buying a car that has finance on it
Hey all,
Just about to purchase a VY commodore, called up VICroads to check to make sure car wasnt stole etc.. however it came up that there was interest/finance against the car. Now i know most people cant just go out and buy a car with cash so its not too much of a shock that it was brougth on finance. Just wanting to know what i could do to cover myself so the car doesnt get repossesed of me if he happens to not pay off the loan with the money I give him
Thanks!
Take it out/Take it Back
I was in the same situation when i bought my SS. It comes down to trust aswell, the guy wanted to sell, i wanted to buy, we chatted, and came to an arrangement which worked for both of us
The guy still had 9 grand oweing to GE (worst lot ever)
What you need to do, is get the seller to get in contact with their finance company and request a payout figure. This will be valid for about 3 days, with this figure, you can then supply him with the money to pay the loan off. If you distrust him, you can request to maybe go to a branch of the institution and hand over the payment together, but this way, you've covered the finance, and your ass.
Hope it helps.
Originally Posted by ari666
Mate dont do it!!!!
My old man did exact same thing..
First of all its illegal to sell a car that still has finance owing on it ect
But heres a story that happened to my dad!
This guy up north made an arrangement with my dad so that my dad took possesion of his car (a vs 5ltr stato) and my dad made the repayments on the finance and once the car was payed off the car would then be my dads! Well my dad put the money into this blokes bank account and was trusting the bloke to pay it off (the guy was supposed to be a mate) but the bloke spent the money with his girlfriend car was reppoed and my dad lost about 15K out of it with no car!!
To cut a long story short its just not worth the risk!,So for future reference whether going through a yard or private get a revs done and you will be right!, in this day and age mate its just not worth it!
DW I'm a Spray Painter!
Total bullshat....
Get him to sign a writern agreement stating that he will settle the finance owning with the money, that WILL hold up in court.
What DARKVL said is true aswell. It comes down to trust. If you dont trust the person, you dont hand over a large amount of money simple.
Just talk to the guy heaps and get to know him. He came over to my house, i helped him with everything to do with the car, he even drove me back home when I sold it!
Ill try and dig up my agreement to give you a guide.
Last edited by BANKS; 11-07-2008 at 10:58 PM.
VZ SSZ- LS1
Make the stupid stop!
Not always - depends on the type of finance. A personal loan for instance may hold no encumbrance over the vehicle. If you talk to your finance company if there is an encumbrance and inform them you wish to sell the vehicle, they will discuss the correct methods to do so.
Wow, no offense but your dad is very gullible.
Why cant you get him to get you a final payout figure then sign the rego papers and take the car and give him the cheque in the name Finance Company and any outstanding balance if any in his/her name.
Im sure this is what i did but that was a while ago and in NSW
Stupid questions are better than stupid mistakes
I was delighted to be able to answer promptly. "I don't know", I said.
OMR346
bank cheque is actually 2 words
Who wants chowder?
It is not illegal, as said you just need to make sure the guy you're buying it off pays out his finance.
From memory my brother did this when he purchased a car, one bank cheque to the place he owed money to pay out the loan, the rest in cash after he received paperwork stating the loan was payed, pretty easy really.
Who wants chowder?
Bah, beat me to it, should've read more
It's not illegal to sell a car that's still under finance, but the seller MUST pay out the finance owing.
I would make a cheque out to the finance company for the amount outstanding, and a second cheque to the seller for any balance.
DW I'm a Spray Painter!
Are you paying with finance? when i bought my VY it was $18,000
He owed $11,000
I paid $1800 deposit.
Esanda (my finance company) Placed $11,000 directly into HIS finance to pay the car off, bacause thats the agreement we came up with. Which saves alot of worries from both parties.
Then placed $5200 into his personal account along with my $1800 deposit.
VZ SSZ- LS1
thank you heaps for the help guys.. it does seem like a pretty big risk, so i might just wait for another deal to pop up because im sure there is more more then one Vy commodore out there lol....When I look at the car tomorrow ill ask him if its on finance see what he says;
LS-EXUAL
I'd find out how much is owing, go to the seller, tell them you will pay out what they owe and for the actual car, you will pay the balance.
EG: The car is worth $15,000, the seller owes $9000 to finance, you pay out his or her $9000 left owing, and give him or her $6000 for the car. Unless of course you talk the price down etc, then adjust the figures accordingly.
I spoke with my bank as I was thinking about selling my car. I have a car loan with this bank. They told me for me to sell my car with money still owing on it, is for me to write a letter to the bank manager letting them know I have put the car up for sale, how much approx I will be selling it for. Then when I sell the car I can then pay the loan out.
Yes so it is a trust on the seller. No it's not illegal. By the way I am not selling my car now, I keep looking at it and keep loving it for some reason.
Yours Kindly,
Jim
Moderator Puppeh
thread cleaned.. keep it on topic this time
WTF?!?!
I recommend you stay away from the cars that owes finances if you do not feel you trust the owner...
But if the car you really want then thread carefully and make sure that the owner pays it off.
And being it a commodore I'm sure there are other plenty good examples you could find apart from this one..
Just going by what ive been told from various places!
Fair enough if its true but i wouldnt be buying a car that still has finance on it except if i dealt directly with the finance broker and had all the details of the loan transfered into my name ect, but meh thats me lol!
HAHA no offence taken i totaly agree with you!
I Jizzed in my pants
From memory, its been awhile since i've sold a car with finance owing, you have to get permission from the credit provider to sell the car?
If you do decide to go down that route, make sure you get the owing balance on the day you repay the debt, or you agree to put extra on the loan, which the guy you're buying off will get back once the loan is finalised.
Signage, Splash Backs and Display Systems
"No, I'm not a pessimist. At some point the world shits on everybody. Pretending it ain't shit makes you an idiot, not an optimist."
I agree with Juzo. It's not illegal when it process in legal.
Donati..Whoa Green
Epic thread dig mate.
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Mucca Mad Boys
Been happening a lot of late
I sold my last car which was under finance. When the buyer paid the deposit I asked him for 2 days. Went cash in hand to the bank and settled up. I would never buy a car under finance personally; I'd pay a deposit and wait for the all clear from the seller.
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