***Buying a car of somebody that has finance on it still***

[burnoutnut]

Guys i need help again


So i find a car i like YAY got the car details like vin, eng, chassis and gave REVS a call and to my suprise this guy has 2 loans on this car (i was like WTF).So the next morning i cruised down to the bank to ask what the procedure is with the money (borrowing 15 k of the 30k) and getting it to him so i could have my new car .

The ladie at the bank said "we cant give you the money untill he pays his debt off". My bank was saying something about getting a form signed from his bank to say he would be paying the remainder of the loan off then and there when my bank gave his bank the money.

Whats the deal with this? anyone got any advice or should i just walk away from the deal?

[poolkeeper]

Get him to pay the 2 loans, then have 2 written confirmation letters.
Remember where he lives..

Buy car :rofl:

[Brandonsdad]

Sounds like a real piece of work. He was probably hoping that the buyer wouldnt notice the finance still on it.

Keep looking.

[Tyre biter]

The creditor/s have bills of sale on the car - sort of like a mortgage but for other good like cars. Essentially it means the creditor has promacy claim to the car until the loans are paid out.

Ordinarily you can draw a bank cheque made to the account number for the loan/s and by doing so ensure (as best that you can) that your $ goes into the same and clears the bill of sale.

You might even be able to physically attend the creditor/s that hold the bill/s of sale and do this in person. The important thing being that until/unless the bills of sale are cleared, the creditor retains claim to the car.

This being the case, never ever hand your money (cash or personal cheque) to the seller and trust they will make payment to the creditors on your behalf.

Cheers, TB

[goose202]

It's not necessarily any bad intentions on the seller's behalf. Some just assume when they get the cash from the sale of the car they'll pay out the loan and it'll all be fine.

My sister purchased a car privately that was under finance, she just made sure she was there in person when the owner paid out the loan.

But if the bank won't hand over the cash while there's an encumberance on the vehicle, then surely there's only two ways the deal can go ahead - previous owner pays out the loan, or buyer pays in cash?

[QIKMIK]

I have sold a car under finance before and IIRC I got the buyer to pay the balance of the loan directly to the finance company. I think she had the cash though so that doesn't solve the two loans thing. Maybe get him to pay out one and you pay the agreed sale price to the other....something like that.

Mick

[burnoutnut]

I have sold a car under finance before and IIRC I got the buyer to pay the balance of the loan directly to the finance company. I think she had the cash though so that doesn't solve the two loans thing. Maybe get him to pay out one and you pay the agreed sale price to the other....something like that.

Mick

they told me to make sure he pays the loan in full or dont bother buying the car

not worth the risk

[blnls1]

Hi, when i bought my car it had $13,000 finance owing on it. The car was "say" $20,000. I got a bank cheque made out to the seller for $7,000 and I paid the finance company the remaining $13,000 they were owed. so i knew that the finance had been cleared. I then showed the seller the reciept from the finance company showing that the remainder had been paid. But just be carefull that you know were the car and the seller are so that it's all good. And no body does a runner!.

[psykor8]

have sold many cars that ive had loans on, and the buyer gets a bank cheque made out for the amount owing on my loan and pays it to them/bank and i recieve the difference, make sure you write up some sort of doccument / stat dec that they sign so your arse is covered incase they turn out to be dodgy. Hope this helps, if you need more info pm me

[burnoutnut]

the thing is im paying a grand less for the car that what he ows one it

if it was the other way around i wouldnt be bothered

[goose202]

That was the same situation as my sister was in. She went into the bank with the owner, got the bank to confirm to her what the amount owed was, handed over her cheque to the cashier and watched the owner hand over the money for the remaining.

She also got the owner to write out a receipt that was clear that any outstanding finance obligations (despite having just dealt with that) would be dealt with by the owner, for whatever that's actually worth.

The whole extra effort was worth it to my sister because it was the car she wanted at a good price, presumably because many other buyers didn't want to go through this effort and take the risk.

