Jump to content
SAU Community

Encumbered Vehicles

PRIMO

By PRIMO,
in General Automotive Discussion

 Share

Recommended Posts

PRIMO Experienced

PRIMO

Posted
Posted

Hi Have Customer friend who has asked an question i dont really know so i thought id post it here for peoples ideas or opinions.

Story : customer has bought a vehicle Encumbered to Esanda finance knowingly as the seller has told them it will be paid out once funds have been recived for the sale of the car.

Now the car is still encumbered 4 weeks later and cannot contact the seller.

Question being he asked was what steps could someone do to recover funds or force the finance company to do some checking to release the vehicle as they would know where the seller was as assumption he was still paying the loan as it was attached to his morgage on his house. what other things could you do, are you protected in anyway.

I have been aware that if you insure the vehicle also and its crashed or writen off the monies dont come to you either it goes to the encumbered financee, so this is worring also if you crash. your hard ernt money goes to paying off the loan for the person you allready paid.

has anybody else been in this position ? and thoughts or help or even experiance would be good to know and help out other people in same position.

When buying an encumbered vehicle 1 would call the finance company give details and find out the payout then make a check to the finance for the remainder of loan and any left over would be another check to seller. this is the only way 1 should do it in the private market.

Link to comment
https://www.sau.com.au/forums/topic/331745-encumbered-vehicles/
Share on other sites
.:: GimpS-R34 ::. Grand Master

.:: GimpS-R34 ::.

Posted
Posted (edited)

yes he should have had a cheque for the bank.. and rest for the owner.. doesnt he know where the previous owner lives.. should be on the transfer papers.. go confront him...

also the car would be against the loan.. not his house.. otherwise there would be no bank interest in the car...

Edited by .:: GimpS-R34 ::.
syfon Veteran

syfon

Posted
Posted

When you buy an encumbered vehicle, you need to get a letter from the seller's finance company with the amount of funds remaining on the loan. Pay a cheque to the finance company to, and then whatever is remaining of the price, you pay to the seller, then you have yourself a vehicle that is not encumbered.

Your friend should have acquired a letter from REVS for his own protection, but if the vehicle is encumbered and he knew that before buying the vehicle, why didn't he pay out the finance company for the loan instead of paying out the owner???

mad082 Grand Master

mad082

Posted
Posted

i'm guessing he paid the money to the person out of good will thinking that the seller would be honest and pay it straight off.

as for protection for the buyer, unless he got the seller to sign the reciept saying that the car was encumbered and that the seller would pay off the loan then there isn't much he can do. he would have to take the guy to court if the car was reposessed, and that would be a while after the car was repo'd so he'd be out of pocket for a while, and he may not even get any money back.

PRIMO Experienced

PRIMO

Posted
  • Author
Posted

any way i will try help out with legal action thruogh a solicitor and see what we can come up with. any other ideas are more than welcome.

will see if processing a few legal letters to his house will provoke a response at least as far as we know his GF and 2 kids still lives there for now.

  • 2 weeks later...
GTR-N1 Grand Master

GTR-N1

Posted
Posted
any way i will try help out with legal action thruogh a solicitor and see what we can come up with. any other ideas are more than welcome.

will see if processing a few legal letters to his house will provoke a response at least as far as we know his GF and 2 kids still lives there for now.

Yes, if the "Sympathy" button won't work, it's time to play "Hard-ball".

If the seller wanted to play "Scammer", this is exactly how one would behave.

  • 3 weeks later...
MSTRshenanigans Experienced

MSTRshenanigans

Posted
Posted

Basically he is screwed. He needs to have the old/current owner get a payout figure from the financier. Basically when he paid for the car he should have paid the o/s amount to the financier and the rest to the old/current owner.

Cowboy1600 Grand Master

Cowboy1600

Posted
Posted

If he's in the navy, I'd get in touch with them.

They don't take too kindly to their own beign such flamin mongrels.

His CO may have a quiet word in his ear and suggest he pay back the money to the finance company.

SECURITY Grand Master

SECURITY

Posted
Posted
Basically he is screwed. He needs to have the old/current owner get a payout figure from the financier. Basically when he paid for the car he should have paid the o/s amount to the financier and the rest to the old/current owner.

that pretty much sums it up.

the car didnt belong to the guy in the first place, it was the financier's. when you secure a loan with property it then becomes theirs till its paid off.

on the other hand, if your friend had a bill of sale which said "Seller warrants that it is the legal owner of said motor vehicle, that said motor vehicle is being sold free and clear of all claims and encumbrances, that Seller has full right and authority to sell and transfer same, and will protect and indemnify Buyer from all claims adverse thereto". then its a case of fraud and would have more of a chance of recovering the car/money.

i've got a standard bill of sale which pretty much covers you for anything dodgy if anyone is interested.

