Question 1

How do I approach a private car seller?

Accepted Answer

When approaching a private car seller, follow these tips for a smooth and successful interaction:

Be polite and respectful: Initiate contact with a friendly tone and express your interest in the vehicle. Give them time to respond before chasing them, they may not reply straight away.

Ask questions: Ask the seller plenty of questions about the car's condition, service history, and any relevant details to make sure it suits your needs.

Arrange a viewing: Schedule a time to inspect the vehicle in person, preferably during daylight hours and in a safe location.

Bring a friend: Consider bringing along a trusted friend, family member or professional mechanic for support and a second opinion during the viewing.

Negotiate respectfully: Negotiate the price diplomatically, considering the market value and the condition of the car.

Confirm details: Double-check all documentation and details before finalising the sale to avoid any misunderstandings.

By following these steps and maintaining open communication, you can approach a private car seller with confidence and professionalism.

Question 2

Who is the registered keeper of a car on finance?

Accepted Answer

The registered keeper of a car on finance is typically the individual or entity listed on the V5C (logbook) as the legal owner of the vehicle. In the case of a financed car, the registered keeper may be the borrower or the finance company, depending on the terms of the finance agreement. However, it's important to know the difference between ownership and possession, as the registered keeper may not always be the legal owner of the vehicle.

Question 3

Can you sell a car without a V5C Iogbook?

Accepted Answer

While it's possible to sell a car without a V5C (logbook), it's highly discouraged and may complicate the sale process. The V5C serves as proof of ownership and contains essential information about the vehicle, including its registered keeper and vehicle history.

Selling a car without a V5C may raise suspicions and deter potential buyers. If the V5C is lost or unavailable, apply for a replacement from the DVLA before selling the vehicle to ensure a smooth transaction.

Question 4

How to buy a car in the UK from a private seller

Accepted Answer

To buy a car in the UK from a private seller, follow these steps:

Research: Determine the make, model, and price range of the car you're interested in, and find a seller you are happy with.

Inspection: Arrange to view the vehicle in person and conduct a thorough inspection. If you’re new to car buying, it helps to have a mechanic with you or somebody who is knowledgeable about cars.

Negotiation: Negotiate the price with the seller based on the vehicle's condition and market value.

Documentation: Ensure all necessary paperwork is included and accurate. This includes the V5C (logbook), service history, and MOT certificate.

Payment: Agree on a secure payment method and complete the transaction, making sure you get a receipt as proof of purchase.

Transfer ownership: Complete the V5C transfer process to update the vehicle's registered keeper details with the DVLA.

Question 5

Can I reject a used car on finance?

Accepted Answer

Yes, you can reject a used car purchased on finance under certain circumstances. The Consumer Rights Act 2015 provides protection for consumers who buy goods, including vehicles, that are not as described, of satisfactory quality, or fit for purpose.

For example, if the car develops significant faults that were not disclosed by the seller at the time of sale, you may have grounds to reject it and seek a refund or replacement. However, it's important to act quickly if this happens, and you must also make sure you stick to the terms outlined in your finance agreement.

Question 6

What is the safest way to pay for a car from a private seller?

Accepted Answer

The safest way to pay for a car from a private seller is through a secure method that provides documentation of the purchase and some level of buyer protection. Consider using a bank transfer or cashier's check (also known as a banker’s draft), both of which offer traceability and can serve as proof of payment. Avoid paying with cash, as it lacks a paper trail and leaves room for disputes. Additionally, make sure you arrange to meet the seller in a safe, public location to complete the transaction.

Question 7

Can I gift a car on finance?

Accepted Answer

Yes, gifting a car on finance is possible, but it requires careful consideration and communication with the lender.

While transferring ownership of the vehicle to another person as a gift is allowed,, the finance agreement remains tied to the vehicle until the loan is fully repaid. It's essential to notify the lender of the ownership transfer and ensure the new owner understands their responsibilities regarding the outstanding finance.

Question 8

Can you finance a plate from the DVLA?

Accepted Answer

Yes, the DVLA (Driver and Vehicle Licensing Agency) offers options to finance personalised registration plates through their online platform. This allows you to spread the cost of purchasing a personalised plate over time through regular instalment payments.

Question 9

Can you finance a private registration plate?

Accepted Answer

Yes, you can finance a private registration plate. Some lenders offer specialised loans or financing options specifically for buying personalised registration plates. However, the availability of such financing may vary depending on the lender and your credit score.

Question 10

What happens if I sell a car with outstanding finance?

Accepted Answer

Selling a car with outstanding finance requires transparency and cooperation with the lender. When you find a buyer, you must settle the outstanding finance using the money you make from the sale. Failure to do this could result in legal consequences, as the finance company holds a vested interest in the vehicle until the loan is fully repaid.

Question 11

Can you privately sell a car on finance?

Accepted Answer

Yes, you can sell a car privately even if it's still under finance. However, there are some crucial steps to consider. Firstly, you must inform the lender about your intention to sell the vehicle, and you’ll need to get a settlement figure from them (this is the amount left to pay on the loan).

When you sell the car, the money you make should be used to settle the remaining finance balance first, and then you can keep whatever is left over.

Question 12

How is buying privately different from buying from a dealership?

Accepted Answer

When you buy from a dealership, you often have access to a wide range of financing options offered by the dealership itself or partnering financial institutions. Additionally, dealerships may provide warranties and guarantees, along with facilitating paperwork and registration processes.

On the other hand, purchasing privately involves negotiating directly with a seller who might be selling their own car from home. This potentially offers more flexibility in price and terms, but may lack the same level of convenience and buyer protection that you get with a professional dealership.

Question 13

What is private car finance?

Accepted Answer

Private car finance refers to loans specifically designed for buying vehicles from private sellers rather than through dealerships. They usually offer competitive interest rates and flexible terms to accommodate your needs, and are often called Hire Purchase (HP) finance agreements.

HP finance is similar to a personal loan because it involves borrowing the total amount you need, and then making regular monthly repayments to the finance provider. However, unlike a personal loan, the money you borrow with private car finance is secured against the vehicle you are buying, so you don’t actually own the car until the finance is paid off in full.

Question 14

Can I get car finance on a private sale?

Accepted Answer

Yes, it is possible to get car finance for a private sale car. Many financial institutions and online lenders offer private car finance options tailored to people buying vehicles from private sellers. These loans typically work similarly to traditional auto loans, providing funds to purchase the vehicle with repayment terms structured over a set period.

You can also get a personal loan to cover the cost of the car, which some lenders can organise for you, or you can arrange to do this yourself by getting a personal loan from your bank.

Question 15

Does CarFinance247 offer car finance for private sales?

Accepted Answer

Unfortunately we no longer offer private car finance here at CarFinance247. However, if you decide to buy your next car from a dealership we can absolutely help you get finance on a HP (Hire Purchase) or PCP (Personal Contract Purchase) agreement. Buying from a dealership and getting a finance deal through a reputable lender offers you a higher level of protection, such as warranties on the car and more payment security for your finances, so this is something we would recommend considering.

If you do choose to buy your car privately, however, this guide should provide you with everything you need to know to help you get car finance for a private sale.

Question 16

Can I use finance to buy a car privately?

Accepted Answer

Absolutely. Financing a car privately involves obtaining a loan from a lender to cover the purchase price of the vehicle. This loan can be used to buy a car listed by a private seller, allowing you to spread the cost over time through manageable monthly payments.