[nickscho]

Rocky79 - My partner works for a finance company and has advised the following:-

- Double check what sort of finance agreement it is. You need to check on the HPI check what sort or finance product it is. i.e Hire Purchase or say Lease Purchase - the title of the goods is automatically transferred on settlement. On a Lease IT IS NOT - YOU CAN NEVER BECOME THE OWNER OF THE GOODS ON A LEASE AGREEMENT. However you can settle a lease to pay the future rentals off early. This is to either hire the vehicle in the secondary rental stage or to return the goods.

Once you have clarified the above you need to meet and sort out the paper work:-

- Complete the V5 - Keep the V5 doc and sending it off yourself so you know its been done - dont rely on the hirer to get round to it.
- Hirer compiles sale receipt. Ensure that it advises that he has sold the vehicle (full details) to you and that on the full amount of ...... title of the goods will pass to you and that he has receipt of the funds.
- Request original settlement letter or a fax direct from the Finance Company to ensure the exact amount is paid in full. Be wary of a copy of the letter is this can be scanned and altered. The hirer will need to contact the Finance company for this as the Finance company are not able to divulge this information to a third party due to DPA.
- As mentioned previously meet at the bank and both pay the combined funds into the bank account of the Finance Company. Ensure the agreement number is used as the reference number so they can allocate the payment from the bank account on to the agreement. This will ensure the full settlement has been paid in full. Keep the reciept you get from the bank as proof of payment, showing the amount paid and the bank details it is paid into.
- It does take several hours usually for a finance company to locate payments in their receipt accounts due to the amount of payments they receive daily. If the hirer calls in the afternoon they will be able to locate the payment from whats been paid in that morning and provide clearance.


PLEASE BE AWARE

- A BANKERS DRAFT DOES NOT CLEAR IMMEDIATELY. A Bankers Draft can be cancelled within 3 hours of being raised. MY PARTNER HAS ADVISED AT THE COMPANY WHERE SHE WORKS IT IS COMPANY POLICY THAT A BNKERS DRAFT IS 3 DAYS TO CLEAR. This is because it can take 3 days to be returned from the bank unpaid.

- If you do the above you will have legal title to the vehicle as you can provide evidence that you have purchased the goods and owned the vehicle.

I hope I have helped.

[iain cooper]

Quote: Originally Posted by MINIJUS (original)

what i have always done is turn up to collect the car ring up the finance company from your phone get the number yourself pay on your debit card then get the seller to ring and confirm its cleared then take your new car

J

if this method is possible, it seems to me to be the most straightforward and safe for both parties concerned ?

[Scrogg]

Quote: Originally Posted by iain cooper (original)

if this method is possible, it seems to me to be the most straightforward and safe for both parties concerned ?

It should be possible, and certainly seems risk-free

(Can't believe I didn't think of it! )

[laura f]

We have done a similar thing through our mini dealer previously, we sold a car that had outstanding finance on it via a private sale, the buyer paid Mini Finance via the dealer, receipt given to buyer, keys released once Mini and the dealers finance dept had given the all clear. We gave the keys to the dealer when the money was initially handed over, and all went smoothly.

[rocky79]

Quote: Originally Posted by nickscho (original)

Rocky79 - My partner works for a finance company and has advised the following:-

- Double check what sort of finance agreement it is. You need to check on the HPI check what sort or finance product it is. i.e Hire Purchase or say Lease Purchase - the title of the goods is automatically transferred on settlement. On a Lease IT IS NOT - YOU CAN NEVER BECOME THE OWNER OF THE GOODS ON A LEASE AGREEMENT. However you can settle a lease to pay the future rentals off early. This is to either hire the vehicle in the secondary rental stage or to return the goods.

What if its a PCP - is that then similar to the HPI situ as im assuming the settlement figure the guy is quoting from his letter woudl cover the balance of the finance and the balloon payment? He bought the car just over a year ago for about 16k, i think he said 12k oustanding... I cant see the 12k being pure payments exlcuding a balloon payment?

Meeting with him early next week to go through the details - needless to say if im not happy with any of the paperwork, I wont be buying.

Assuming he can give the finance company permission to give me details over the phone there and then if im not happy/unsure of anything.

[Scrogg]

Quote: Originally Posted by rocky79 (original)

What if its a PCP - is that then similar to the HPI situ as im assuming the settlement figure the guy is quoting from his letter woudl cover the balance of the finance and the balloon payment?

A settlement figure is always the total amount needed to settle the agreement in full, regardless of what type of agreement it is.

Quote: Originally Posted by rocky79 (original)

I cant see the 12k being pure payments exlcuding a balloon payment?

It isn't.

[nickscho]

Scrogg PLEASE BE CAREFUL when giving advice. You can not settle all types of finance agreement in full and become the owner e.g. if you have mini-drive or mini-lease. The hirer simply settles the primary rental period and the agreement would go into the secondary rental period. This can also be double checked on the mini`s own web site where it gives the full details of the finance packages they do and the benefits.

