[rocky79]

Hello, new on here and in the process of buying my first Mini Cooper S from a private deal.

The car has some outstanding finance on it, the owner told me about it (i had done an HPI check anyway). What is the easiest and safest way of settling this.
The owner has said that I get a bankers draft made out and pay it to the Mini finance company and get proof of doing this, he will do the same (balance is higher than the amount he is selling for by a few hunderd quid).

Thing is, how do I know that the amount is settled in full and how do i know he wont do a runner with the car/crash it etc before i collect it having deposited the cheque?

This must be a fairly common occurence? Any suggestions?

Cheers

[Scrogg]

A Bankers Draft is considered cash, as it is guaranteed to clear, so you do not need to wait for it to clear before you can take the car.

Ask for a photocopy of the settlement letter, along with both cheques clearly made out to MINI as your proof that it has been paid.

[rocky79]

Thanks Scrogg, what it i pay the cheque in and then I go to collect the car and he isnt about anymore, can i then cancel the bankers draft?

[Scrogg]

I don't understand. Why, and where, are you paying the cheque in?

The finance is in the sellers name, so you should be handing it to him when you collect the car.

[iain cooper]

are you meaning that the seller needs your cash first so that he can clear off the finance to release the car to you ?

if this is the case you should not get involved with this.

the car is in the sellers name and if you clear off the finance for him it is still his car !!

he needs to clear off the finance himself first, then you pay him the cash for the car and get a receipt and paperwork and take it away.

the fact that he has outstanding finance is his problem and he should arrange to settle it before trying to sell the car.

[rocky79]

He has asked me to pay it into the Mini Financial Services account - Royal Bank of Scotland and bring proof that I have done this.

If I gave him the cheque, ive no guarantee that he will pay the amount off.

Are you saying make the cheque out to Mini Finance, give the cheque to him to pay in and take the car?

Sorry if im being stupid ive never bought a car in this way before.

[Snowie]

Personally I would not touch it until he can show that the finance is paid off and that your HPI check confirms this.

It is his responsibility to clear the finance and I would never pay off someone else's finance deal.

IMHO you should walk away from this until all finance is clear - hard to do if you want the car but this sounds too risky to move forward with - there could be tears here, it smells like some of the e-bay scams that have been around recently

Just my personal thoughts

[Scrogg]

As Iain has just said, it is the responsibility of the seller, not the buyer, to pay off the outstanding finance, but it's not always as simple as that as most people don't have that sort of money lying around.

If it was me, I would meet the seller at a branch of RBS (if that is where payments to MINI are made?) where you can both see that the full amount needed to settle the finance is paid in (Bankers Drafts do not need time to clear like Personal Cheques) then you can take the car away then and there.

[iain cooper]

agree with both Snowie and Scrogg on this one, you need to be very careful with this.

how much money are we talking about ?

why does he not want to trade the car in ?

can you trust him !!!!

[Scrogg]

Alternatively, if you can't pay the money directly into the bank (as I think will most likely be the case) I would meet the seller at a Post Office, where you could send the settlement letter and both Banker's Drafts by Recorded Delivery.

As long as you both take photocopies of the letter and both Drafts before sending them, and you give him a copy of the receipt the Post Office will give you, there is, again, no reason why you can't take the car away then and there.

[rocky79]

Its 11.5k, so a lot of cash.

I know where he lives and all that, but its easy enough to rent a propery.
Only way looks like going direct to the bank with him, does anyone have a telephone number for the mini finance people and I will check with them that the details are ok.

I wouldnt have thought many people can just pay 11k off a car, just like that if they have a loan for it in the first place. He isnt trading in as he wants to clear the debt, but good question why isnt he
giving the car back and settling with Mini?

[Scrogg]

Quote: Originally Posted by rocky79 (original)

but good question why isnt he giving the car back and settling with Mini?

Surely that's obvious?

If a private sale isn't getting him enough to pay off the finance, a trade price from a MINI dealer certainly won't.

