buying a car with finance owing...

[VR6ING]

so im able to lease a car through my business but after doing the maths im better off buying one outright.

a VW that im interested in buying is very well priced but the seller still owes a large portion of it on finance.

whats the go with that? how does this work if im to buy a car that has finance owing on it still? by the sounds of it he needs the money from me to pay out the car then its put in to my name?

it seems sus to me..

any advice would be great.

[Stan]

not worth the pain mate - if he doesnt pay it off - they take it back.

There will always be another, keep looking

[JimmyH]

I went through this when buying my jetta. The owner still owed 2 grand more than what she ended up selling it to me for. Basically what we did was get a letter from the finance company stating what was owed, then when I bought the car we went to the bank, and ended up paying my money straight to the finance company, and at the same time the previous owner paid the rest out that was owing. It takes a few days for the finance to clear from the cars information from vicroads, so I guess it is a bit of a risk to take, but I had enough details of the owner to trust them.

[VR6ING]

cool, thats what i was thinking.

im going to give this car a miss.. shame because its 3 grand under market value.

[OEM G60]

Yeah, it's not uncommon to buy a car under these circumstances. I sold a car that i still owed money on, the buyer done a REVS check so he was aware that i owed money on it. He could of trusted that i pay the bank off if he'd written the cheque out to me, but the safest way is to get the seller to find out the exact amount owed on the car, then write a cheque for that amount to the finance company, and another to the seller (assuming it's being sold for more than is owed on it). Actually, i done the same thing when i bought the same car. Nothing dodgy about it, it just makes sure you're not liable to be paying off someone else's loan!

[VR6ING]

yeah so the seller owes a considerable amount more than the car will be sold for... we are talking 2-3K.

acquiring the car this way does make me feel a little nervous as i'm interstate also. he sounds genuine and he was straight up with me about the cars condition. so i have no dramas there i just don't want to get left holding an empty bag.

[OEM G60]

Yeah i'm with you there... unless he's willing to pay off that extra 2 -3K BEFORE you bought it, i wouldn't be buying it either.

[Mk3 AAA]

I'm not a professional, if you think it's too much of a risk don't do it. Here's what I'd try: A good contract saying what is going to happen (include that the car will be unencumbered before changing ownership I don't think ownership of a car can lawfully be transferred otherwise, and if this is not done before x days then the full amount including deposit be refunded), after they organise a payout figure with their finance company (apparently the figure lasts a few days only) take them with you to your bank, have the bank write one cheque to the finance company and one to the seller. A good contract at the start and some signed receipts at the end.

My take anyway, a few grand is not a lot compared to what some must be owing while advertising. Maybe a few hours extra and a bit of lining up at the bank, but could well be worth it to save a bit of money and to buy a car off someone who actually wants to sell it (not someone emotionally attached and dreaming about value).

[kamold]

I sold my car which was under finance. The buyer bought it with finance.

I had to go see the manager of the local anz as he was financing through esanda. The manager sighted the car and signed a form saying the car existed with that rego and vin.

The buyer then had his finance company pay directly to my leasing company the amount outstanding. They then gave me a letter saying no finance owed. The buyer paid the rest if the purchase price into my bank account. There was other paperwork including copies of drivers license and sigs etc

He caught a plane up from Melbourne, I picked him up at he airport. We signed over the paperwork and he drove off into the night.

It's not as easy as buying from a dealer but it's worth a few hours of paperwork for not paying dealer markup IMHO...

[gringo_54_oval]

years ago i had a tilt tray and sold it owing some money and the same as most people are saying,

went to the bank with the payout figure did the payment into the finance account called them with the proof of deposite they released the documents to the truck,and me happy not to be working 24hrs.
never doing that **** again

Dont be scared about buying something with debt as long as the original owner seems legit and the deal is good i say go for it.

just my 2c
all the best