Negotiating Deal on a Used Audi A3 2015 TDI/ Finance Owing

• 

  nocure on 02/06/2018 - 00:18

  +1

  1.How do you usually negotiate?

  You don't

  2.What do I need to do…

  Walk away

  • 

    pegaxs on 02/06/2018 - 09:27

    +1

    Came here to say exactly this. Owner overseas and finance owing, red flags flying over this one.

    Walk away. This car has bad news written all over it.

• 

  chumlee on 02/06/2018 - 06:53

  Get an up to date payout figure and minus this from the purchase amount and you pay out the finance or get the owner to pay out the finance with evidence provided and then pay the asking price

• 

  alz on 02/06/2018 - 07:00

  +1

  Dude, Why are you asking for a headache?
  Forget about it and find another car.

  • 

    SBOB on 02/06/2018 - 07:51

    +1
    Priced based on redbook
    existing finance
    seller overseas

    seems like a bit too much for someone with minimal negotiation skills

• 

  Zoop on 02/06/2018 - 07:07

  +3

  When I bought a car with encumbrance, what I did was

  1) Get details of the encumbrance.
  2) Get payout figure directly from the finance company with a view to pay them out directly (not through the seller)
  3) Get 1 Bank cheque made to finance company. A/C payee only. Encumbrance amount.
  4) Get 1 Bank cheque made to seller. A/C payee only. Total negotiated price minus the Encumbrance amount.
  5) Meet seller at a major bank of his choice where he has an account (Westpac, Commbank, etc).
  6) Finalize transaction in a safe environment where the bank cheques can be validated by the bank, and deposited right away. This protects both parties.

  I'd like to hear if there was a better way of doing it.
  Also, if any red flags occur from steps 1 to 6, I'd walk away.
  i.e. 'I'll deal with the finance, give me the full sum' (Seller cashes in the money, hands over the car and finance company can repossess the car you just purchased)
  'I don't have a bank account with any of the big banks, give me cash.' (Obvious)
  'Lets meet at night because I'm too busy to take time off work.' (Banks will be closed, cameras may not capture transaction etc)

  • 

    jnathanc on 02/06/2018 - 21:40

    Sorry, how does the A/C payee it work? Is it something I have to write on the bank cheque?

    • 

      Zoop on 04/06/2018 - 07:49

      Yes, you can write it yourself or the bank can write it for you.
      It simply means that the cheque can only be cashed into the account of the specified recipient.

• 

  Melb69 on 02/06/2018 - 09:25

  Have you checked the service book. Is it complete and stamped. Also at those Km its would be due for a timing belt change. Has the owner done that and have proof of works done. If it hasn't been done the water pump should also be done at same time. theres at least 1200-1500 in cost on you for that if not done.
  By the way if the car is out of warranty Audis are known to be expensive to miantain. Service costs and repairs are expensive.

  For the price you are looking at it may be worth looking at a New Hyundai i30. 5 year warranty. Great car for price. At the very least test drive it.

  • 

    jnathanc on 02/06/2018 - 21:43

    The only thing making me lean more towards this is that it is better in performance than the CT200h, and it still has 2 year unlimited km service warranty.

• 

  nayanmodi on 02/06/2018 - 10:39

  +1

  We did exactly the same thing as Zoop mentioned above. The most important thing is to do this at the bank and make sure the payment (encumbrance amount) is directly made to the finance company. I would also do a PPSR search (https://www.ppsr.gov.au/) few weeks after the transaction to make sure the vehicle is clear of any financing. It cost only few bucks. I would pull out a report now if you're really keen on the vehicle to check VIN and make/model of the car checks out. As for negotiation, it depends on how keen the seller is. Assuming the seller is trustworthy and the fact that they are overseas for long-term work, to me they would be keen to sell asap. I would first check on carsales.com.au to see what similar model/kms usage is selling for. Hopefully, this will be consistent with Redbook. Then outright ask the seller what is the best they can do. I would also take into account and try to figure out any immediate upcoming cost like rego, servicing etc that you can include as a part of your negotiation. From memory, Audi's 60K service involves transmission oil change which is a bit expensive depending on where you go for servicing the vehicle. Last but not the least make sure the car has been maintained and serviced regularly as per the manufacturer guidelines. Hope this helps.

• 

  Randxyz123 on 02/06/2018 - 11:47

  This seller has the car parked at their parents place whilst they're currently overseas for long term work.

  Car also has a finance encumbrance on it.

  Run away. Or offer the seller $25,000. It could cost you $4000 to get it detailed / fixed

  Bank cheque with balance of finance to finance company

  balance if any to owner

  • 

    Iamnotcheap on 02/06/2018 - 13:02

    Agreed fixing of certain scratches can be very costly. Depends on how deep they go as a cut and polish may not work, and then even with that method you effectively reducing the paint quality.

    Get a discount on the scratches for a couple K depends if it’s isloted to certain body parts - if all over, could be a potential full respray - but assume the car would have to be pretty bad and not be asking this much if it was.

  • 

    jnathanc on 02/06/2018 - 15:34

    Great, thanks for the estimate on the repairs. I think the best option is to do as mentioned. Pay the finance company then the seller. Fyi, seller said they have about 20k finance owing.

    • 

      HighAndDry on 05/06/2018 - 11:20

      Verify this yourself directly with the bank (go into a branch and ask if necessary). Also do a PPSR search to confirm there isn't anything else owing.

      Also - if the guy's overseas, get him to send ID so you know you're actually dealing with the owner of the car.

  • 

    jnathanc on 02/06/2018 - 15:36

    This is probably the best way.

    I spoke to seller over the phone for quite a while and they were transparent.

• 

  Iamnotcheap on 02/06/2018 - 12:59

  Sold my car in exactly this manner. Doesn’t mean red flags. There are people genuinely in this situation.

  Left my car at my parents while we lived in the US as it didn’t sell in timeZ Depending on how you buying it, all what has been said above is fine. Just do the background checks to ensure the story checks out.

  Anyway, the buying party was taking a loan themselves - their financing co knew the car already had a secured finance loan over it. They, through EFT paid the amount owing directly to my finance co and the remainder came directly to me. Simples.

  • 

    jnathanc on 02/06/2018 - 15:34

    Tbh they seem genuine. I've just never negotiated a car purchase. And just needed advice on the finance side.

  • 

    jnathanc on 02/06/2018 - 15:36

    So you would pretty much also say to
    1. Bank cheque directly to financier owed
    2. Pay the rest to seller of which they want a direct bank transfer in a branch.

    I think this is the most clearest option

    • 

      Iamnotcheap on 02/06/2018 - 20:46

      +1

      Yes, very much so. Make sure finance co get their money first and confirm the vehicle is now free from encumbrance. Commonly they will have a payout figure that will last for 7 days.

      • 

        jnathanc on 02/06/2018 - 21:37

        Straight forward. Is the best way to just ask the seller to supply me a copy of a document showing the payout figure from the finance co?
        I'll suss out which company he used for finance, if it's an accessible branch then I'll walk in with them and pay it that way so it's clear. Then I'll pay whatever extra is left to them.