[rocky79]

Just spoken to Mini Finance, all teh details he gave me check out, except for the balance as they couldnt tell me that. So pending seeing the settlement document, I will get him to come with me to the local RBS pay the cheques in and then take the car away.

Cheers for the advice, seems to have cleared this all up.

Looking forward to getting the car now!

[Martin F]

Quote: Originally Posted by Scrogg (original)

A Bankers Draft is considered cash, as it is guaranteed to clear, so you do not need to wait for it to clear before you can take the car.

I don't want to be unhelpful but bankers drafts are not foolproof. There have been cases where the bank has refused to pay because the draft was stolen or forged. In this case it may not be a problem, but I would not let a buyer take a car away on the strength of a bankers draft unless I had had a photocopy in advance and been able to telephone the issuer to confirm its validity.

[Scrogg]

Quote: Originally Posted by Martin F (original)

I don't want to be unhelpful but bankers drafts are not foolproof. There have been cases where the bank has refused to pay because the draft was stolen or forged. In this case it may not be a problem, but I would not let a buyer take a car away on the strength of a bankers draft unless I had had a photocopy in advance and been able to telephone the issuer to confirm its validity.

All true (I had a feeling you'd be along as soon as money was mentioned! ) but in this case I'm fairly sure rocky79 isn't planning on using a forged Bankers Draft (and I'm certain he didn't steal one that just happened to be made out to the right people and for the correct amount! ) if only by the fact that he's announced what he's doing on a public forum!

[Martin F]

As Scrogg feels I always turn up when money is mentioned ( and on reflection I think he is right) here is my offering.

Firstly ask the seller to get a letter from Mini Finance confirming the settlement figure. This is so that you can be sure what is paid in clears the finance. If you are really cautious you get a photocopy and ring Mini Finance to confirm the letter is genuine.

Then you got to the bank you armed with your bankers draft and the seller with cash and you pay in the bankers draft plus cash to the credit of Mini Finance. The reason the seller has to produce cash is you don't want him to bounce a personal cheque or a dodgy bankers draft.

If the seller wants to go through the routine described in my previous post with your bankers draft, that is up to him.

You then drive off in the car. BTW if the amount to clear the finance has changed slightly between the letter from Mini Finance and them receiving the payment, the difference will be so small to be something you could pay if the seller does not. You will want a copy of the letter from Mini Finance confirming the clearance of the finance in due course.

I would confirm these arrangements to the seller in writing to be on the safe side

[Martin F]

Oh, and one more thought for the ultra cautious, you should confirm Mini's bank details direct with them so that you don't accidentally send the money to the seller's mate's bank account.

[rocky79]

Cheers Martin, Already been on the phone to Mini Finance to confirm the bank details (very helpful they were too) and they did check out ok.

From speaking with the seller he is going to pay off his amount in advance and get the details sent through that this has been done, so when I then go to pay in my draft it should be the final amount.

Will speak to the the seller again tomorrow about the set up discribed, seeming like a lot of hassle but saving a bit of cash over buying from Mini direct, so hopefully will be worth all this hassle.

Its hard to beleive some finance company hasnt set up a some sort of deal brokerage to facilitate this and eliminate the risk for both parties. Afterall the majority of people will be geniune and have to go through all this, go to the bank, watch people post cheques etc etc.

[EXPIREDDATA]

Guys,

Beware - Bankers Drafts are not as safe as you would think. I have heard several reports where people have accepted these - only to find out several weeks later that they were either forged or stolen and that the banks were demanding the money back.

I recently sold my Nissan 350Z roadster privately. At the time of selling, I still owed 20K to the finance company. The purchaser went with me to the bank and obtained a bankers draft for the remainder of the finance in front of me - with it made out to the finance company. We also signed some simple paperwork as an agreement /record of the transaction. I then posted the BD to the finance company in front of the purchaser and gave him the keys.

My sale went smoothly and without any problems.

So if i was you - i'd get the seller to give you the cash for the extra outstanding finance, and you then get a bankers draft fot the whole of the finance made out to the finance company. You can give him the bankers draft when he gives you the keys and signs over the DVLA paperwork.

[MINIJUS]

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