Question In Regards To Buying A Car With Finance On It.

[Longz]

Hey guys needed a bit of help in regards to purchasing a car with money still owing on it.

My mate is currently looking at purchasing a car it has a good amount of finance owing on it say about 70k ?

The seller is having problems paying back the car.

Is there anyway for my mate to buy this car without the finance transferring over to him / risk it getting repossessed ?

[Husky33]

Only if the amount owing on the car is less than the purchase amount.

You have to find out who the vehicle is encumbered to.

Then your mate would make two cheques. One to the finance company for the amount owing, and the rest of the money to

the seller of the vehicle.

That's the only way to do it. Totally risk free and not much hassle.

[D_I_F]

Any encumbrance you have a risk of having that car repossess no mater how much finance us powering on the vehicle even if I it was k the company is entitled to take it and sell it of to recover the funds. My opinion is don't touch it until it's been cleared.

Otherwise you can lose all your money too..

[r32-25t]

Only if the amount owing on the car is less than the purchase amount.

You have to find out who the vehicle is encumbered to.

Then your mate would make two cheques. One to the finance company for the amount owing, and the rest of the money to

the seller of the vehicle.

That's the only way to do it. Totally risk free and not much hassle.

This ^^

[Aussie_Delivered_R32_GTR]

To play it safe I would ask for a letter from the finance company clearly showing what the owing amount is.

This is normally refereed to as the payout figure.

In addition to this figure, the letter will also state valid up to a particular date.

Now, if the seller is overdue on his repayments there may be a daily interest rate penalty although most companies adjust this monthly.

I wouldn't not buy a car because of this but I would want to talk to the finance company to confirm the numbers before handing over the money.

Good Luck!

Bob.

[xntrq]

Only if the amount owing on the car is less than the purchase amount.

You have to find out who the vehicle is encumbered to.

Then your mate would make two cheques. One to the finance company for the amount owing, and the rest of the money to

the seller of the vehicle.

That's the only way to do it. Totally risk free and not much hassle.

This. Pay amount owed to the financial institution and get a written letter on their letterhead to confirm that payment has been made. Pay the guy the difference and get him to sign a peice of paper to state that he accept full responsibility for the finance and that the difference has been paid.

Any encumbrance you have a risk of having that car repossess no mater how much finance us powering on the vehicle even if I it was k the company is entitled to take it and sell it of to recover the funds. My opinion is don't touch it until it's been cleared.

Otherwise you can lose all your money too..

Not all entirely true. If you have signed written evidence from the financial institution, it will be fine. Only if in the event where your mate gives him the full ammount for the car, and the seller doesn't pay a cent to the financial institution, then you will have a major problem.

To play it safe I would ask for a letter from the finance company clearly showing what the owing amount is.

This is normally refereed to as the payout figure.

In addition to this figure, the letter will also state valid up to a particular date.

Now, if the seller is overdue on his repayments there may be a daily interest rate penalty although most companies adjust this monthly.

I wouldn't not buy a car because of this but I would want to talk to the finance company to confirm the numbers before handing over the money.

Good Luck!

Bob.

This is exactly what my mate did when he bought a 370z. Had all paperwork and evidence to show the exact amount owed against the selling amount. Paid both parties and had everything sorted smoothly. The seller of the car only received $250 LOL.

[Yo-Yo]

Is your mate also financing to buy this car or paying cash?

if financing they may not be able to secure the loan while the vehicle is still encumbered to another financial institute so it would be a catch 22 situation

not many banks go to 70k+ on unsecured finance

[Longz]

the remaining 70k would of been payed out via bank cheque interesting how some people can screw up with a car so much lol..

[GTR-N1]

I did what Simon (Husky) said when I bought a Euro car gulp* an Alfa.

I asked who held an "interest" in the Alfa and it was a finance company in Burwood.

I made out 2 bank cheques and with the seller present, I gave 1 to the finance institution and received a clearance letter in exchange.

I then gave the other cheque to the seller and he gave me a bill of sale.

It all happened on the same day Longz.

It gets really sticky if as Yo-Yo says, your friend is buying on finance himself.

[Yo-Yo]

the remaining 70k would of been payed out via bank cheque interesting how some people can screw up with a car so much lol..

So you mean he's paying cash ie not financing?

then I would follow the above advice & have paperwork from the finance company with a payout figure, make the cheque amount payable ONLY to the finance company for the payout figure owing (I'd also contact the finance company directly to see whether they would want an account# on the cheque, some companies like ge finance for eg. can be very particular about how the cheque needs to be made out)

Then square up the remaining sale amount, if any, directly to the seller.

P.S this wouldn't happen to be the white Nur you've got for sale?

[Longz]

No , Not my NUR

My NUR is 100% not on revs meaning no finance , not written off , not stolen lol

[Longz]

It's for a M3 my friend was looking at while it seemed like a good car ,

A proper check to BMW the finance people showed the finance owing was 120k

So the seller is quiet dodgy. Told him to stay clear

[GTR-N1]

Even dodgy sellers can get desperate Longz.

Whilst lots of companies are running 'lean n mean' atm, there are a few more repossessions around F/S.

So he may come back at your friend > should we stay tuned?

[Yo-Yo]

It's for a M3 my friend was looking at while it seemed like a good car ,

A proper check to BMW the finance people showed the finance owing was 120k

So the seller is quiet dodgy. Told him to stay clear

wait until it goes to pickles auctions when it gets repossessed lol

edit: I wasn't implying anything about your NUR dude, was just curious as you were selling it for around the same price

tell your mate M3's are gay NUR's are where it's at

[Pezhead]

On Wifey's new car she called the bank. They said that if you purchase a car with an encumberance you take ownership of that encumberance when you take posession of the car if it isn't resolved. So buyer beware.

[Berk]

Good thing you can't do a free REVS check anymore aye ^^^^^