Best way to do this????

[wasnotwas]

When buying a boat which has exsiting finance are you better taking on this finance or would the current owner need to clear this finance first before purchase of boat i was hoping i could take on exsiting finance as it was on a good rate of interest etc...

 

[JKay]

current owner needs to clear his finance on the boat first before he can legally sell it
before you purchase the boat make sure in writing that said finance house have no further interest in the boat only then would I pass any monies to the broker unless a small deposit subject to you getting the new finance

 

[enterprise]

I would think it's possible but only with the full knowledge of the lenders, they would be keen to make sure your credit rating is upto it etc.
A big Plus for them is they gain a new customer albeit at a lower rate, against moving your buisness to a competitor.
They may however require you to pay a deposit and reduce the loan but retain the same monthly payments.
No harm in asking is there!

 

[wasnotwas]

what if he is waiting on my money to clear finance its a private seller

 

[enterprise]

I was thinking that you were trying to take on the existing finance (without increasing the loan) for the remaining term with the same company, in which case his finance would be cleared for him when you take it on, he would never see the money, only money that changes hands would be the difference between how much he owes in finnance and the current value of the boat.

Make sure he doesnt owe more than the boat is worth however and hasnt borrowed money from other lenders and used the boat as security.

This is where a broker earns his money, proper contracts and bills of sale etc.

 

[JKay]

does he need your money to clear the finance?
are you dealing with the same finance company for your finance?

 

[wasnotwas]

Yes i think he needs my money to clear finance

 

[scej]

If there is finance with a private sale then it is best if you settle this direct with finance company and get them to confirm that the finance has been cleared. If you are unsure it may be worth contacting an independant broker or a solicitor and ask them to handle the paperwork for you, there would be some cost tho but at least the paperwork would be done properly. as previously said this is where brokers 'earn' their money making sure the paperwork is in order.

 

[enterprise]

'You' would need to clear his finance and only pay the remaining balance to the vendor, if you dont he could simply walk away and leave you with a boat that is still owned by the finance company.
Deal with the finance company regarding the outstanding debt, they are the owner, not the vendor.

I have assumed the finance you refer to is secured to the boat, if the finance is a personal loan from the bank etc the debt will remain with the vendor, is he with a recognised major marine lender?