Buying a vehicle with finance owing

[dazzler]

Hey

We are looking at getting a second car and have found one. Owner is upfront about the vehicle being financed.

What are the steps to take to ensure the finance is paid out correctly?

cheers

[Mace]

Id be speaking to the finance company (in conjunction with the present keeper).  He most likely needs the $ to pay out the contract.

Get a current pay out statement.
Figure out what the balance is for the owner.

Pay out the contract, pay out the owner and arrange for transfers at the same time/venue (financiers offices?)

Get receipt copies from finance co and receipt from owner to complete transfer of rego.

If you were trading a vehicle under finance to a dealer, they would do something similar.  They would just write you out a cheque for the balance, less outstanding contract.  They would then pay out contract and transfer rego.

cheers, mace.

 

[D4D]

Get the payout figure and 2 bank cheques, one drawn to the owner (if he owes less than the car is worth) and one to the finance co. You'll have to trust the owner for the payout figure as the finance co. won't give it to you due to privacy reasons. Then make sure the finance co. gets their cheque.

[timbo43]

Brought my Lux from a bloke who had finance on it thru Toyota
Ended up being  fairly easy
But I thought a Bank cheque was as good as cash

Long story short My ANZ bank cheque to Toyota finance thru I think Westpac (don’t quote me)
Had to be cleared ( 3 days) before they sent me full ownership papers

[monahanajj]

Ask the owner to raise a pay out figure for the vehicle.  In the mean time get a REVs certificate to check its encumberance value and financier.  the two should match if not - ask the seller whats going on.
Pay ONLY the financier out direct and have a deed of release from the existing owner pending payment to the financier.
take all this (and applicable paperwork to the relevant transport office (you will need a pink slip roadworthy in NSW or a roadworthy in QLD.
Be sensible and you should be fine.  You can also use a broker to do this for you but really just use commen sense. 
Just understand that any encumberance on the vehicle is your responsibility once you change formal ownership and register the vehicle.

Once complete - enjoy the car....
Get the encumberance check here:-
http://www.revs.nsw.gov.au/
Hope this helps

[dazzler]

Thanks all.

[sablesoft]

Hi,
When I purchased my challenger, I got a copy of the loan payout doc and  after getting a REVs check, I then arranged a direct deposit from my bank account to the loan company bank account, and picked up the challenger 2 hours later, then did another REVs check a week later to confirm the loan was cleared.

That was back in 2004

Ray

[JCOJ]

I sold my Jeep that had finance owing on it.  I recevied a letter showing how much was owing and the purchaser made out two cheques - one to the finance company that we posted together, then gave me the other cheque.  He then got the keys but the vehicle stayed at my place.

Once confirmation was given from the finance company that it was clear he was happy, and once my cheque cleared I was happy, then he came and drove away and we were both happy.  We discussed this process/method at the beginning and both agreed upon it together.