we have looked at a nice van , but , we are told by the owner the van is still subject to finance , but that they will pay it off when we give them the money . is this right ?, are they able too sell it ? what would happen if they didn t pay it all off ?
finance help ?
- Thread starter Sue_Holland
- Start date
Not much help, but I would walk away, think you'll find if they dont pay it off (do you trust them to pay it off) the van is not legally yours
Kev
Kev
Walk away. The van belongs to the finance company until the finance is paid off. It is illegal to sell the van as the "owners" do not own it. I speak from experience having once bought a car privately not knowing the previous owner still owed finance on it. The finance company came to me - literally knocked on the door! and explained the situation. Worst scenario was that I would lose the car and the money I paid. Luckily the previous owner paid up after I visited him and explained the situation.
Dave
Dave
Parksy
Moderator
Hi Sue
The advice to walk away is sound because the keepers who owe money to the finance company do not have the legal right to sell the caravan.
Having said that have you considered contacting the finance company who actually own the caravan direct to ask them for a settlement figure if you bought the caravan from them?
It seems to me that the people who are trying to sell the caravan may be struggling to pay off their debt so if you bought directly from the finance company you could do both them and yourself a favour.
Before you consider this ensure that the caravan is in good and safe condition, free from damp or mould and has a full service history.
The advice to walk away is sound because the keepers who owe money to the finance company do not have the legal right to sell the caravan.
Having said that have you considered contacting the finance company who actually own the caravan direct to ask them for a settlement figure if you bought the caravan from them?
It seems to me that the people who are trying to sell the caravan may be struggling to pay off their debt so if you bought directly from the finance company you could do both them and yourself a favour.
Before you consider this ensure that the caravan is in good and safe condition, free from damp or mould and has a full service history.
Hi,
I think the crime is called something like CONVERSION. No problem if the vendor does pay off his debt.
There is (was)a clause in HP agreements, that if payments (including the deposit) equal at least half the purchase price, and the vehicle is in good condition, then the "owner" can return it to the lender, with nothing left to pay. My car dealer did not know that. We returned a car, only nine months old.
"There's nothing wrong with it!" said the bloke collecting it.
"Thats right".
"So why are you returning it?"
"We just don't want it anymore" (My wife had just bought TVR, much nicer than a Yugo)
About six weeks later, the finance company wrote to say that they had sold the car at auction, at a loss of
I think the crime is called something like CONVERSION. No problem if the vendor does pay off his debt.
There is (was)a clause in HP agreements, that if payments (including the deposit) equal at least half the purchase price, and the vehicle is in good condition, then the "owner" can return it to the lender, with nothing left to pay. My car dealer did not know that. We returned a car, only nine months old.
"There's nothing wrong with it!" said the bloke collecting it.
"Thats right".
"So why are you returning it?"
"We just don't want it anymore" (My wife had just bought TVR, much nicer than a Yugo)
About six weeks later, the finance company wrote to say that they had sold the car at auction, at a loss of
It really annoys me when people give incorrect and very poor advice and someone loses out on a potentially good caravan. The owner has told you and more than likely the finance company are aware that the caravan is being sold.
The finance company have NO issue with you selling a caravan still on finance as long as they are paid immediately on recipt of funds.
We have done this on two different occasions and every one has walked away happy. On both occasions the buyer paid the outstanding balance direct to the HP company by credit or debit card and then paid the balance straight into our account with out any problem.
The HP company then sent a letter to the new buyer and the seller informing them that the balance on the HP had been paid in full.
If you can speak to the finance company direct and pay off the balance by credit or debit card, go for it!
The finance company have NO issue with you selling a caravan still on finance as long as they are paid immediately on recipt of funds.
We have done this on two different occasions and every one has walked away happy. On both occasions the buyer paid the outstanding balance direct to the HP company by credit or debit card and then paid the balance straight into our account with out any problem.
The HP company then sent a letter to the new buyer and the seller informing them that the balance on the HP had been paid in full.
If you can speak to the finance company direct and pay off the balance by credit or debit card, go for it!
Read sue's post again Ian.
She says 'THEY will pay it off when WE GIVE THEM THE MONEY'.
If you would be happy handing over a large sum of money trusting strangers to pay off the outstanding debt you could hardly have a reason to whinge if you got ripped off.
I'm with the others, don't hand any money over.
She says 'THEY will pay it off when WE GIVE THEM THE MONEY'.
If you would be happy handing over a large sum of money trusting strangers to pay off the outstanding debt you could hardly have a reason to whinge if you got ripped off.
I'm with the others, don't hand any money over.
There is nothing to stop the buyer paying the finance company ad a balance to the seller.
eg
Caravan for sale at
eg
Caravan for sale at
I agree that the way to buy it is with the full knowledge of the finance company - settling the outstanding debt direct (eg. by debit card over the phone in the seller's presence).
I have spent more years in the finance industry than I care to recall.
All the answers above are each correct in part.
You will only know the correct answer when you determine if the finance is HP or personal loan.If it is a personal loan then they can pass clean title even if they do not pay off the finance.With an HP agreement the hirer cannot sell it and pass clean title until the finance has been paid.So if you pay them and they do not clear the debt the fianance company can and will claim it back.Your only recourse then would be to persue the vendor through the courts.
