Buying a motorhome with finance on it.

Discussion in 'Motorhome Chat' started by Movin' on, Jun 7, 2010.

  1. Movin' on

    Movin' on Read Only Funster

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    I have found a motorhome which I like and is being sold privately. It has finance on it and what the seller is advising is that he will ask the finance company for a final statement which he will give to me, I will pay off the finance and give him the balance of the agreed price.
    Has anyone else done this and is it a safe thing to do. What I intend to do is ask for a bill of sale at exchange of money stating cash for X pounds and cheque for XY pounds to the finance company. When he has proof of the finance payment he will release the vehicle to me. CAN ANYONE SEE ANY PITFALLS WITH THIS ARRANGEMENT-----------hAS ANYONE DEALT WITH THIS PROBLEM BEFORE?
    Thanks in anticipation, Movin' on (Adrian)
     
  2. vwalan

    vwalan Funster

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    car dealers do it all the time ,best you speak to the finance company yourself . shouldnt be a problem must happen hundreds of times a day.
    cheers alan.
     
  3. ronniec26

    ronniec26 Read Only Funster

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    Risky

    This sounds too risky to me, There's always another motorhome....
     
  4. ddavewoods

    ddavewoods Read Only Funster

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    the seller obviously has to have the funds to settle the finance agreement, he cant do that if no one buys the vehicle. as the previous poster said it must happen all the time.

    just make sure the payment to the finance company is made or the vehicle remains theirs.
     
  5. Movin' on

    Movin' on Read Only Funster

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    Thanks Alan, I suppose I'm more worried that I'll pay off somebodys' finance and then can't access the vehicle afterwards. I'm hoping the bill of sale will cover me as the owner !
     
  6. vwalan

    vwalan Funster

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    when i had the garage we rang the finance company you sometimes get a bonus paying off early ,but be carefull some put a penalty clause on . ask lots .you should be able to sort it quickly . dont spend untill you are happy . remember you wont be the first to do it this way .
     
  7. pappajohn

    pappajohn Funster Life Member

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    i agree with alan....

    ensure the settlement figure is in writing from the finance house on their headed paper before making payment.
    the seller will be told on the phone what is owing but will also get a letter in a few days... he can do this well in advance of a sale and will be current for one month.
    make sure the figure includes ALL fees including the next due payment and the final 'option to buy' payment...without that being paid the motorhome will simply go back to the finance company as the owner was just hiring it, not buying.
    to make a payment to the financiers it may be in your interest to ring them yourself on the number on the letter, explain whats happening and make the payment by credit/debit card.
    paying by credit card will give you some comeback if anything does go wrong..

    to keep things sweet i'd make the finance payment and when the finance release letter arrives then, and only then, make the balance payment to the seller.

    make sure you get a copy, at least, of the finance release document.
     
    Last edited: Jun 7, 2010
  8. nifty fifty

    nifty fifty Funster

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    hi i own a garage/car sales and as said befor this happens all the time. however you should do it so that the cleared payment and your recieving of the motorhome is done at the same time. then both partys have no risk.as the private seller can change there mind. if i buy we take delivery from owner and pay them any monnies due. prev agreeing settlement with finance co.this is settled by transfer otherwise we have no title and can not resell.
    glyn
     
  9. Johns_Cross_Motorhomes

    Johns_Cross_Motorhomes Trader - Motorhome & Accessory Sales

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    Ask the seller for a settlement figure from the finance company with the agreement number and vehicle details on it.

    Get a bank draft payable to the finance company and one for the balance payable to the seller.

    Go to a bank and and bank the draft for finance company into their account and get a receipt, give the draft for the balance to the seller.

    Get seller to fill out V5 showing transfer to you and the post to DVLA keeping green slip.

    Peter
     
  10. lorger

    lorger Funster

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    Hi we did this when we bought our mh we agreed a price for mh seller was upfront from start about having finance on it he called the finance company gave them permmision to talk to me and gave me a password so i could call we did this company told us how much would be outstanding on day of purchase which could be paid with switch or visa.

    So when we went to pick up mh we handed over cash and phoned the finance company from sellers house paid over the phone with switch finance company gave seller ok and away we went with a full written reciept from the seller for the full amount.

    Few things id make sure of before going ahead meet seller at his house check its same address as log book if not ask for a utillity bill with name and addy.

    When dealing with finance company you phone them from a number on their website not from number he gives you as could be false to get details.

    Make sure you do a hpi check on the vehicle can get them from rac for about £7 before handing money over this should tell you there is finance and who its with and account number then you can check if same as seller has given you.

    If your not sure of anything then walk away sounds like a mine field but if your careful of what your doing then should be a doddle.

    Gerry
     
  11. pappajohn

    pappajohn Funster Life Member

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    obviously cant argue with the trade and as i've never done it, my way seemed logical and safe and the way i would do it if i had to.:Blush:

    now i know different, :thumb:
     
  12. crazylazy

    crazylazy Read Only Funster

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    Finance on Motorhomes

    Yes..If you see a previous quote of mine, I bought a motorhome and the seller didn't tell me he had finance on the vehicle so I had a financial check done, and it came up as having £30,000 on it, I contacted the finance company direct and said I would pay the finance off ,it may sound strange but I met with the seller and told him the deal would not go through unless he authorised the finance company that I could pay the debt off and I told the seller I would want to take the vehicle away that day take otherwise you are paying the debt for the owner and he still has the vehicle. I was sitting with the owner when he had the conversation with the finance company and the finance company gave him a figure at the same time I spoke with the finance company to confirm the settlement figure. I came away with the vehicle, the log-book was sent of and I had signed with the seller to say I would pay him the difference after evrything with the finance comany was settled. I had a receipt from the finance company that I had settled the debt on the basis I was buying the vehicle and had possession of it, when the finance was settled I then sent the cheque to the seller for the difference. I had already got an agreed wording for the bill of sale that I would pay the finance and the difference and that the vehicle was purchased. I had the upper hand and I think thats it very important with this situation. Check whose name the finance is in. best of luck
     
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