[burnoutnut]

That was the same situation as my sister was in. She went into the bank with the owner, got the bank to confirm to her what the amount owed was, handed over her cheque to the cashier and watched the owner hand over the money for the remaining.

She also got the owner to write out a receipt that was clear that any outstanding finance obligations (despite having just dealt with that) would be dealt with by the owner, for whatever that's actually worth.

The whole extra effort was worth it to my sister because it was the car she wanted at a good price, presumably because many other buyers didn't want to go through this effort and take the risk.


sounds like fun :(

[bigdogdazza]

Guys i need help again


So i find a car i like YAY got the car details like vin, eng, chassis and gave REVS a call and to my suprise this guy has 2 loans on this car (i was like WTF).So the next morning i cruised down to the bank to ask what the procedure is with the money (borrowing 15 k of the 30k) and getting it to him so i could have my new car .

The ladie at the bank said "we cant give you the money untill he pays his debt off". My bank was saying something about getting a form signed from his bank to say he would be paying the remainder of the loan off then and there when my bank gave his bank the money.

Whats the deal with this? anyone got any advice or should i just walk away from the deal?

Ok, there isnt a problem buying a car/bike whatever with finance still owing on it. i have sold a bike with finance on it and all you gotta do is get the payout figures from the lender, and pay that amount to them, reciepts are a must and any remainder goes to the owner. If they are not willing to do business this way forget it there are other cars around.

[burnoutnut]

Ok, there isnt a problem buying a car/bike whatever with finance still owing on it. i have sold a bike with finance on it and all you gotta do is get the payout figures from the lender, and pay that amount to them, reciepts are a must and any remainder goes to the owner. If they are not willing to do business this way forget it there are other cars around.

the thing is im paying less that what he owes there will be an outstanding balance

[Tyre biter]

the thing is im paying less that what he owes there will be an outstanding balance

Therefore don't buy it until/if he pays that portion AND the bank satisfies you that upon receiving your balance the bill of sale will be lifted. Good luck with it.

Cheers, TB

[Sime]

Hey Burnoutnut. Go back to your bank and find some else to deal with who knows what they're doing. This is a very common situation and if your bank can't assist you with sorting this out, then you shouldn't be dealing with them. You've been given plenty of good advise already but another option is to get the seller to give you $1,000 cash or bank cheque and get your bank to provide you with a bank cheque made payable to the sellers finance company for the total amount. You can then just exchange cheques when you take posession of the car.

[burnoutnut]

Thanks bud

the ladie doing the loan for me is a dits..... but i even had the branch manager in there to working out what to do

[bigdogdazza]

the thing is im paying less that what he owes there will be an outstanding balance

Still not a problem as long as he comes with you on the day of purchase and hands over the remaining balance therefore completing the final payout figure and releasing the car from being encumbered. Remember et conformation in writing that the loan is satisfied in full and rego papers signed over into your name. EASY but get it in writing, none of this " yeh I will pay it out shit!" Watch the coin change hands! And a final payout figure may have some hidden costs such as payout the loan early charges or paper work fees etc. If its a car that you really want , It can be done , legally but just a little more mucking around. GOODLUCK!

[exwrx]

As said, go down to his bank/finance company and physically pay out the balance yourself and get a receipt - he will have to pay the shortfall owing.

Do not trust a buyer to pay the outstanding loan, even if you provide a bank cheque payable to his bank.fonance co - there is no guarantee he will apply the cheque against the same loan :eyes:

[burnoutnut]

Just found out this guy took the second loan out using the car has security on the 4th of jan 2010

He has 1 loan from ford and 1 from his bank this is going to be confusing as a mofo to get sorted:vpo:

Hes told me hes going to organize shit and let me know on monday, so we will see i guess

:bow::bow::)

[planetdavo]

Just found out this guy took the second loan out using the car has security on the 4th of jan 2010

He has 1 loan from ford and 1 from his bank this is going to be confusing as a mofo to get sorted:vpo:

Hes told me hes going to organize shit and let me know on monday, so we will see i guess

:bow::bow::)

Unless it's the rarest model car in Australia, is it reeeeeeeeeeeeeeally worth this much effort to buy this particular car?

