buying a car with finance on it.

[dc2dc2dc2]

thoughts and opinions please.

[MikeyG]

did something happen to your calais ???

[dc2dc2dc2]

perhaps...

it is time to move on from the old calais need something more up to date.

thoughts please.

[whtteg]

? the car you want to buy has finance already on it?

[dc2dc2dc2]

perhaps.

stop asking questions with questions.

i just want opinions/answers/thoughts.

this is no help.

[whtteg]

sorry i was just confused by the first post.

As long as you make an agreement with the person who has the finance, that you will pay out the finance on their behalf (call finance company for payout figure) as part of the purchase price and they receive the balance you shouldnt have a problem.

[M@lew]

Make sure the person you're buying it from can pay for the finance unless you're happy to pay for it yourself. I think the worst thing to happen is if you assume they can pay it and they can't (bankrupt or just dodgy etc) then if you can't fork out the cash the finance company will take the car and you'll be left with no car and no money.

[geeang]

When buying a car with finance, ALWAYS make sure that YOU pay the remainder of the finance, and settle the balance minus the finance payment with the seller.

Eg. Say you wanted a $20k car with $5k finance, you talk to the seller and agree that you pay him $20k and he'll settle the $5k finance for you.
You get your car, and then later on find out the seller hasn't paid the finance and you are left to pay $25k for a $20k car.

In this case you'd give the seller $15k, and pay the $5k finance yourself for peace of mind.

[10KRPM]

yep as geeang said.

[MMike]

thoughts and opinions please.

There are two ways purchasing a car that has finance on it can go;

You have scenario A: The person is selling the car for $10,000 and has $3,000 remaining on finance.

In this scenario, what you do is request a payment figure from the seller (who will obtain it from the finance company). This will prove to you there is only $3000 remaining. At which stage, you make two cheques; one goes to the seller for $7,000 and the other one to the finance company for $3,000.

It usually takes the finance company 5-7 working days for them to close the account before you can do the transfer of ownership papers at your RTA.

And there's scenario B: The person is selling the car for $10,000 and has a debt of $14,000 to the finance company.

In this scenario, the seller must pay their finance company $4,000 so that the remaining balance left on the finance is $10,000. Once it is comfirmed (via a print-out from the finance company, or you can ask the seller to call the finance company in-front of you) that the remaining finance on the vehicle is $10,000 you then make a cheque out to the finance company for $10,000.

Again there is a grace period you must wait while the finance company closes the account, after that you can register the vehicle in your own name.

Also, just to clarify; the finance company will give you a reference number which you include on the cheque made out to the finance company - this way they know where your money is going.

Overall I am a firm believer in purchasing a car that has finance on it as long as you follow either of the two methods mentioned above, in some cases you can pick yourself up a good deal :)

Hope this has been helpful :wave: Goodluck!

[_bORdO_]

my opinion with the whole finance situation - dont do it. to me it just seems like a massive headache that could have been avoided.
chasing up this...
organising that...
stressing over crap...
(just my opinion)

[cymax]

The safest way I reckon is to settle everything at the finance company together with the seller.

ie: Agreed price is $25000 and finance remaining $3000.
Go to the finance company with the seller and settle the $3000 with him (remember to get a receipt that says finance had been cleared) and subsequently pass the remaining $22000 to him. This is to make sure that the seller is not lying to you about how much he is owing to the finance company.

Buying a car that is currently on finance can be safe provided that you cover your backside properly.

[Twincam16]

Have it all signed for with witnesses to back it up.