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If I am buying a used car from a private seller and there is finance owing, what should I do to achieve a sale?

Surely the seller needs the funds from the sale to clear the outstanding debt.

Nicholas

From the "Ask Jack" archives - 10 February 2010

One of the risks you have is trusting the seller to settle any outstanding debt on the vehicle with the money you hand over in good faith.

Some buyers will talk to the finance company concerned and arrange to settle the debt themselves and then pay the seller the balance between the selling price and what was owing.

While it may not be common, there are sellers who use the money gained from the sale for other purposes or simply vanish and leave the new owner with the hassle of dealing with the finance company.

It doesn't pay to assume too much when buying a car privately.