buying car with money oweing on it

[ngc2359]

hi. does anyone know the procedure for buying a car that has money oweing on it? as far as i know the proper procedure is to pay the loan company then pay the rest to the seller. but what if after i pay the loan company the seller just walks away? there must be a way to prevent that.

[Samo]

get him to pay if off first

[Gio]

sounds sus as.

[Tu88y]

go with the seller to the bank and deposit the money into the loan company acc
thats your best bet.....

[m0nty ITR]

go with the seller to the bank and deposit the money into the loan company acc
thats your best bet.....

What I've done in the past is made a cheque out to the owners finance company and gone to the bank with the owner to transfer it into their financiers account. It may take a week or so to clear off REVS so make sure they pay the balance and ask for a copy of their payout letter to make sure funds are correct and there is nothing outstanding.

[Kiz_EG6]

get him to pay if off first

How is he going to pay it off 1st if the reason he is selling the car is to get out of debt??
I'm pretty sure you would find that is the reason for most ppl selling a car which is still on finance!!

[zco]

tubby hit the nail on the head.

[Glitta]

Ask for a current loan account obviously dated, go to finance company directly after you have the rego papers signed and in your possession with the owner pay out remainder of loan and pay the rest to the owner. Then finish the transfer like receipt ect make sure you state on it that you have paid X amount to finance company and X amount to owner.

To remove from REVS sometimes takes a phone call from the owner to their finance company to make sure it's removed usually then they do it within 24 hours.

Not really a big deal i've bought a car like that before and that's what we did.

[sassy_fit_vtit]

.. just dont buy the car... save u the heart ache

[ivtak]

Some guy tried to do that on a z4 for my friend's dad, not really a good idea to buy it

[sassy_fit_vtit]

well a friend of mine had his car repossessed by the company financing the car for the previous owner. Ugly court battle