have the finance as a private loan, not 'attached' to the motorhome, you are then free to do what you want with it in the future and makes things much simpler, it also means than when you come to sell a motorhome, you don't have to settle any outstanding finance on it and take out another finance deal which inevitably means you're paying for interest on interest! If the loan isn't fixed on the motorhome you can just add to it to purchase another if that is what you want to do.


I hear what you're saying. There are however many different ways to finance a motor-home. The beauty of taking dealer finance is that it is a tri-partied agreement, in as much as the dealer supplies the MH, the finance house supplies the loan and the customer agrees to re-pay the amount of the loan plus interest.

The protection in law derived from this type of agreement is far greater than any other be it lease or contract purchase, mortgage or even CASH.

So there are in fact many benefits to dealer finance.

The finance house register their interest in the vehicle and lodge that with equifax or HPI so that the Industry can establish true title in any negotiation.

As the law stands the true owner of the vehicle is the finance company until all payments have been made and it is therefore unlawful to sell that vehicle until all the payments have been made usually in the form of a settlement figure which under current law is the rule of 78ths plus 2.

This would not work in practice so the user of the vehicle usually puts the vehicle up for sale or indeed part exchange and it is at the completion of the sale when the outstanding finance is repaid.

The problem is, there are those who will sell the vehicle privately to an unknowing purchaser and not pay off the loan. This often goes unnoticed if the original borrower keeps up his payments.

If however the new purchaser attempts to sell the vehicle or even re-finance it then it will be flagged up as on Finance with X bank.

So I wouldn't worry that the seller has not mentioned it (yet) but an open dialogue must take place and arrangements made so that both parties are happy that all fees due are and have been paid and clean title passes.

It has already been said that this is best done at the place of handover so that all documentation and keys etc can be exchanged during the process. Failing that the process can and often is carried out at the Finance company offices or the parent Bank premises.

pm me if I can be of assistance........Griff

.
.

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the stig

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Yes there are some unscrupilous people out there, but that doesn't mean that these people are. I think for the sake of a telephone conversation with the sellers first, don't be put off and walk away. You can always do that later if things don't pan out properly. We bought a van (tugger) a few years back and it had HP still outstanding. It wasn't mentioned to us at first, and as previously posted from someone else I too would not say right upfront about outstanding finance. Perhaps they would genuinely settle up and think they may not need to tell the prospective buyers. Some people can be naive like that. However, luckily you do know so you can take preventative measures. Again as previous posts suggest, you make part payment to finance and rest to sellers. Easy. That is what I did, I actually took the sellar to the bank and did the whole transaction there.
If it's your dream M/H then it's worth a little effort.
 
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slobadoberbob

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The time to worry is

The time to worry is when the settlement figure is more than being asked for the motorhome.. this can happen in the early months or even first year of the HP agreement when there is the interest added to the loan so the value of the motorhome is less than the sum financed.

But have purchased cars that were on finance and used common sense and it worked out fine.

My son does it every day as a buyer for ' we buy any car.com ' just the buyer does not get his cheque until they have paid the fiance off... balance to seller.

Plenty of good advice given in the posts so will not add anything more.

Bob:thumb:
 

lorger

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If it ain't hassle..... why did the 'seller' not declare the outstanding finance in the first place when a price for the sale was agreed?

There could be a few reasons why but all you have to do is phone him and ask if there is outstanding finance if he says no then you walk away no hassle there if he says yes then you deal with it correctly again no hassle.

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pudseykeith

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Hi all.
i am suprised nobody has mentioned the growing problem of this type of loan.
Smallish loans are given and the loan is secured by the vehicle being sighned over to theone making the loan. ownership is not transfered back untill the loan is repaid. If the borrerer sells the vehicle and defaults on the repayments the company come to the new supposed owner and demands either full repayment plus costs or possesion of the vehicle.
I dont know what the answer is but beware It appears to be a growing problem. :cry:
Pudseykeith
 

Peter JohnsCross MH

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Get the seller to obtain a setllement figure in writing from Finance Company, agree price to be paid in total then get a Bankers Draft payable to Finance Company together with their bank account details.

This can then be posted to Finance Co or paid into their account at a Bank, get another draft for the balance payable to the seller which he can then pay into his bank at the same time.

Get a fully detailed invoice from seller stating free of all lien

Job done.

If seller not happy, walk!

Peter
 

joncris

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Many people, us included, take hire purchase to part fund a motorhome even if you dont need to. There is good logic behind this, basically consumer rights.

What you need to do is get the owner to get a settlement figure, you would then pay the agreed price minus the outstanding finance,which you pay directly to the finance company, in so doing you know nothing is outstanding.

Remember though that from the sellers point of view they will equally have a nervousness that you dont pay the outstanding finance so documentation/agrement needs to be watetight.

Pm me if you need any further advice.

Philk

Contrary to popular belief and provided you didn't buy from a 'guy in a pub' then the vehicle is yours (Good faith purchase). A finance company should but often don't apply for a court order to reposess & there's no guarantee it'll be granted which is why they 'll con you into handing it back or into paying them.

Also I bought a 20 year old RV which still had HP showing from a decade ago. Quite often firms fail to remove the flag

MY advice speak to a solicitor

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Carreraboy

Carreraboy

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Thanks for all the advice - I am fairly happy with the sellers at the moment and they appear genuine. I have a meet planned with them this week prior to final purchase and will be interested to see at what point, if at all they bring up the outstanding finance issue. If they don't then I certainly will !!!!!

Great to know there is a forum as active as this one and as a newbie no doubt will have more questions in the coming months.
 

philk

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Careraboy you have had good advice, Popeye has years of experience in finance and the motortrade, i head the trading srandards fair play charter, Peter also has years of experience in the area that you are discussing. Treat with disdain the 'dont take finance' people, we personaly dont need it but use it as protection.

I once refused to pay bank of scotland until they made Hymer sort out an issue, without those rights iwould have been toothless. Any advice you need pm me .

Philk
 
Jul 28, 2010
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After months of searching for our first MH found the perfect vehicle and negotiated a fair price. As its a private sale, I have just done a hpi check to be safe and it flags up outstanding finance on the vehicle. As its only 2 years old I guess this is not unusual?

Any advice as to my next actions? Do I need to be contacting the finance company to pay them or should I just walk away?
if the seller has not told you then walk away he can not be trusted

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