Buying Car with Finance Owing Victoria

Tiredman on 22/08/2017 - 12:43

Hi guys,

We are looking at buying a car with finance owing on it, specifically Toyota Finance. After checking all ownership details, PPSR etc… The seller wants to do it this way which I am against,

1) Get payout figure from Toyota.
2) Go to the bank to pay into his loan with a Bank Cheque together
3) Once cheque is clears in 2-3 days, pay him the remaining amount and drive away with keys and transfer forms and receipts.

Sounds off to me. What's stopping him from driving away with the car after I pay off his loan? Any better ideas to get this to work? Any chance of the Finance company willing to issue a letter right away saying loan has been paid off? So we can get everything done and dusted in one day.

Thanks.

Automotive

Comments

  • QW3RTY on 22/08/2017 - 13:09
    +3

    Sounds dodgy as hell frankly.

    Any chance of the Finance company willing to issue a letter right away saying loan has been paid off?

    Probably best asking the finance company this. Have you contacted them about this matter yet? They'll probably need something more liquid than a cheque though.

    • Tiredman on 22/08/2017 - 13:13

      Thanks QW, Toyota finance mentioned they need the bank cheque to clear first which I understand I guess. I am just curious how everyone does it in such situations. I can't seem to find a way that satisfies both parties.

  • ausdday on 22/08/2017 - 13:13

    what's wrong with buying a bank cheque payable to him, show him the cheque, go to the nearest vehicle registration body, get the paperwork done. Hand him the cheque, take the key and drive off?

    • dasher86 on 22/08/2017 - 13:16
      +3

      If he doesn't use the cheque to pay off the loan an amount will still be outstanding on the vehicle you now own.

      • ausdday on 22/08/2017 - 13:19

        If the loan is on the vehicle, and not on the seller, then in theory, OP just need to pay the balance of the car to the seller, have the name changed, and can sort out the loan after the sales and purchase right?

        • Tiredman on 22/08/2017 - 13:28

          Hmm food for thought.

  • k-rokfm on 22/08/2017 - 13:19
    +1

    Generally if these things happen you get a payout figure from the finance comapany, pay that amount to the finance company and any remamining to the owner. Dont let them handle all of the money

    • Tiredman on 22/08/2017 - 13:26
      +1

      My main concern is when do we get delivery of the car from the seller?

      He only wants to give it over once the cheque clears and he gets confirmation loans is done. I'm not going to pay off his loan while he still holds the vehicle for 3 more days without transfer papers. Maybe i should look for another car. lol

      • k-rokfm on 22/08/2017 - 13:39
        +1

        probably easier/safer lol. Unless its a specialty car or very good condition/hard to find in that condition its probably best just to find another haha

      • JimB on 22/08/2017 - 15:31

        I agree with nsfx84.

        Go to bank directly and pay the outstanding loan amount into the loan account via bank cheque or Cash.

        You take ownership of the car at the same time.

        I've done it 3 times.

        Sometimes the loan is greater than the sale price of the car, in this case, make sure the seller pays down the loan first and ensure the pay out figure is the same as the purchase price.

        • swebster on 27/10/2018 - 06:51

          Did you sign the paperwork for the car first over to you and then go and pay the loan off?

  • Topdog on 22/08/2017 - 15:15
    +1

    You pay the money to Toyota finance not him! He can get the payout figure from the online service portal, its generated straight away and valid for 7 days it will have BPAY details or even BSB and account number. It can take Toyota up to 10 days to clear there security interest on the car. The rest im sorry i dont know how to work out for you. But thats how I did it when I bought a car still under finance. (Thankfully they where family) But that is how Toyota finance work… Can you pay the rest in cash? and drive away after you pay TFS via BPAY or anything?

  • geech on 22/08/2017 - 15:33

    I've done a similar thing as both a buyer and seller's perspective.

    Personally, when I was the buyer, I paid the finance company directly, and had the seller give me the (signed) rego transfer papers + a typed out letter explaining that he had sold the car to me. Once the the finance company relinquished their interest in the car, I paid the remainder to him and took the car.

    Not sure where any of this leaves you in the eyes of the law, but I felt comfortable that the seller was genuine (which he turned out to be).

  • Typical16-bitEnjoyer on 22/08/2017 - 16:38

    All finance company's procedures will vary slightly. Call Toyota Finance. They will guide you through the process.

    You won't be protected unless YOU obtain the payout figure from Toyota Finance directly and obtain PPSR release from them.

  • pegaxs on 22/08/2017 - 17:39
    +1

    My first piece of advice is: Avoid. If your gut instinct is telling you that something could not be right, it's easier to just say no thanks. It's a buyers market, plenty of other cars out there to look at.

    In the past I have said to sellers, they need to clear the loan off the vehicle, once the vehicle is clear of the loan, then I will buy it. They will then say they can't clear it until they have your money and leave in a catch 22.

    I would not leave a deposit or hand over any money until such time as you can take possession of the vehicle. The loan is their responsibility, not yours.

    If you are dead set of this car, then you need to secure your side of the sale. A contract of sale is a good start. Taking all their details and sighting their license and noting the details and matching that to the registration. Get them to sign over the transfer papers to you and take a photo of it and any other relevant paperwork. Deal with the loan issuer directly. Explain to them you are buying the car and making a payout. They will give you to details you need to make the payment. Once it has cleared, make sure it is not on the PPSR still and contact the seller to pay out the rest. If the seller goes to ground, then you can contact the police and you can report the scam and give them all the details… and then lawyer up…

    In other words, let this one go and find something similar that isnt encumbered…

    • bargainswarrior03 on 23/08/2017 - 14:03

      I like your approach but at end of the day even if OP involves lawyers it will make the entire situation more tricky than it should be

      Stay away from financed cars.

  • chumlee on 22/08/2017 - 18:27
    +2

    Why not get the payout figure and deduct that from the purchase price and pay that to the owner then take over the finance and either keep it going or pay it out?

  • apple2016 on 22/08/2017 - 21:05

    3) Once cheque is clears in 2-3 days, pay him the remaining amount and drive away with keys and transfer forms and receipts.

    First 2 point are fine. I would not wait until cheque clears. Bank Cheque is quit foolproof. I would rather pay him the balance same day preferably thru bank cheque as well and drive away the car with the transfer papers.

  • [Deactivated] on 23/08/2017 - 04:32

    So who offered the best advice. Ozbargain or whirlpool?

Login or Join to leave a comment
Login Join