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

    • Dose Pipe Sutututu
      R34 GTR running rich and noisy turbo coincidence

      By Dose Pipe Sutututu · Posted

      CAS maybe?
    • silviaz
      Recomended Coolant For Gt T R34

      By silviaz · Posted

      What copper washer do you guys use on the bleeder bolts? The existing one I have I had no idea where to find it in a local store, I did buy some online but that are only 1mm thick whereas my old one is 2mm+ thick and when I put the new washer out and squeeze the top radiator hose I can hear a bit of air but not with the old one. Does this matter? The new one doesn't leak, but the inner diameter is a bit loose whereas the old one threads on the bolt.
    • donut_kng
      R34 GTR running rich and noisy turbo coincidence

      By donut_kng · Posted

      Howdy all, after being out a few weeks ago on a spirited drive in my GTR I have 2 issues that oddly have appeared at the same time. Whilst accelerating quickly through the gears all of a sudden i’ve lost power at the top of third gear (below redline around 6000rpm) for no obvious reason.    From that point onwards the car has been running rich on idle, won’t really rev under load without a ton of black smoke and the odd backfire, and dying as a pull up to a set of lights unless I keep the revs up around 1500rpm. In addition when shutting down the car that same night (I was 10 minutes from home) I noticed one of the turbos was significantly noisy on wind down when shutting off the engine. After letting the car cool down overnight it starts up fine, although once it gets to temp the revs start to creep up and down, the exhaust is darker than it should be and it also sounds like it’s running rich (fat note) I’ve put a new set of plugs in it - no change, the old plugs all seemed OK with two of them being somewhat richer/fueled up than the other 3 with 1 being borderline. I’ve smoked tested the intake system via the front of the Turbos, found a split vacuum hose going to the factory boost gauge sender, which I have since replaced.  Also found another leak on the gasket coming off the rear turbo outlet, have also replaced this. After fixing both of these leaks - still have the running rich issue. I’ve also tried another pair of AFM’s - no change here After pulling off the front turbo intake pipes, there is obvious shaft play in the front turbo, which now hisses loudly on light revvs although I can’t see why this would make the car run funny even under idle. I’m curious to know why it’s running rich before I potentially replace/rebuild turbos. The car is completely stock <50,000kms  other than an exhaust. Oil and coolant are all clear. I haven’t bothered with coil packs as it looks like they won’t be the issue due to condition of the plugs. Any help appreciated as I cry myself to sleep!
    • Rezz
      R34 4 door side skirt identification

      By Rezz · Posted

      No probs at all. I used to love trying to dig up obscure info for those in need where possible going back 20+ years on SAU.  I did have another look and couldn't come up with any closer match. I'm leaning towards those skirts in your first pic are custom fitments, cut down/extended or from another car entirely and modded to fit an R34 sedan. I would've thought someone in Japan had them and taken a photo at some stage over the last 2 decades but there's nothing. Someone out there must know surely.
    • Rezz
      2001 R34DE

      By Rezz · Posted

      Welcome mate. Any pics? Even with a DE I'd be well happy if I had that as a 1st car. 
×
×
  • Create New...