Buying a secondhand item - originally purchased on credit

[Tulipone]

Hi - I have been offered an Apple HomePod by a colleague who purchased it on credit a month ago and didn’t get on with it. He has 11 months to go paying for it - how would I stand if he didn’t finish the credit agreement? Any thoughts gratefully welcomed. Would I be legally responsible for the credit agreement?

 

[Box Brownie]

None too sure..............................talk to CAB perhaps?

Having said that, I surmise the agreement he has would have an early repayment figure (with penalty charge?). So equally surmise you would be paying him cash = him paying off the loan. Therefore, maybe offer to buy it if/once he clears the credit agreement first with him being able to show that he then owns it outright and can then sell it ( do such agreements have clauses about being able to sell an item)???

 

[lindsay]

You'd need to check the credit agreement to see if the loan is secured against the product, but that is not usually the case - these buy now pay later schemes are usually a form of consumer personal loan rather than hire purchase/pcp.

 

[Tulipone]

So I guess the follow up question is - would you go for it or miss? I would probably be told to mind my own business if I asked further questions.

 

[simon ess]

If they won't answer those questions I wouldn't touch it with someone elses bargepole.

 

[Box Brownie]

So I guess the follow up question is - would you go for it or miss? I would probably be told to mind my own business if I asked further questions.

If your reading of him is that he would not take kindly to, what to me are logical, questions.....then ignore it/him. As surely, this is not a matter of trust but if reluctant to answer and/or consider a mutually agreeable way to do the sale.....then why not???

If they won't answer those questions I wouldn't touch it with someone elses bargepole.

 

[drounding]

I wouldn't buy it unless the credit agreement is proven to be cleared at the time of your purchase.

 

[Tulipone]

I think you are all right. A good discount is not worth a problem. Easier not to get involved. Interesting though and I wonder if we all check those secondhand lenses or bodies prior to purchase?

 

[F1.2]

If he has not paid for it in full does he own it ?

 

[ecoleman]

I'd say you are worrying about nothing. I'm sure lots of people sell items that are still under finance at some point or another.
If this was an issue there would be companies charging you via an app to get and HPI check for that iphone you found on eBay.

I doubt very much that any finance for a small electronic device would be secured by the device itself. Even if it was, how would the finance company trace the item to yourself or go about recovering the device?

 

[AndrewFlannigan]

I doubt very much that any finance for a small electronic device would be secured by the device itself. Even if it was, how would the finance company trace the item to yourself or go about recovering the device?

There have been several informative BBC1 programmes on this and similar matters over recent years. They tend to be on during the late mornings.

From examples they've shown, if you know enough to question the deal then you shouldn't go through with it. This could quite possibly be some form of insurance scam and you could find yourself hauled up as an accomplice.Something like a Homepod is easy enough to trace because its identity can be checked when it's connected to the Internet. Several programmes have shown the insurance and credit companies catching people by doing just that with similar products.

If in doubt, leave it out is always the best path to take.

 

[Box Brownie]

Though not related(?) I recall hearing/reading of folk being offered upgrades of their iPhones and keeping the old one in use and selling the new one. With such a practice actually being a breach of contract by the recipient.

 

[Tulipone]

Though not related(?) I recall hearing/reading of folk being offered upgrades of their iPhones and keeping the old one in use and selling the new one. With such a practice actually being a breach of contract by the recipient.

Another interesting thought. I had been thinking about looking for a replacement phone and this hadn’t occurred to me. A bit of a minefield eh?

 

[cosmicma]

as far as i can remember a higher purchase agreement is where you don't own the item until the last payment is paid but a credit agreement on an item is for all intensive purposes a money loan where you owe money the item has been paid for by the loan company

most items today are bought through a credit agreement,, HP is more or less a thing of the past where you would owe money to the actual outlet rather than a credit company

as far as the apple homepod is concerned where he bought it ( apple store / pc world etc ) would more likely tell you what sort of agreement it was purchased with
if it was a credit agreement and he defaulted they would chase the money not the product

 

[the black fox]

The only problem I can foresee is if he fails to pay ,could Apple then block it .. I know they can do that with Amazon echo ?