how to buy a car privately with outstanding finance

If a private seller still owes money, you’re not just buying a car—you’re auditioning to inherit their debt, so start with a PPSR check on the VIN to confirm any encumbrance. Ask the seller for a current payout letter from their finance company showing account details, the exact settlement amount, and the valid-until date. Pay the lender directly (bank transfer or in-branch) and only give the seller any leftover balance—no “I’ll fix it later” fairy tales. Get written confirmation the loan is cleared and a release of the security interest, then verify the PPSR shows no encumbrance before you drive off. Put it in writing: a bill of sale noting VIN, price, odometer, IDs, and “subject to finance being cleared,” plus receipts for every dollar. If the seller won’t allow a direct payout or can’t produce a current letter, walk away—repossession drama belongs on TV, not your driveway. You’ll find plenty of sellers on Tradingpost who are happy to do the payout dance properly.