If the finance agreement is a PCP (Personal Contract Purchase) the agreement would be settled in full and the hirer becomes the owner.

[Martin F]

Quote: Originally Posted by nickscho (original)

Scrogg PLEASE BE CAREFUL when giving advice. You can not settle all types of finance agreement in full and become the owner e.g. if you have mini-drive or mini-lease. The hirer simply settles the primary rental period and the agreement would go into the secondary rental period. This can also be double checked on the mini`s own web site where it gives the full details of the finance packages they do and the benefits.

If the finance agreement is a PCP (Personal Contract Purchase) the agreement would be settled in full and the hirer becomes the owner.

In these circumstances I have no problem with Scrogg's advice. It is obvious that as the settlement figure exceeds the market value that the finance company has no residual equity in the vehicle and therefore it is simply not realistic to entertain the notion that this could be some sort of operating lease. If the figures were different then I accept this might be a possibility but the advice has to be read in the context of this particular thread.

[nickscho]

Martin F - Thank you for your feed back, however the advice I have given is relevant in this particular thread.

You advise that it is obvious that the settlement exceeds the market value so the finance company has no residual equity in the vehicle and therefore it is not very possible that this is a lease. The settlement could be inflated due to outstanding arrears and overdue interest charges.

I still stand by my advice that you can not settle all finance agreements as it depends on the finance product taken out.

I personally would sooner give a full comprehensive guide for people and not assume all members are fully aware of finance packages. This hopefully ensures that as members we all look after each other and protect each other to the best of our abilities.

I have been viewing this forum for some time and got some really good advice and so wanted to pass on my help where I could.

[Scrogg]

Quote: Originally Posted by nickscho (original)

Martin F - Thank you for your feed back, however the advice I have given is relevant in this particular thread.

O.K, I resisted the temptation to post anything when you shouted at me (CAPS LOCK is considered shouting) and basically accused me of not knowing what I'm talking about (despite 10 years experience selling cars and finance that would say otherwise) but this time I can't...

This thread is about rocky79 wanting to buy a car that has outstanding finance from a private seller. He has done an HPI on the car and is fully aware of the type of finance that is outstanding, so even mentioning MINI Drive and MINI Lease (which isn't actually available to private buyers) in this thread is not relevant.

Quote: Originally Posted by nickscho (original)

I still stand by my advice that you can not settle all finance agreements as it depends on the finance product taken out.

You're right, they can't, but the the main three (I have yet to meet anyone, MINI owner or MINI dealership Business Manager, that has taken delivery of/supplied a MINI on MINI Drive) that are offered by MINI to private buyers (Hire Purchase, Lease Purchase and PCP) all can.

As we had already established that the finance on this particular car is a PCP (a type that can be settled resulting in transfer of ownership) when I posted "A settlement figure is always the total amount needed to settle the agreement in full, regardless of what type of agreement it is" I was correct and it was unnecessary to tell me to be careful when giving advice.

Quote: Originally Posted by nickscho (original)

I personally would sooner give a full comprehensive guide for people and not assume all members are fully aware of finance packages. This hopefully ensures that as members we all look after each other and protect each other to the best of our abilities.

That is very commendable, and I for one admire you for wanting to do so, but this thread is about a specific car, not a general guide to different types of finance. All you have done is unnecessarily confuse things

[simeds]

another way of course is CHAPS, that s what my buyer used.

[Scrogg]

I tried that with MINI once. The customer and I then spent over 3 hours drinking coffee whilst we waited for them to be able to tell us the money had made it to their account!

[simeds]

they just liked your company

[Jamie H]

Rocky, this wouldn't be a Dark Silver Cooper S in Chorley by any chance would it?

[rocky79]

Quote: Originally Posted by Jamie H (original)

Rocky, this wouldn't be a Dark Silver Cooper S in Chorley by any chance would it?

No its not im afraid.

[Scrogg]

Quote: Originally Posted by simeds (original)

they just liked your company

You've met me twice now, and even sat opposite me at lunch, so you should know how unlikely that is!

[GR33NIE]

Scrogg - Spot on mate I worked for a motor finance company for five years and completley agree with what you've said!

[rocky79]

So far so good, just a bit of an update. Got the settlement letter, seen/have proof of payment of the difference balance, and got my proof of payment via bankers draft.

And have a Shiny Cooper S sat of my drive way.

Just need to give Mini a call on Friday/ Monday and get the finance all clear. Then I will be 100% happy.

Thanks for all the advice guys.

[Scrogg]

Great news!

Glad everything went smoothly

Now where are the pictures?

[rocky79]

Quote: Originally Posted by Scrogg (original)

Now where are the pictures?

As soon as I get it nice and clean will put some on. - is there s a specifc section for pics on here?