Jump to content
SAU Community

Recommended Posts

Hey guys and girls,

Im buying another car as ive sold my GTR.

Ive found one i like and ive put down a deposit.

He has said he had to take a car loan out to buy the car and is still paying it off.

As me the buyer what do i have to do differently ? if anything?

As ive never bought a car that is under finance.

Link to comment
https://www.sau.com.au/forums/topic/280046-buying-a-car-with-a-loan-on-it/
Share on other sites

Wouldn't you need to find out how much he has left owing on the loan and then ensure that the money you are paying him for the car is going to that loan, rather than in his pocket?

So, payout the loan (thus car is fully owned by the seller), than whatever is left behind goes into he's pocket.

Think that would be the procedure

Wouldn't you need to find out how much he has left owing on the loan and then ensure that the money you are paying him for the car is going to that loan, rather than in his pocket?

So, payout the loan (thus car is fully owned by the seller), than whatever is left behind goes into he's pocket.

Think that would be the procedure

In this case lets just say the dude is selling his car to you for $15K....he has $10K owing to the bank....then what you would be doing is paying $10K to the finance company (in this case BANK) and giving the DUDE (the seller) his $5K.....i would be personally going to the bank and asking them for advice and they will be able to point you in the right direction and at the same time organise everything for you.....

if you paid the DUDE $15K and he does a runner.....guess what....your the owner of the new vehicle....and you most likely will be required to pay the payout amount.....

Same with insurance when your car is financed....the insurance company will payout (in case of a writeoff) the financial company what you owed them and then give you whatever is left

TREAD WITH CAUTION ON THIS ONE MY FRIEND

Yep all the advice above is spot on...

Get payout figure on his loan, make out cheque to his finance company, then cash for any difference or seperate cheque. Do the signing of changeover forms at the bank when he deposits the cheque(s) and MAKE SURE YOU GET A PRINTOUT SHOWING ZERO BALANCE ON THE LOAN!!!

Good luck.

well i have a contradicting story. When i purchased my s14 the guy had finance on it. I paid him, he continued paying his loan. When i went to sell it a guy backed out cause he found out it still had a finance against it so i called the company the finance was with and questioned them. 2 different times i rang to be sure i was getting the right answer and they informed me that if he did a runner they would be chasing him for the money as the finance is in his name. They wouldnt be involving me at all, be it for the car or money. Havnt heard from them to this day and i see the car kicking around every now and then.

As Luke said, the only time they will come chasing you is if the loan was secured against the car. In which case the bank will order repossesion papers for the car if the person named on the finance defaults. But i could be wrong, had a similar situation a few years ago too.

James is correct.

If the owner took out a personal loan to purchase the car but wasn't secured against the car then you'd be safe buying it cause if he did the runner the finance institution would chase him.

However, if the loan was secured against the car, either pay the finance company direct (and make sure you keep the receipt and have the rego papers) or avoid it with a 10ft pole.

Thanks for the advice. As it turns out its only a PERSONAL loan not a loan on the car so its fine. But as said above IF it was a car loan. Best way to do it (or as i was told by his bank) would be to go in with him to the bank with the cheque and pay it out there and then with him. theyll give you the loan payout statement there and then

Even if its a personal loan it can still be secured agasinst the vehicle. But yeah, do as you said and be there when its paid out and get a print out of the balance sheet for the loan. Probably wouldn't hurt to ask if it can be closed while your there too.

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now


  • Similar Content

  • Latest Posts

    • It was a great, but typical track day, and some VB was ingested at the night time debrief 🤪
    • And so, to round this out, I couldn't be happier to confirm @MBS206 has decided to buy the car. He drove down from sunny QLD with a trailer last week and it is off to its new home today. I'll let Matt confirm on next steps but I understand broadly that the plan is to leave it pretty much as is, and just get some quality wheel time with a nicely balanced car that is pretty much track ready. There are a few a jobs still to be done first but nothing too major and I think its a very smart buy Dinner last night at the Paragon with a round of VBs (mostly) for Neil
    • Well, 50 pages and the end of a chapter for this car. We took it out for a shakedown at Wakie yesterday, and everything went well. There were a couple of niggles: - Oil cooler fitting leak - tightened, cleaned, stopped leaking - Radiator cap overflow fitting was leaking....Mark called it, the overflow fitting was threaded in and not tight....tightened, tested and held pressure - Small oil leak at the rear of the block, probably the turbo oil feed - too hot to get at it comfortably but probably just needs to be nipped up - leak at the driver's side rear brake line where it meets the hardline. Fitting wasn't loose, so Matt backed it off and back on, no further leaks - there's also a leak somewhere on the top of the fuel tank, maybe that cross over fuel line - that was has been left to fix when its on a hoist Otherwise than those niggles the car went great, turned great and stopped great so it was a very successful day out. I'm always really nervous when a car first hits the track after a long break, especially with a brand new engine as well but it was great. VID-20251011-WA0007.mp4  Big thanks to @The Bogan who dropped by and helped out, @MBS206 and my nephew Lachlan the apprentice.  Neil's wife Mel also surprised the hell out of all of us by dropping by; she's up in Tamworth these days but was travelling to Melbourne so had plausible deniability for turning up at the garage, it was great to see her but also obviously a bit sad all round.
    • Skyline R33 Series 2 sedan tail lights in excellent condition. These are becoming harder to find, especially in this state.    BOTH SETS ARE IN FANTASTIC CONDITION (REFER TO PHOTOS)    ✅ No broken covers or cracks ✅ Lenses are in flawless condition ✅ All rear mounting lugs intact ✅ Comes complete as pictured ✅ Perfect for restoration, replacement, or upgrade   These lights are ready to go, no surprises just quality OEM parts.   These are definitely one of the better sets we have seen in a while. With minimal wear and tear they will come as you see. Bear in mind they are not brand new they are almost 30 years old now. To find them in this condition isn’t easy they can only be obtained on the second hand market.   Australia Wide Postage Available At Buyers Expense. Silver Set:$850 Grey Set:$850 PM Me for purchase or any other questions  IMG_2166.dng IMG_2165.dng IMG_2172.dng IMG_2173.dng IMG_2174.dng IMG_2179.dng IMG_2180.dng IMG_2260.dng IMG_2258.dng IMG_2259.dng IMG_2261.dng IMG_2266.dng IMG_2273.dng IMG_2274.dng IMG_2276.dng
    • Unsolicited advice? Keep the engine as close to stock as you can. Nothing wrong with adding some boost and making a little more power, but given where you are, you really don't want to try to make it into a monster. I can't imagine the roads are up to it, and the lack of locla support when it grenades will be a ball ache. FWIW, If there is a dyno around that you can access, then brand new injectors are a good idea, which will lead you to (at least) putting a Nistune in it, which will allow you to put an R35 AFM on it, all of which will make it possible to make it much much nicer to drive and live with.
×
×
  • Create New...