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

    • MBS206
      Slight brake pedal stutter after new pads

      By MBS206 · Posted

      Jack the back of the car up, pull that wheel off, pull that sensor out, and put a bore scope into the hole to inspect the outer casing, see if anything looks damaged before you pull the whole thing apart.
    • PranK
      Slight brake pedal stutter after new pads

      By PranK · Posted

      Ergh... So I pulled the speed sensor out again and the tip was shiny so I think it's rubbing the bearing. The bearing contains the magnets for the speed sensor so I think when the first sensor broke it damaged the magnet ring on the bearing.  This is just a Google image, but there is a hole going to the bearing. So when the tip broke off the old sensor I'm guessing it fouled the bearing... As the magnet is only protected by a plastic cover it would be easy to damage it. So I guess I'm doing a bearing again.   
    • GTSBoy
      Unknown sound similar to BOV on positive boost with partial throttle RB26

      By GTSBoy · Posted

      My thinking is that if the O2 sensor is shot then your entire above described experience is pure placebo.
    • silviaz
      Steps to DIY sanding car back ready for respray....

      By silviaz · Posted

      Here is the mess that I made. That filler there was successful in filling dents in that area. But in the middle area. I can feel dents. And I've gone ocer it multiple times with filler. And the filler is no longer there because i accidently sanded it away. I've chased my tail on this job but this is something else lol. So I'm gonna attempt filler one more time and if it doesn't work I'll just high fill primer the door and see where the issues are because guidecoat is of no use atm.
    • silviaz
      Steps to DIY sanding car back ready for respray....

      By silviaz · Posted

      Ok, so I think I sort of figured out where I went wrong. So I definitely overthinked it, and I over sanded, which is probably a large part of the problem. to fix it, I ended up tapping some spots that were likely to be high, made them low, filled them in, and I tackled small sections at a time, and it feels a lot better.    I think what confused me as well is you have the bare metal, and some spots darker and some are lighter, and when I run my finger across it, it' would feel like it's a low spot, but I think it's just a transition in different texture from metal to body filler.    When your finger's sliding on the body filler, and crosses over to the bare metal, going back and forth, it feels like it's a low spot. So I kept putting filler there and sanding, but I think it was just a transition in texture, nothing to do with the low or high spot. But the panel's feels a lot better, and I'm just going to end up priming it, and then I'll block it after with guide coat.   Ended up wasting just about all of my filler on this damn door lol  
×
×
  • Create New...