Buying A Car That Has Money Owing On It

[ob1]

guys,

do you know the process for buying a car that has finance owing on it? Seems like a catch-22. The current owner cant pay it off until he gets my money, but i dont want to give him the money until it's free of the debt.

does he get his finance company to provide a note of clear sale or something that indemnifies me against his debt?

thanks,

sean.

[ferni]

If the owner owes 10k and you want to buy the car for 20k, you get 2 cheques, 1 for 10k to the finance company directly and 1 to the owner for 10k ....

He has to sort out a final payment amount with the finance company first, then you pay that, and you pay him....

[Freddy Kruger]

what if the car owes more than its being sold for? say it was bought new, but is now worth less? like a VY commodore for example. bought for $30k or whatever but now are only about $15k?

[RBFIRE]

what if the car owes more than its being sold for? say it was bought new, but is now worth less? like a VY commodore for example. bought for $30k or whatever but now are only about $15k?

No deal!

or wait till the owner pay off the debt.

a friend was about to buy a sti for 33k, but owners owes also 33k

so they taking it to the bank, ask to write a cheque and pay right away to the financial company!

but didnt went through cos it was runing on 3 cyc!

[ob1]

If the owner owes 10k and you want to buy the car for 20k, you get 2 cheques, 1 for 10k to the finance company directly and 1 to the owner for 10k ....

He has to sort out a final payment amount with the finance company first, then you pay that, and you pay him....

yep thx for that. We checked with his finance company and they said similar. I could either pay the amount owing to them and the balance to the seller, or wait for the seller to pay it off, if he had the means. Suncorp finance for example will accept payment by cheque or BPay.

I told the seller it was too much hassle (and still some risk) for me to be dealing with his finance company, so i've put off the purchase until he pays them out in full and REVS has registered no debt.

[TracidTrax]

what about a security certificate, VIC has them though im not exactly sure on what they do

Edited May 22, 2006 by TracidTrax

[wrxhoon]

yep thx for that. We checked with his finance company and they said similar. I could either pay the amount owing to them and the balance to the seller, or wait for the seller to pay it off, if he had the means. Suncorp finance for example will accept payment by cheque or BPay.

I told the seller it was too much hassle (and still some risk) for me to be dealing with his finance company, so i've put off the purchase until he pays them out in full and REVS has registered no debt.

Actualy its less risk buying a car that has money owing on it. This way you know for sure you are going to get a clear tittle. Just pay the bank first and the balance to the owner, very simple.

[hayden49]

Get a REVS certificate, it makes you not liable for any loan owing on the car the day you purchase it.

cheers

[r34_skyline]

my bro brought a R34 GTT with finance owing on it.

this is what he did:

-Done all the required checks etc(car, stolen, ownership)

-Call up revs the day before and purchased a certificate(transaction of sale must be completed in 24hours)

-Go to the bank(the financial institution where the original owner took out the loan) and pay off the remaining amount

-Go to VicRoads, change details and pay Stamp duty(4% in Vic, 3% in NSW)

-Pay the remaining balance to the owner(if applicable)

-A week later, the original owner should recieve a letter stating theres no finance owing on the vehicle. get a photocopy of this.

everything should be sweet

Edited May 22, 2006 by r34_skyline

[The_Paladin]

REVS checks have to be done 24 hours before purchase as well for them to be valid.

[hayden49]

My revs certificate was faxed in at 830am on the dot and had it by 8:45am, after that i drove to the gold coast to pick up my baby.