[burnoutnut]

Unless it's the rarest model car in Australia, is it reeeeeeeeeeeeeeally worth this much effort to buy this particular car?


Ive been thinking that today. is it what i want? is it worth the hassle?

[bush_basha]

Still not a problem as long as he comes with you on the day of purchase and hands over the remaining balance therefore completing the final payout figure and releasing the car from being encumbered. Remember et conformation in writing that the loan is satisfied in full and rego papers signed over into your name. EASY but get it in writing, none of this " yeh I will pay it out shit!" Watch the coin change hands! And a final payout figure may have some hidden costs such as payout the loan early charges or paper work fees etc. If its a car that you really want , It can be done , legally but just a little more mucking around. GOODLUCK!

the bank is doing a revs check, the bank will not issue any amount of money out until there is no finance owing. its a common thing for a bank to do this, as then if the seller defaults on the payment, they will repo the car, regardless if he sold it.

as PD said, is it really worth doing all this hassle, epecially see'ing as tho he has 2 loans on it, and only getting one the other day, seems dodgy to me, who has 2 loans on a car anyway??

[HSV2BE]

I bought a car with finance, we simply made the cheque out to the finance company.

[acecv8]

When i got my GTS it had finance on it - i walked into the sellers financial branch with their details and paid them with cash what was owing with interest to that day and had them sign off on it and produce a reciept - i then went to the owners house paid the remaing that wasn't on the loan in cash to the owner and gave them a copy of a reciept from their loan agency.
should be as simple as that - if he has 2 seperate loans exactly the same way

[white lie]

who has 2 loans on a car anyway??

I'd say its more a case that he was short of cash and used the car as security as he's only just taken the other loan out. But regardless of the speculation, as said, is it really worth the hassle? It would obviously be a heap easier if he owed less than what the car is worth...

[bigdogdazza]

When i got my GTS it had finance on it - i walked into the sellers financial branch with their details and paid them with cash what was owing with interest to that day and had them sign off on it and produce a reciept - i then went to the owners house paid the remaing that wasn't on the loan in cash to the owner and gave them a copy of a reciept from their loan agency.
should be as simple as that - if he has 2 seperate loans exactly the same way

Thats exactly what the poster would like to do BUT what happens when the loan amount is MORE than the sale price? = If the owner doesnt havee the coin then and there to pay these loans out after the sale price is deducted the W A L K away.!!!!

[payaya]

Dodgy! Clean REV's check or get stuffed.

[payaya]

Just found out this guy took the second loan out using the car has security on the 4th of jan 2010

He has 1 loan from ford and 1 from his bank this is going to be confusing as a mofo to get sorted:vpo:

Hes told me hes going to organize shit and let me know on monday, so we will see i guess

:bow::bow::)

Bet you he does not call Monday.

[Blown 540]

is it what i want?

Only you can answer that , maybe take a few breaths , decide what you want ,dont rush into anything untill you are sure what you want, there are thousands of cars out there , there will always be another .

Me , i wouldnt touch the double loan with a 20 ft pole.

[rgmast]

Ive been thinking that today. is it what i want? is it worth the hassle?

RUN RUN RUN and then RUN some more

[duke5700]

If the sale price does not cover both loans and he is not willing for you to pay the financial institutions directly you should walk away. It is not worth the pain. There will be another car.

[1BEAST2NV]

OR

see if he can get a personal loan for the amount out standing on the 2 current loans, that way the other 2 current loans get paid out, and then who gives a shit if he doesnt put the money from the sale of the car on the new loan hahahah

that way the cars released from security, and its a win win for both, eather way he gonna have money owing on the loan as the sale price of the car isnt enough to cover both loans..

just an idea

[Merlin]

I've bought two cars in the last few years that had finance owing. Both were a pain in the ass as you have to run around doing a lot of extra's to ensure you don't end up with the bill (you really want to make sure you cover all your bases). I wouldn't do it again (simply due to the extra time and running around) unless the car was significantly cheaper than others on the market (say at least $2-3K saving).