HI folks, Need some advice please, I am interested in a zx10r, I have spoke to the chap who seems honest enough. The bike is in his name and the log book is at the address where i would pick the bike up, He has told me it still has £3000 outstanding and has only not settled up already because he is waiting for a definate sale and the bike is 0% finance. A quick google search suggests that he lets me settle the finance with a cheque at the finance company direct with the buyer present and pay him the remainder in cash. Does thie sound like good practice? Really dont want to get spanked
Bike on finance? help
Posts 16 | Views 762
may get complicated.
If I was you, pay him whatever price you agree on for the bike, the finance is in his name, not the bike.. let him sort that out.
I wouldn't get involved in someone else's finance agreements mate no way... pay him what bike worth.. up to him to clear his debts I think.
Sorrry to differ but as far as i know the bike belongs to the finance untill the last payment is clear
If for wotever reason the guy stops payin or dosn't clear any outstanding balance they will come n take the bike. Granted that if you have sold said item then they'll have a hard job
But if the new buyer decides the bikes not for him and he trys to sell anybody private/trade could do an hpi on it and this will thell them possibly that there is outstanding finance
Tricky one i know but it could leed to a whole lotta greif
Unless he clears the finance **First** You then do a Data check ie HPI to make sure the bike is clear before parting with your hard earned money.
way too negative chaps
it is common practise and any finance company should be more than happy to aid a sale if they know the settlement payment is going to be paid. They are the ones who own the bike not the rider. Things start to go wrong when the person selling the bike is given the amount needed to settle.
Well said scorps
If you are really interested, the best route is for you to clear the outstanding debt with the finance company and then hand the balance direct to the owner.
This way, the finance is guaranteed to be cleared, (seller can not stop your cheque etc).
I'm not 100% but I'm sure there are complications on legal ownership during the admin process once you pay the finance company - some ask for the seller to gain permission to sell before you can do anythign IIRC.
A little bit of hassle but whatever you do, do not give the full amount to the seller if there is any doubt about outstanding finance.
Id be weery mate
you need to prove that ya'v got it payed off.
Pay the £3 and do that text check, Ive used it and its quite good. Lets you know everything about the bikes past and owed finance.
If it were me, Id steer clear of it.
Or, go to the finance company with him and with the log book, get it on paper before you do the swap.
If he does you, you loose ya cash and ya bike
me thinks you should phone finance company tell them you want to buy the bike and how much is owed on it they may not tell you though due to data protection and there may be a penalty to pay for paying early but the finance company will own the bike untill its paid in full so be carefull if he says he will pay finance off with your money dont believe him if he dont pay you loose bike hope this helps
Too many things to go wrong .Walk away and look for another would be my advice . If he`s keen to sell he`ll find a way .
Having spent 9yrs in the motor trade i think i am able to comment on this.
The bike is on 0% finance, There is no fee's with a 0% deal . The finance company have been paid by the garage or manufacturer ( there profit ) when the bike was bought, All they want now it the final balance . The bike is the finance company's until the balance is paid. The owner is not aloud to sell it until he owns it/ has paid for it. It will state that on his finance docs. Don't buy it until it is paid for ...... This is an easy warning . You will lose if you play this game.
If he is serious about it then offer him a deposit and you can pay him after the finance is settled.
He might be gen and all ligit BUT if it goes wrong and he ain't gen he won't lose out YOU will.
Hope you understand all of above
plenty more fish/bikes in the sea... at least then you can sleep at night knowing there is no come back." />
UP-date, spoke to the bloke tonight and he says he has sorted the debt with lloyds, the HPI should be clear tomorrow t time as they know he is selling the bike. Could it go through on the hpi that quick? heard it takes about 2 week?
I too have a 0% finance agreement with K-care (financed by Lloyds Black horse) and you can pay it off early, and actually get a rebate,rather than a penalty.But the borrower must contact them in writing about his/her intention to do so.If the seller does this,you would need to get a copy of this letter to cover yourself. If he really wants to sell he should be willing to wait while all this is sorted.You could always turn it round, offer to pay him £3,000 .00 deposit and you take the bike and give him the balance when he shows you the clear HPI.
Kindle not a fire that you cannot extinguish.
If he has finance on the bike, then the company own the bike until it is cleared.
If it is a personal loan (eg through his bank, for any purchase) then he can sell it, but he will owe his bank.
He needs to ask the finance company for a letter of the outstanding amount. He will get this really quick, and it will say what is left to clear. (+/- any interest). You could then clear this with the company, and pay him the balance.
Best solution - he gets a personal loan, clears the bike finance, gets a letter from them to confirm it is paid off. (Then it's up to him to pay his bank ~ or not)
If it ain't fun, don't do it
DON'T DO IT
Absolutely DO NOT TOUCH IT if it has finance outstanding.
As others have said, the bike isn't his to sell until the finance is paid, it belongs to the finance company.
If you buy it, and the "seller" fails to pay up the remaining balance, the finance company CAN re-possess it from YOU.
Walk away from it, there's plenty more for sale with less risk. Thats what I would do.
No need to walk away...
I don't really see the need to panic and run a mile from this seller just yet.
You said he's told you he's cleared the finance. That's ok but NEVER take his word for it. Ask for a copy of the settlement letter showing the figure he has/had to pay to clear the finance and ALSO a copy of the acknowledgement letter from the finance company to show the finance is 100% clear (this could take a week or two) - then ask him to call them while you're with him and give permission for them to talk to you to confirm the balance is clear.
Only then can you be sure that the finance is dealt with and the bike will be yours.
If you get any if's, and's or but's from the seller - then walk away. Don't be afraid to ask someone for proof of anything they say, it's your money and new bike that's at risk, not theirs.