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Encumbered Vehicles

PRIMO

By PRIMO,
in General Automotive Discussion

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PRIMO Experienced

PRIMO

Posted
Posted

Hi Have Customer friend who has asked an question i dont really know so i thought id post it here for peoples ideas or opinions.

Story : customer has bought a vehicle Encumbered to Esanda finance knowingly as the seller has told them it will be paid out once funds have been recived for the sale of the car.

Now the car is still encumbered 4 weeks later and cannot contact the seller.

Question being he asked was what steps could someone do to recover funds or force the finance company to do some checking to release the vehicle as they would know where the seller was as assumption he was still paying the loan as it was attached to his morgage on his house. what other things could you do, are you protected in anyway.

I have been aware that if you insure the vehicle also and its crashed or writen off the monies dont come to you either it goes to the encumbered financee, so this is worring also if you crash. your hard ernt money goes to paying off the loan for the person you allready paid.

has anybody else been in this position ? and thoughts or help or even experiance would be good to know and help out other people in same position.

When buying an encumbered vehicle 1 would call the finance company give details and find out the payout then make a check to the finance for the remainder of loan and any left over would be another check to seller. this is the only way 1 should do it in the private market.

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.:: GimpS-R34 ::. Grand Master

.:: GimpS-R34 ::.

Posted
Posted (edited)

yes he should have had a cheque for the bank.. and rest for the owner.. doesnt he know where the previous owner lives.. should be on the transfer papers.. go confront him...

also the car would be against the loan.. not his house.. otherwise there would be no bank interest in the car...

Edited by .:: GimpS-R34 ::.
syfon Veteran

syfon

Posted
Posted

When you buy an encumbered vehicle, you need to get a letter from the seller's finance company with the amount of funds remaining on the loan. Pay a cheque to the finance company to, and then whatever is remaining of the price, you pay to the seller, then you have yourself a vehicle that is not encumbered.

Your friend should have acquired a letter from REVS for his own protection, but if the vehicle is encumbered and he knew that before buying the vehicle, why didn't he pay out the finance company for the loan instead of paying out the owner???

mad082 Grand Master

mad082

Posted
Posted

i'm guessing he paid the money to the person out of good will thinking that the seller would be honest and pay it straight off.

as for protection for the buyer, unless he got the seller to sign the reciept saying that the car was encumbered and that the seller would pay off the loan then there isn't much he can do. he would have to take the guy to court if the car was reposessed, and that would be a while after the car was repo'd so he'd be out of pocket for a while, and he may not even get any money back.

PRIMO Experienced

PRIMO

Posted
  • Author
Posted

any way i will try help out with legal action thruogh a solicitor and see what we can come up with. any other ideas are more than welcome.

will see if processing a few legal letters to his house will provoke a response at least as far as we know his GF and 2 kids still lives there for now.

  • 2 weeks later...
GTR-N1 Grand Master

GTR-N1

Posted
Posted
any way i will try help out with legal action thruogh a solicitor and see what we can come up with. any other ideas are more than welcome.

will see if processing a few legal letters to his house will provoke a response at least as far as we know his GF and 2 kids still lives there for now.

Yes, if the "Sympathy" button won't work, it's time to play "Hard-ball".

If the seller wanted to play "Scammer", this is exactly how one would behave.

  • 3 weeks later...
MSTRshenanigans Experienced

MSTRshenanigans

Posted
Posted

Basically he is screwed. He needs to have the old/current owner get a payout figure from the financier. Basically when he paid for the car he should have paid the o/s amount to the financier and the rest to the old/current owner.

Cowboy1600 Grand Master

Cowboy1600

Posted
Posted

If he's in the navy, I'd get in touch with them.

They don't take too kindly to their own beign such flamin mongrels.

His CO may have a quiet word in his ear and suggest he pay back the money to the finance company.

SECURITY Grand Master

SECURITY

Posted
Posted
Basically he is screwed. He needs to have the old/current owner get a payout figure from the financier. Basically when he paid for the car he should have paid the o/s amount to the financier and the rest to the old/current owner.

that pretty much sums it up.

the car didnt belong to the guy in the first place, it was the financier's. when you secure a loan with property it then becomes theirs till its paid off.

on the other hand, if your friend had a bill of sale which said "Seller warrants that it is the legal owner of said motor vehicle, that said motor vehicle is being sold free and clear of all claims and encumbrances, that Seller has full right and authority to sell and transfer same, and will protect and indemnify Buyer from all claims adverse thereto". then its a case of fraud and would have more of a chance of recovering the car/money.

i've got a standard bill of sale which pretty much covers you for anything dodgy if anyone is interested.

PRIMO Experienced

PRIMO

Posted
  • Author
Posted

thanks for all the replies but more to the fact ... has any one tried to sue the seller for illegaly gaining funds for financial gain. i believe its possible to do it,

if anyone has done this let us know your outcome.

regards, Phil

XRATED Veteran

XRATED

Posted
Posted
If he's in the navy, I'd get in touch with them.

They don't take too kindly to their own beign such flamin mongrels.

His CO may have a quiet word in his ear and suggest he pay back the money to the finance company.

x2

ADF (Australian Defence Force) is a small circle...

If it's coming from his CO, it ain't gonna be a suggestion!

Australian government agencies don't like bad press or pissed off civies....

J.

  • 2 weeks later...
Cowboy1600 Grand Master

Cowboy1600

Posted
Posted
x2

ADF (Australian Defence Force) is a small circle...

If it's coming from his CO, it ain't gonna be a suggestion!

Australian government agencies don't like bad press or pissed off civies....

J.

Yeah, if you get nothing from the Navy, call ACA and tell them the Navy is harboring conmen and fraudsters.

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