Buying a used Bike already on Finance

[markbmw]

I have been offered privately an almost new GS1200. Am interested in purchasing as a cash purchaser. The issue is that my credit check shows there is 7000 pounds of finance owed on it by the current owner.
What is the procedure for paying this off? And does any liability accrue onto me if the seller does not settle the finance company immediately ( or worst still at all). As the bike is rather a lot of money,it is a concern, but surely there must be a procedure for doing this.
Your thoughts Guys and thanks as always

 

[wessie]

Get the seller to ask for a written settlement figure. This will come with a paying in slip. Check the details match your HPI check and the expiry date of the settlement offer, as they usually expire after the next payment is due. Agree the price with the seller. Agree to meet the seller at the bank listed on the paying in slip, or a branch of your own bank. Complete all the necessary final arrangements, including a bill of sale, the V5C completion and have the keys in your hand. Then hand the settlement cash and paying in slip to a bank teller. Keep the receipt. Give the seller a photocopy. Hand the cash balance to the seller. Ride away on your new bike.

 

[Diamaduk]

If you buy the bike knowing there to be outstanding finance and the seller fails to clear the debt, the finance company will try to re-possess the bike from you especially if the seller is previously known to you or related to you.
There is also a factor of what percentage of the debt he has already paid.

In effect do not buy this bike until you are 100% sure there is no outstanding finance, it will bite you if you do

 

[gwigglesworth]

Yes if it is not paid of they reposses and you lose the bike.

Why not offer to the seller to write 2 cheques, one to the finance company and even post it yourself to them?

 

[Davy F]

I went over to Scotland with a friends father to bring home a Versys last June. There was outstanding finance on the machine (tho' alot less than £7k) and the father phoned the finance company once we got to the sellers home. He then paid off the full amount using his debit card. The seller then phoned the company back to verify that the transaction had been successfully carried out (because it was as much of a concern to him that we weren't scamming his bike off him). The balance in cash was then handed over and I rode away on a cracker of a wee bike. Quite simple really tho' others mightn't be as happy to do it this way, but it worked out fine.

 

[Tonibe63]

Your HPI check should have details of who the Finance Company are and the loan agreement number. Give them a ring and find out if a settlement letter has been sent and how they wish it to be settled-they will not tell you who's name the loan is in and how much is outstanding.

 

[JohnnyBoxer]

Get the seller to ask for a written settlement figure. This will come with a paying in slip. Check the details match your HPI check and the expiry date of the settlement offer, as they usually expire after the next payment is due. Agree the price with the seller. Agree to meet the seller at the bank listed on the paying in slip, or a branch of your own bank. Complete all the necessary final arrangements, including a bill of sale, the V5C completion and have the keys in your hand. Then hand the settlement cash and paying in slip to a bank teller. Keep the receipt. Give the seller a photocopy. Hand the cash balance to the seller. Ride away on your new bike.

As always, Wessie is spot on..........................do this

 

[Bahnstormer]

Keeper is not the Owner

Don't overlook the fact that the keeper of the bike and therefore the finance agreement does not have "title" to the bike until the agreement is settled as such can not sell the bike until their agreement is cleared!

Any uncleared finance debt travels with the bike, any new keeper could have the bike snatched back if the agreement holder defaults.

 

[markbmw]

Thanks Guys.
Am taking Wessies advice. Will do the deal in the bank on Wednesday. Looking forward to a ride out sometime.
Thanks all for the advice
M