Buying a Financed Car

[traumatized]

Hello all,

I'm in the martket for a second hand car and have my eyes on one at the moment through a private seller, only problem is that it is currently financed still (he hasn't paid the car off) and i've never bought a financed car before, just wondering what the process is if i buy this car?

What needs to be done ot ensure that all payments are paid off to the fiance company and so forth so i dont get any surprises later down the track. Is there any way of checking to see whether the car is financed by more than one company?

Any help would be great.

Thanks.

[IZY-10]

get the vin number engine number and rego number and get it checked out at vicroads or what ever state you live in. Should cost you no more than $10

[Bludger]

he already knows its under finance.
I sold my type R to a guy, my car was under finance, i told him the amount owing and he wrote a cheque direct to the finance company and the balance went to me

[misteR_bilzz]

http://www.revs.nsw.gov.au/about/revscars.htm



SEVEN EASY STEPS TO FOLLOW WHEN YOU BUY A CAR PRIVATELY

1.

Ask if any money is owing on the vehicle.
2.

Get the Rego no., engine no., and vehicle ID no. (VIN) or chassis no. from the vehicle.
3.

Confirm rego no., engine no. and VIN/Chassis numbers on the vehicle match those on the registration papers.
4.

Do a vehicle search on this website with these numbers.
5.

Phone REVS to purchase a REVS Search Certificate to guard against repossession.
6.

Complete transaction before midnight the next day.
7.

Arrange for current owner to repay the debt, if one exists. REVS can tell you how to do this.


http://www.revs.nsw.gov.au/buyguide/private.htm



If the vehicle is encumbered, you should not purchase it until you are satisfied with the arrangements made by the current owner to repay the debt.

[misteR_bilzz]

Like Bludger said, to make 100% sure that the finance will be paid.. pay it yourself.. and give the remaining money to the owner.

[T-onedc2]

As bludger said,
Have a cheque made out to the financial institution who own the car for the amount outstanding, that way the seller can't use the cheque in any other purpose.
Then pay the rest however you like, cash/cheque. If still unsure talk to your financial institution, they do it all the time.

[traumatized]

thanks for the information everyone. As Bludger has noted i already know the car is still under a financed agreement, I guess my concern is that the owner has a few loans taken out for the car, don't know whether this is even possible can someone advise?

eg. the owner has gone to two financial places and taken to loans to purchase the car.

[Bludger]

if you smell a rat, walk away
you have to be able to trust him at least a lil bit, like the guy that bought my car. he trusted me, or else i could have shafted him up the arse

[Joeyboy]

I know that sometimes u think u see the car of your dreams, but in reality it isnt. be careful with cars still being encumbered (financed). I personally WOULD NOT purchase any vehicle that has finance. That is what we used to recommend to people when I was working in Office of Fair Trading here in sunny QLD (REVs dept). With 2nd hands, I wouldnt purchase a vehicle without getting a clear title (certificate printed out stating no finance).

To answer your question, REVs around the state should be able to tell u if:

1. Encumbered (or financed)
2. Who the vehicle is encumbered to (financial institution) - however many

Suggest:
1. asking the seller to pay the balance first.
2. Ask for a copy of a letter from financial institution to say "FULLY PAID".
3. Make a deal to wait 14days for the records in REVs and financial inst to be updated.
4. Get a REVs certificate stating title is clear
5. Purchase the vehicle (of course after road worthy, mechanic check, etc).

The last thing u want is some1 knocking at your door ready to repossess your vehicle. With a REVs certificate, you're all clear BY LAW. However the REVs check must be done on the same day the papers have been signed. One day off and you will NOT be covered by law.

[traumatized]

thank you again everyone, i will keep it in mind if i go ahead with the purchase.