I would be unhappy to proceed if on HP and would only consider doing the deal if I had written confirmation of the settlemnt figure and its date of validity and paid the finance company myself bankers draft sent recorded delivery.
The topic of clean title is a minefield for example if a bonafide caravan dealer sells you a van that is then found to have been stolen they will have passed clean title as they as a dealer are responsible to ensure title.
All the answers above are each correct in part.
You will only know the correct answer when you determine if the finance is HP or personal loan.If it is a personal loan then they can pass clean title even if they do not pay off the finance.With an HP agreement the hirer cannot sell it and pass clean title until the finance has been paid.So if you pay them and they do not clear the debt the fianance company can and will claim it back.Your only recourse then would be to persue the vendor through the courts.
I would be unhappy to proceed if on HP and would only consider doing the deal if I had written confirmation of the settlemnt figure and its date of validity and paid the finance company myself bankers draft sent recorded delivery.
The topic of clean title is a minefield for example if a bonafide caravan dealer sells you a van that is then found to have been stolen they will have passed clean title as they as a dealer are responsible to ensure title.
602. the clause you refer to is in the industry known as halves and thirds as there are in fact two points at which the merchandise can be just handed back.It appears in all HP agreements as they are controlled by the Consumer Credit Act 1973.
When you buy something on HP dont assume it is actually HP, some car dealers who have dealer finance,you are taking a personal loan to get round the thirds and halved clause.
I have cleared finance on caravans before and as long as you pay the HP co direct there is no problem.
I would also advise a CRiS check as well.
If the seller has disclosed ther is HP, then they should be happy to let you pay direct, If they insist you pay the purchase price to them in cash, walk away
I have cleared finance on caravans before and as long as you pay the HP co direct there is no problem.
I would also advise a CRiS check as well.
If the seller has disclosed ther is HP, then they should be happy to let you pay direct, If they insist you pay the purchase price to them in cash, walk away
Totally disagree with peter@wolves as the advice is wrong if the correct steps are taken. You may be missing out on a great deal. As per Plotter, pay the outstanding balance direct to the finance company by debit or credit card and pay the balance to the seller. No problem.
I agree with those who say "walk away".I wouldnt touch this with a barge pole so to speak.There are plenty of nice vans to be had without the hastle of who actually owns the thing.
Cheers Richard
Cheers Richard
Hi Sue
Personally , I too prefer the walk away and buy another day.
However, if you are intent on puchasing this caravan it is essential you are in the driving seat on finalising the finance deal. Equally important make sure the current keeper correctly passes legal title to you at the same time you settle his debt.
Also I'd do an HPI and CRIS check too.
Phew , is it really that good a caravan???
Cheers
Dustydog
Personally , I too prefer the walk away and buy another day.
However, if you are intent on puchasing this caravan it is essential you are in the driving seat on finalising the finance deal. Equally important make sure the current keeper correctly passes legal title to you at the same time you settle his debt.
Also I'd do an HPI and CRIS check too.
Phew , is it really that good a caravan???
Cheers
Dustydog
Hi Sue,
We bought a van from a chap who had bought it on HP and then found his teenagers didn't like caravanning and he didn't see the point in struggling with the repayments. Not only did we get a nearly new van, we part exchanged it two years later for what we paid for it.
The seller was very up front, showed us all the paperwork etc. for the HP, he contacted Black Horse I think it was, who in turn spoke to us and we paid the money to Black Horse and the remainder to the seller. No problem whatsoever.
If the seller really wants to sell he will agree to this and it would be a shame to be put off if you've found a van you like.
I'd put the option of you paying off the HP to him and if he doesn't want to have an honest and open transaction I would think twice.
We bought a van from a chap who had bought it on HP and then found his teenagers didn't like caravanning and he didn't see the point in struggling with the repayments. Not only did we get a nearly new van, we part exchanged it two years later for what we paid for it.
The seller was very up front, showed us all the paperwork etc. for the HP, he contacted Black Horse I think it was, who in turn spoke to us and we paid the money to Black Horse and the remainder to the seller. No problem whatsoever.
If the seller really wants to sell he will agree to this and it would be a shame to be put off if you've found a van you like.
I'd put the option of you paying off the HP to him and if he doesn't want to have an honest and open transaction I would think twice.
Dont put put off about the HP.At least he told you,do as Timbo has said and deal directly with the HP company if doesnt want to do this then walk away.
I have bought a motorbike and a car when the owner had outstanding HP and dealt directly with the Finance company and got very good bargains both times got a price between trade and forecourt,even got offered finace?
You'd be surprised how many people sell without permission as not everyone can afford to pay outright,even a personal loan for a caravan is owed by the bank.
I have bought a motorbike and a car when the owner had outstanding HP and dealt directly with the Finance company and got very good bargains both times got a price between trade and forecourt,even got offered finace?
You'd be surprised how many people sell without permission as not everyone can afford to pay outright,even a personal loan for a caravan is owed by the bank.
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