Phoned up about a Ducati for sale to day - looks good but buyer informs me he owes 80% of it's value to a financing company. "No problem" says he "You pay me and I settle with the finance co!" Since I live way down south and he lives in Invercockaleekie I was expecting to take a van up there, inspect bike, pay for bike and load it onto the van and head South. Don't like paying a fair wad to someone who doesn't own the bike outright my deal should be with the Fin CO. if with anyone - and I can hardly hang around in Scotchland whilst he settles (with my money) with the Fin co. What the hell sort of invoice/ security could he give me for the money I give him? Giving me the bike is no good as it's not his and what if he spends the whole lot on gambling and drugs instead??? Never been in this situation before and obviously I want the Ducati - anyone know how I can deal with this situation ( apart from walk away).:biggrin: Thanks in advance for any advice
There must be a way as bike dealers will take finance bikes in and settle it but considering there isn't really a shortage of bikes about I would find one that is less hassle myself.
Had a similar situation, but my friends are dealers, I'd say if its all genuine, he gives you the details of the finance company, would show up on hpi check I beleive anyway. He then gets the 20 percent or balance. And you settle the finance. But it is a little complicated on a private sale.
Under no circumstances give the seller the full amount. You need to liaise with the finance company to establish if the seller can in fact sell the bike. The seller needs to get a final settlement figure from the finance company. You then need to arrange with the finance company to pay the settlement amount direct to them, not the seller. The logistics of this payment are the problem as you really need to do it and then take immediate possession of the bike and give the seller his cut of the deal.
If the bike is on HP then he doesn't actually own the bike and can't sell it privately without prior permission from the finance company. If he does he's committing a criminal offence. When you deal with a retailer they act as the broker with the finance company and accept the debt liability. Walk away.
Just walk away. There's another bike closer, cheaper, better, and safer. You just ain't found it yet.
I bought a bike in the same situation a few years ago. In some ways it's a safer knowing about the outstanding finance and settling it yourself rather than being stung later on. We all do HPI's on bikes which show up outstanding finance but these days there are more and more cases of 'log book loans' and other professional loan sharks whom lend money with the bike as security and they don't show up on HPI reports. Firstly and most importantly don't trust the seller to settle the loan and never hand over the full amount. The outstanding amount stays with the bike not the seller, so if he doesn't settle up the finance company will come and take the bike off you regardless of whether you paid in full and in good faith. Here's what I did: 1. Get the seller to contact the finance company and ask for a settlement fee to be sent in writing. Also you need to get the seller to give permission for the finance company to confirm and discuss the outstanding amount with you (they won't do otherwise because of the Data Protection Act). Then you need to ring them, check using the internet that the company and it's phone number are legit (not his mate) and confirm the details and how you can make payment ie. bank/credit card etc. 2.Inspect the bike and if it's OK come to a deal. 3.Ring the finance company from the sellers/bikes address and pay the outstanding finance, preferably using a credit card as you will be covered by the cards protection if anything does go wrong, but depending on the outstanding amount and your credit limit this may not be possible, so a bank card may be the only option. 4.Pay the remaining amount to the seller. 5.Ride off into the sunset wearing a big cheesy grin. Hope this helps. Goodluck!
Go inspect the bike. Pay the finance company by debit card on the phone , and give the seller the remaining 20%. He knows it's settled, you have the bike and everyone happy.
What the seller is planning to do is sell his bike, buy another, and not bother telling the finance company. Just saying.
^This. I just bought another bike privately from a seller who had outstanding finance in this way. Get a settlement letter from the finance company first and speak to them in your own time to confirm their process ahead of time.
Wow - tons of thanks all - you've really explained my position... On balance it seems walk away is the wisest option - the bike is good but the seller is 380 miles away and the logistics make my head spin - plus the bike is going for roughly market value so it's not even a bargain ( I suppose this could be a bargaining tool and I could offer to pay him 15% less to compensate for the hassel). I might have considered this if he was fairly local - but I would be a long way from home so I'm walking...
It's an 848 - I don't want to identify it too much since the seller may well be reading this! :biggrin: Having said all this I don't *think* the buyer has any criminal intent here - just being a bit naive and sounds like he is strapped for cash and just wants to get out of coughing up the payments. Years ago I was offered a cat d Triumph Daytona - original owner had bought done a log book loan on it ... then he thought it was a good idea to auction it off and keep the money....auction house did a standard check (surprise ) and impounded the bike on behalf of the log book loan co. The bike was damaged to cat d standard when the log book loan's driver who came to pick it up dropped it off the recovery van! Now that guy ( who must have been a right pratt ) WAS a criminal ... thank goodness for HPI checks!
Plenty of nice 848's on Biketrader website including a nice Evo model for nice money. DUCATI 848 848 cc EVO
Beach Pine Close sounds like a nice place, might come round with my van, I believe a nice Ducati lives there. Only joking but watch out you don't leave your postcode on links
I kindly disagree with most of the posters above. Many bikes are purchased through HP, 0% finance or whatever. Infact, i sold a bike like that. Told the buyer, he came over with 100% cash. I called up the finance company, had it on speaker, I paid it all and he gave me the cash. I wasn't trying to trick or try anything on. There was no point me paying off 0% finance if i didn't end up selling the bike.
Wait a bit. Its still on Feb and when more summer riders come out, the chances of more 848 being traded in for the 899 for example will rise. There certainly wont be any shortage, plus that a round trip of over 700miles. In my car that's nearly £150 in fuel. F-that! :tongue:
I wouldn't worry too much about finding a nice 848 as I'm sure there is loads about come spring. I was looking to sell mine to swap to a panigale but after looking what they are worth I think I might hold onto it and save for a 899 aswell.
You would be a bit unlucky though since i have not lived there for over 8 years. Even i am not that stupid.
