Purchasing An Encumbered Car...

[Minko]

Just finalising the purcahse of a car but i have been told it is not 100% his, how do i sort this out? He said make a cheque out to him & the finance company but how can i be sure this is the amount owing & that he is not going to increase the loan off the car once i buy it?

Edited January 30, 2007 by Minko

[SMR33]

Do a REVS check...that way you know for sure which finance company has a vested interest.

These are about $15 or so, and if you are getting a loan for the purchase or the car, your financial institution should perform this check as part of the loan process.

Hope this helps

[Ant97GTR]

Easy do a check to find out exactly what is owing on the car. Then when it comes time to buy you send the finance company a cheque for the amount owing first...they'll release full ownership to you and you pay the seller the remaining amount.

[Minko]

Cheers, he is getting the finance company to fax me a letter with how much is owing so ill give the owner a check for him & 1 for the finance company. Whats this release ownership thing? does the finance company send me something?

[Johnny Cash]

You might want him to put the agreement in writing (signed and dated) to say that within 7 days of sale of the vehicle he will pay the amount outstanding to his relevant financial institution... just to be safe!

[mad082]

you should make the cheque out to the financial institution and post it to them from his place, or take the money to them in person.

if you make the cheque out to the institution and he doesn't give it to them then it doesn't cost you anything. it just means you only paid whatever the amount was that you gave him on top of what he owed, then you can just send the institution a cheque to pay off the car so it doesn't get reposesed.

[Minko]

All handled, bank put the debt case number on the cheque too luckily my bank=his creditor...shiny gtr in the garage :sorcerer:

[Sumo]

nice work

[Johnny Cash]

Post pics!

[SMR33]

Congrats, pleased it went well

Post pics!

Indeed

[Minko]

Cheers guys, ill try post some "as is" pics tonight.

*hmm no members ride section

Edited January 31, 2007 by Minko

[Crimpage]

You might want him to put the agreement in writing (signed and dated) to say that within 7 days of sale of the vehicle he will pay the amount outstanding to his relevant financial institution... just to be safe!

This will make absolutely no difference. The car remains the sole property of the bank until the vehicle is paid out. The only safe way to get that legally sorted is for him to get a letter from the bank saying they have no interest in the vehicle any more. It is just called a letter of no further interest, and they will only give that if the car has been fully paid out, but they are just waiting on the last payment to clear. Banks are required to clear vehicles from REVS within 48 hours.

No matter what he says / writes / does, nothing is stopping the bank from coming and taking your car off you, and they WILL bring the police to do it if you don't just hand it over.

Dave.