PRIMO Experienced

PRIMO

Posted
  • Author
Posted

thanks for all the replies but more to the fact ... has any one tried to sue the seller for illegaly gaining funds for financial gain. i believe its possible to do it,

if anyone has done this let us know your outcome.

regards, Phil

XRATED Veteran

XRATED

Posted
Posted
If he's in the navy, I'd get in touch with them.

They don't take too kindly to their own beign such flamin mongrels.

His CO may have a quiet word in his ear and suggest he pay back the money to the finance company.

x2

ADF (Australian Defence Force) is a small circle...

If it's coming from his CO, it ain't gonna be a suggestion!

Australian government agencies don't like bad press or pissed off civies....

J.

  • 2 weeks later...
Cowboy1600 Grand Master

Cowboy1600

Posted
Posted
x2

ADF (Australian Defence Force) is a small circle...

If it's coming from his CO, it ain't gonna be a suggestion!

Australian government agencies don't like bad press or pissed off civies....

J.

Yeah, if you get nothing from the Navy, call ACA and tell them the Navy is harboring conmen and fraudsters.

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

    • Wazmond
      Stock rb25det neo questions

      By Wazmond · Posted

      Hows your intake piping? Are you still running stock? Having in the stock AFM position would mean, if the BOV was shut/venting out, it'd create the almost stalling kind of effect right // "the rich pulse behaviour" due to MAF thinking air is flowing ? But this would be better than having the bov in the stock position + MAF on/just before cross over piping right?
    • GTSBoy
      Stock rb25det neo questions

      By GTSBoy · Posted

      Essentially, yes. Although I wouldn't put the AFM on the crossover pipe. I'd want to put it into what amounts to the correct size tube, which is more easily done in the intercooler pipework. I bought a mount tube for card stile AFM that replaces the stock AFM - although being a cheap AliExpress knockoff, it had not flange and I had to make and weld my own. But it is the same length and diameter as the stock RB AFM, goes on my airbox, etc etc. I don't have a sick enough rig to warrant anything different, and the swap will take 5 minutes (when I finally get around to it and the injectors & the dyno tune).
    • Wazmond
      Stock rb25det neo questions

      By Wazmond · Posted

      So to summarise, the best thing to do is to move recirc to between turbo and IC, and maf on the crossover pipe. Meaning I'd need a recirc flange, drill a hole in the piping on turbo outlet area. And drill hole on crossover to fit/weld maf sensor? Either that or put the MAF on the turbo inlet right?  Is an aftermarket recirc/blowoff valve recommended? Do currently have family in Japan so could probably bring something back with maybe a cheeky lil SuperAutobacs run?
    • tsuokun
      Lets play a game - What is causing my oil consumption?

      By tsuokun · Posted

      Yep, so far most have said that it looks like corrosion on the wall from piston not moving. Which then has probably damaged the oil rings and caused those vertical marks. The longest the engine was still after the rebuild, was the winter of 2018 - 2019, plus the boat trip to Japan. When I shipped the car, it had normal gas in the tank but before that winter pause, it had E85 in tank.  In any case, even if either one of those was the cause, it happened close to 6 years ago and the car has been driven something like 30 000kms after the fact. Again, apart from the plugs and the dip stick, there is nothing in the way the car runs that would indicate what has been going on in the engine. I am going to consult a shop and ask their opinion, what would be the best approach. I do have some access to a garage I could use to diagnose further myself, but time is very restrictive. Might end up buying another engine that could be used while this one is being remedied. Without pulling the head, it will be impossible to find out if it needs another bore, but here's to hoping a hone would suffice.  Goddamnit, I would really have preferred this not happening.  
    • 25RBGT
      Got this r31 silhouette flood car to rebuild.

      By 25RBGT · Posted

      Boot is going to be replaced eventually. I just wire brushed what I could and rust converted. Then painted in rust kill primer. the spoiler also got repainted and plugs replaced on the ends. The under side of the bonnet is going to be black also, currently white. But red on the top side, same colour code as the silo to begin.
×
×
  • Create New...