Buying a friends car HPI issues???

[mchgh9]

My friend is emigrating and selling off all of his assets. His car is still under finance but the finance is on a loan for car and not actually on a personal contract with the car company. He was willingly explained this to me and has offered it at a cheaper price because of this issue with the finance company. He has wrote to the company offering to pay them in installments but has recieved no reply. If he signs the car over to me and i pay him accordlingly is there anyway i could lose out?

[NORMANTHEDOG]

it depends on the sort of loan he took out,to buy the car.ask him to see the loan papers and see what the small print on the agreement says.

[almcd007]

Why cant you offer to settle the finance and settle up the difference with him in cash ? You could send a cheque to the finance company or pay it off at the bank - you need a settlement figure you can achieve that by telephone. That way he clears the finance. You buy the car. he leaves with no problems and your safe in the knowledge the finance has been settled and the car's yours !!

[WoWo]

"is there anyway i could lose out?"

The thing with these finance deals is that they are like any other loan, therefore they will have interest to pay on them. I would imagine that the remaining money on the loan will be higher than the value of the vehicle so you need to make sure that you are not paying over the odds for it.

Personally I wouldn't go near any vehicle with HPI still outstanding.

[lisalashes]

I too wouldnt go near a car which has outstanding finance. And I agree, that if you were take the finance agreement over, which isnt as simple as it sounds, then you will be hit with loads of interest. I would steer clear unless your friend can settle the finance before you consider buying it. If your friend is desperate to get rid of his car and the financial commitment, he may be able to simply give the finance company the car back, depending on how much of the balace he has paid.