HPi outstanding finance

Discussion in 'Motorhome Chat' started by Carreraboy, Nov 6, 2011.

  1. Carreraboy

    Carreraboy Funster

    Joined:
    Nov 6, 2011
    Messages:
    28
    Likes Received:
    12
    Location:
    Gloucester
    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?
     
  2. Hayleylulu

    Hayleylulu

    Joined:
    Feb 17, 2008
    Messages:
    5,392
    Likes Received:
    3,889
    Location:
    Full timing in the van
    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
     
    • Like Like x 1
  3. haganap

    haganap Funster Life Member

    Joined:
    Dec 5, 2007
    Messages:
    11,069
    Likes Received:
    13,677
    Location:
    Heavan
    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:
     
    • Like Like x 3
  4. simsy56

    simsy56 Funster

    Joined:
    Nov 6, 2008
    Messages:
    3,002
    Likes Received:
    12,298
    Location:
    Ramsey, Isle of Man.
    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
     
  5. Jaws

    Jaws Funster Life Member

    Joined:
    Sep 26, 2008
    Messages:
    18,345
    Likes Received:
    21,694
    Location:
    Narrfoook
    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:
     
  6. jhorsf

    jhorsf Read Only Funster

    Joined:
    May 15, 2009
    Messages:
    9,157
    Likes Received:
    8,067
    Location:
    DERBYSHIRE
    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:
     
  7. lorger

    lorger Funster

    Joined:
    Jul 11, 2008
    Messages:
    6,190
    Likes Received:
    7,559
    Location:
    Dumfries
    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
     
    • Like Like x 3
  8. philk

    philk

    Joined:
    Jul 21, 2011
    Messages:
    173
    Likes Received:
    50
    Location:
    Lancs
    Hpi

    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
     
  9. pappajohn

    pappajohn Funster Life Member

    Joined:
    Aug 26, 2007
    Messages:
    29,471
    Likes Received:
    16,920
    Location:
    YO11 2BD
    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.
     
    • Like Like x 1
  10. RKE

    RKE Read Only Funster

    Joined:
    Sep 21, 2011
    Messages:
    94
    Likes Received:
    82
    Location:
    Somerset
    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!....
     
  11. lorger

    lorger Funster

    Joined:
    Jul 11, 2008
    Messages:
    6,190
    Likes Received:
    7,559
    Location:
    Dumfries
    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.
     
  12. lorger

    lorger Funster

    Joined:
    Jul 11, 2008
    Messages:
    6,190
    Likes Received:
    7,559
    Location:
    Dumfries
    In my opinion its not a hassle and will be worth it if its the right van for you.
     
  13. pappajohn

    pappajohn Funster Life Member

    Joined:
    Aug 26, 2007
    Messages:
    29,471
    Likes Received:
    16,920
    Location:
    YO11 2BD
    an oversight Gerry :Blush: i just edited my post to that effect :thumb:
     
  14. tonywolst

    tonywolst Read Only Funster

    Joined:
    Jul 22, 2011
    Messages:
    81
    Likes Received:
    28
    Location:
    Shropshire
    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.
     
    • Like Like x 1
  15. RKE

    RKE Read Only Funster

    Joined:
    Sep 21, 2011
    Messages:
    94
    Likes Received:
    82
    Location:
    Somerset
    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?
     
  16. Minxy Girl

    Minxy Girl Funster Life Member

    Joined:
    Aug 22, 2007
    Messages:
    8,560
    Likes Received:
    9,930
    Location:
    E Yorks
    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.
     
  17. sedge

    sedge Funster

    Joined:
    Jul 7, 2009
    Messages:
    4,501
    Likes Received:
    3,859
    Location:
    Nr Jct 3 M6
    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 ....
     
  18. Popeye

    Popeye Funster

    Joined:
    Sep 5, 2011
    Messages:
    7,712
    Likes Received:
    16,927
    Location:
    New Forest

    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

    .
    .
     
  19. the stig

    the stig Funster

    Joined:
    Oct 10, 2009
    Messages:
    1,186
    Likes Received:
    687
    Location:
    Grimsby
    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.
     
    Last edited: Nov 7, 2011
  20. slobadoberbob

    slobadoberbob Read Only Funster

    Joined:
    Jun 1, 2009
    Messages:
    6,159
    Likes Received:
    1,970
    Location:
    Kent, garden of England
    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:
     
Loading...
Similar Threads
  1. crabman
    Replies:
    5
    Views:
    383

Share This Page