Hi,
We have looked at a van that we are very interested in. The owner has been upfront and said that it has outstanding finance with black horse that he will clear once we have paid. Any suggestions or would you steer clear?
Thanks
you could always offer to make a payment to the finance company to clear the finance and pay the remaining balance to the seller, if he doesn't want to do that I wouldn't go through with the sale
------------- -x- Diane -x-
May 13 - Cala Gogo, St Cyprien (didn't go, hubby too ill to travel)
May 14 Ranc Davaine
August 14 Les Sablons
August 13 - Camping Playa Brava, Pals
Thanks GT60. Was a little bit dubious but was thinking that if I did a CRIS I could buy on the understanding we paid the loan off with that portion of the money. Or we take on the debt and pay the balance.
you won't be paying their loan off you'll be paying them for the van but ensuring that the finance is paid off so that the finance company can't come back and say they still own it
------------- -x- Diane -x-
May 13 - Cala Gogo, St Cyprien (didn't go, hubby too ill to travel)
May 14 Ranc Davaine
August 14 Les Sablons
August 13 - Camping Playa Brava, Pals
I know what you mean about not having to pay someone else's loan but many a time that is what we do when we buy without realising. What do sellers do with the money they get? They could pay off a bank loan with it. It only matters in this kind of case when the van is subject to HP.
Both seller and buyer should have a meeting with the local Black Horse agency office that the seller has been dealing with and explain just what they want to do. The completion of the sale of the van then takes place at the Black Horse offices with the buyer paying off the loan (and any charges e.g early settlement costs) and the balance to the seller. Black Horse may want a Bank Draft to cover the debt.
How the Agency deals with the legal transfer can be in one of two ways. On settlement of the debt they may transfer the van to the seller. At the same time the seller sells the van to you. In the alternative, Black horse may keep ownership when you pay off the HP and then they sell to you. It is important to understand just what the legal transfer is so that you can deal with CRiS. You ask the Agency to provide you with an undertaking to cancel all or any registrations of the HP agreement e.g HPI within fourteen days of the payments and to provide you with evidence of that cancellation.. You get Black Horse or the seller to complete their part of the CVR6, you complete your part and then send both parts CRiS
Remember that Black Horse (if it is the actual owner when you buy) will not be giving you any warranties for the van. It is up to you to find out whether the van is of satisfactory quality etc. Make your own checks before you complete the deal.
Phil
------------- If you're not on a fell your wasting your feet and for 2014 it's.......Feb Castleton Mar North Yors Moors; Apr Sutton on Sea; May Thirsk; Jun Clapham/Riverside (Lakes); July Wharfedale; August Crakehall; Sept Knaresborough; Oct Wirral Park/Clitheroe
Quote: Originally posted by Davebelcanto on 24/9/2011
As far as I have always been aware it is illegal to sale anything that has outstanding finance on it.
Don't buy it as it is the property of the finance company until the loan is paid off.
Dav
last time I dealt with HP it wasn't illegal to sell as long as you let the finance company know you were wanting to sell. So as long as seller is letting them know I can't see there being a problem. It's the ones who don't as has been shown in another thread titled CRIS
------------- -x- Diane -x-
May 13 - Cala Gogo, St Cyprien (didn't go, hubby too ill to travel)
May 14 Ranc Davaine
August 14 Les Sablons
August 13 - Camping Playa Brava, Pals
Sounds as though it will be an early settlement of HP and for which there can be charges. Those charges are the responsibility of the seller so they just get added on to what you pay Black Horse to clear the HP and the seller gets less of the balance. Just remember that you have agreed a price with the seller so that is all you pay. Part to Black Horse and part to the seller.
Just ask Black Horse what the total sum is that they require to clear the HP and release the CRiS and cancel registration of the HP. They will tell you their process and you just follow that.
When I said "You ask the Agency to provide you with an undertaking to cancel all or any registrations of the HP " I should have said that you must get that undertaking in writing. Something along the lines of
"In consideration of you today settling the outstanding Finance on Bailey caravan CRiS registraion number ......................I hereby undertake to cancel all or any registrations of the HP agreement dated the .................... made between Black Horse Limited and [Seller name and address] within fourteen days of todays date and to provide you with a copy of evidence of such cancellation within seven days of our receipt of such evidence.
signed
Manager - address
Dated this day of 2011
Get it on Black Horse headed paper. I would check at HPI that the van only has the one HP agreement!!!!
Phil
------------- If you're not on a fell your wasting your feet and for 2014 it's.......Feb Castleton Mar North Yors Moors; Apr Sutton on Sea; May Thirsk; Jun Clapham/Riverside (Lakes); July Wharfedale; August Crakehall; Sept Knaresborough; Oct Wirral Park/Clitheroe
Amazing family weekend with old steam engines, classic car displays, market stalls, and full catering and bar. And camping on site - Save £25 by booking in advance.
Topic: Buying a van with outstanding finance
Or we take on the debt and pay the balance. 
