Jump to content
SAU Community

Purchasing A Used Car With Finance On It

Aqua

By Aqua,
in General Automotive Discussion

 Share

Recommended Posts

Aqua Rising Star

Aqua

Posted
Posted

Hi everyone, I am located in Syd and I am about to buy a financed car from QLD

Just two questions for now:

1. Just wanted to know what are the usual or best procedure to purchase a financed car (which hopefully secure both seller/buyer from running away)

2. Whats the best way to deliver the car from QLD to Syd? and which company would you strongly recommend?

Thanks all in advance!

GTR-N1 Grand Master

GTR-N1

Posted
Posted

Things can get really messy if the car is encumbered to two institutions rather than one!

Assuming it's one, you need to gain permission from the seller to contact that institution through a contact person who will also be present on the date of payout and transfer and settlement.

Then you contact that person at that institution to get the final payout figure in writing > scan it > email it to you.

You make out two bank cheques - one equal to the payout figure in the name of the institution - the balance in the name of the seller.

But if you're not going to be present, two EFTs will have to be arranged which is more risky if you don't trust the seller.

Arrange to send the two cheques to the institution in readiness for the date of release/transfer/settlement > then picked up by the transport company of your choice.

Me? I'd fly up there > use two bank cheques > drive the car home!

  • Like 1
Seano350GT Veteran

Seano350GT

Posted
Posted

Do whatever you can to avoid buying an encumbered car at all.. As Terry says, it can get messy.

FYI if it's dealer used car, it is illegal for them to sell you an encumbered vehicle as it must have a clear title.

ras1983 Experienced

ras1983

Posted
Posted

Plenty of encumbered cars are sold by legitimate owners either looking to upgrade or to get rid of the loan, so don't avoid a car just because it is encumbered. What you want to do is suss out the seller. A legitimate seller will organise for you to contact the finance company directly to find out how much is owed and how to pay it off. So ask the seller who the car is financed to, and then start chasing it up yourself. Once you agree on a price with the seller, you pay the finance company the amount owing to it and the balance to the seller, and you get to take home an unencumbered car.

The above is based on my experience. I had a car loan on an XR5 with BankMECU that I sold to a private buyer early last year. I called BankMECU and told them person X was looking to buy the car. I was able to see the balance owed to BankMECU the whole time so I was able to verify when the loan was paid off, and the buyer was talking directly with BankMECU and sent the payment to them, so the buyer was also able to verify when the loan was paid off and the encumbrance removed. He paid me the balance and took the XR5 home.

So in summary ask to speak with the finance company directly and sort it out with them. If the buyer isn't willing to do that then you are better off walking away.

Aqua Rising Star

Aqua

Posted
  • Author
Posted

Thanks for all of the suggestion guys!

I think I have my plan now:
I will fly up there with 2 bank cheques ready, sign the transfer of ownership agreement etc give him the cheque (that goes to him), then attend bank with
him together to deposit the other cheque (that goes to the finance company). After that I will take the car and wait for courier service to deliver it, so I watch the car get loaded onto the courier. Then I fly back to Syd.

That should be the best way?

Cheers guys

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
 Share
Go to topic listing


  • Similar Content

  • Latest Posts

    • GTSBoy
      Mistakes were made, my R34 Story

      By GTSBoy · Posted

      Nah. Was just wondering if you were having a small stroke or if there was some slur/gaf/inside joke that I wasn't aware of.
    • MBS206
      Mistakes were made, my R34 Story

      By MBS206 · Posted

      That was a fark up, it's Salamanca Place I was thinking of. And now I'm curious as to what potential slur/gaf I have caused with Salamander Road, ha ha!
    • Kinkstaah
      Mistakes were made, my R34 Story

      By Kinkstaah · Posted

      Actually everyone on the roads was really well behaved. The only person that did any minor tailgating was a local hoon in a Turbo Focus. Unfortunately we weren't going the same way so there was no grand initial D touge battle. Lots of people pulled over and let me through. The amount of "Hey man nice car, omg skyline, nice 34 man woo" was suprising. Like really suprising. Like almost annoying. My partner was obviously surprised, she'd never seen anyone in the real world point out the car/like the car/want to chat about the car before, so to have like 3 people per day mention it was notable, I could finally say SEE? SOMEONE THINKS THEY'RE COOL. Everyone was also pretty suprised about the weather. Every day was dry and about ~13-14C. Mount Wellington had a sign that said they close the gates at 9pm and I was heading up there at about ~7:30. It was VERY apparent that conditions were getting significantly worse by the minute on the way up and down. The road on the mountain was terrible though, it's no driving road. I have various suspension related questions now. Luckily it was only about 20 minutes from where we were staying to the top of the mountain as said Google maps. We only had the 2 nights in Hobart. We went to the Farm Gate Market though which was really good - And went down to the Hastings Thermal springs/caves down there during the day. I'd definitely be up for going back again, so luckily there's a few more sights yet to see. Didn't get to do the west coast/queenstown/cradle mountain so this was supposed to be a 'scouting' trip anyway of sorts if I were to one day do/take part in/organize a more car-focused trip. As for the boat, it wasn't bad. Well it was bad, but not in the way you're thinking. We did the night trip which leaves at 6:45 (though you have to be there ~2 hours earlier) and arrives the next morning at about 6am. There is nothing to do on the ship. If you plan accordingly and bring a book/tablet/show to watch/charger you can just chill out, take some Travacalm and just sleep through it. The food there is an extremely basic buffet that costs $32 a plate, or $14 for a $3 pizza. The way back we had a travel kettle and a few different types of cup noodles and made our own tea/coffee in the room. This was a far superior way to do it. At the very least book one of the rooms with beds. I guess as we were in the off season we didn't have room mates. You get an option for rooms with 4 beds (2x bunks) or a room with just the two bottom beds. There's also some option for a deluxe queen bed but it's much pricer. We've been on sleeper trains in Asia before so we figured this is similar (and it was)
    • GTSBoy
      Mistakes were made, my R34 Story

      By GTSBoy · Posted

      Was that deliberate?
    • Kinkstaah
      gtr hood match gt/gtt front fenders?

      By Kinkstaah · Posted

      You just gotta be really, really, really clear and decisive with what you want your end product to be. 99% of people who want this conversion aren't "I want to run a 295 front tyre!" so they don't really need the widebody. They just want the OEM body to look a little less dumpy, so bonnet, bar, skirts job done with some camber, stretch, slam. It's when you want that, but then decide to pivot later you get big problems. See also if you're willing to get an all in one fibreglass bar, and you're willing to accept fibreglass problems like cracking the entire item on a driveway, instead of just a piece attached to the bottom, etc etc etc. Decide this all before buyin'.
×
×
  • Create New...