Hire Purchase-s/h car

In the process of buying a s/h car for my Sister, lad selling it says he has HP on it and will use the sell proceeds to clear it. I've meet the seller at his home and viewed the car, test drove, checked it out etc and am happy with it. The sellor appears to be a genuine guy and needs to clear the HP as it is affecting his mortgage approval.

Query is how will I know that HP is fully cleared? Do I contact the finance provider?

NOOOOOOOOOOOOOOOOOOO!

At the very least make out the draft to the finance company up to the amount the finance is o/s, and only if certain of finance amount from independent source.

If you pay him the money and he doesn’t pay off the finance you’ll end up having to repay the finance or have the car repo’d.

make out a crossed cheque to the finance provider. That's what I did when I purchased a car second hand with finance outstanding.

Finance provider will not share account details with you, a third party, so you really need to be sure of the amount of finance outstanding.

Cheers,
I spoke with him again today and the proceeds he will get for the car is less the what is owed to the finance provider. He said he will clear the difference.

I assume I should get him to clear the amount over and above the agreed price first, get evidence of this and then pay him the reminder via draft made out to finance provider. Is there anything else I need to get or view etc?

Just a thing to remember, if the finance is not cleared, the finance company are legally entitled to take the car of you. You won't have a leg to stand on even though you bought the car. It is a huge scam in the UK and it is likely that it could occur here too.

On the other hand, if the seller was trying to do this, it is unlikely that he would have mentioned the hire purchase issue in the first place.

Be very careful!!!!!!

why are you even entertaining negotiating with him. You will more than likely get burnt, why would you take that chance. There are tens of thousands second hand cars on the market. Move on to another seller.

Walk away.

He can get a short term loan unrelated to the car, clear the finance then buy other than that walk away.

Don't listen to any sob stories,

Car was idea and the money was good. Lost out anyway, another guy had first refusal.