I need some advice here.
I am buying a used car from a private seller. He purchased through fleet program in his company.
I did PPSR search and found this car is a security interest under that fleet lease company's name.
Is there anything special when I go to VicRoads to transfer the ownership? Does the car need to be "discharged" from fleet program first?
There is no question about the condition of the car.
Thank you!
Thank you. I did more research on "security interest".
so if there is a ppsr on the car that means it's still under the 'control' of someone else. It can't be transferred with that security on the car.
Defo get them to remove that before you buy it
Thank you
You might need to pay an amount direct to the lease company and any remainder to the seller.
I bought a car off a family member who sold it to me at residual after their lease. They arranged with the leasing company for me to pay the lease company directly and transfer the title.
This may suit your scenario
Obviously you will discover how much he has made off you but who cares if you are getting a good deal.
Thank you.
Hey I think I will follow this. Did you make the payment to fleet company? The seller said I will draw a cheque to fleet company's name, not his name. Is this sufficient or I really need to directly talk to the fleet company?
Thanks again.
In a perfect world If the seller agrees and once the seller advises the fleet company what is happening with payment. The fleet company will then invoice you with amount owing and banking details, call them up and let them know you will be paying and if not already they will ask you for your details for title transfer. Thats from my experience
Thank you. That's very helpful
If you purchase the car with another party having an interest, that means they own the car, you dont. The only safe way to purchase a car is to get a clearance in writing stating they no longer have an interest in the vehicle.
Just dont do it
Your being screwed…
if the situation, seller and vehicle are so dandy, there should not be a problem getting the vehicle cleared before you hand over the check…
The seller and the fleet company should not be relying on a private sale to pay out the lein before that fleet buyer went to his next purchase.
Your being slightly screwed at the convenience of the fleet company and seller…
Why would you assume he's being scammed?
Happens all the time.
Confirm the outstanding balance, arrange a date for the purchase, ask the finance company to quote you in writing the outstanding balance on the date, pay outstanding balance directly into the finance company bank account. A few days later, the finance company removes the lien.
I've purchased 3 cars this way.
Sometimes the sale price of the car is lower than outstanding loan (balloon) so the seller has to make up the shortfall.
+1 I've bought cars this way also. The seller is probably selling privately because they get more this way than trading in. Cover yourself and pay the fleet company directly as others have said.
Thank you!
Thanks!
i didnt say scammed, i said screwed… it's not wise buying a car with an existing lein, especially if you have to naively post asking "if it's all right".
but no-worries, people believe what they to hear, good luck on your "purchase"
I'd just make sure that the guy you're buying it off provides final paperwork from the fleet company saying that he has paid out the lease and that they no longer hold a security interest in the vehicle (waiting for the registration entity to get their records into order may involve a bit of waiting). Though if the seller is a bit reluctant to provide any evidence that the lease has been terminated…you should be able to see the road from where you're standing…head that direction.
Yes he is sending me the final quote from fleet company. I will ask him to tell fleet company situation and issue the final pay amount to me.
Thank you.
Usually the residual value of the vehicle provided by the fleet company is waaaaaay below what the market value is when the lease ends, so it makes sense for the owner to buy it from the fleet company and then sell it on unencumbered for a tidy profit at the end. For example, I have a Subaru XV on a 4 year lease with a residual of $13k…if you do a quick check around of 4 year old Subaru XV's…they're all selling for around $20k and up.
So if you can get it at the residual value…bonus!
No you just leave it there for the next 10 years.
Do you want someone with an interest over your car to be there when you paid fully for it.
I understand your urgency to buy. but dont throw out commonsense.
After you pay, you find that the fleet company says they arent going to remove the interest, what can you do?
Think about it…
I know what I would(n't) do
😀