Want to purchase car but it is subject to a financial agreement

[wheeler]

I have done a check on a used car that I wish to buy privately and discovered that it is subject to a financial agreement.

I have sold a car myself that was subject to a financial agreement but the money I got for the sale paid off the loan. And I'm sure this is common enough.

How can I ensure that the seller pays the loan as part of the deal?

 

[stefg]

I think this is common enough. I have often heard of people getting bank drafts made out to the financial institution towards the loan when paying for a car.

Talk to the seller, see if they are happy to accept this and then you or they can contact the financial institution to find out how to address the bank draft so they can put it towards the loan.

You just need to make sure that the sale completely covers the loan.

Hope this helps.

 

[Sloppy]

Simply meet the seller at the financial institutions office. You pay the inst. and pay the seller the difference, or if they are in neg equity, make sure they pay the difference to the inst, and get something in writing from the inst to say they have no interest in it.

 

[redchariot]

Be very very careful; if the seller does not bother to pay off the loan, the bank is legally entitled to take the car off you.