Private Car Sale to Buyer Who Needs Finance with CBA

LLolzyhehz123 on 25/06/2023 - 10:35
Last edited 25/06/2023 - 11:07 by 1 other user

Hi there, happy Sunday!

Just had a prospective buyer come test drive a car I’m selling around the $20k mark. He’s happy with it and will move forward with the purchase. However he mentioned he’ll need to get his finance with CBA (has pre approval already apparently).

The car I’m selling has no finance. Of course I won’t be handing the keys over or transferring the nsw rego across until I see the funds in my account. Am I right in thinking CBA will release funds to the buyer once unconditionally approved and from there buyer will transfer the funds to me?

Also what sort of timeframe would I be looking for funds to reach my account? I’ve got multiple new enquirers since he inspected - the car is priced really competitively. Anything else I need to be aware of - I’d be pretty annoyed if I’m waiting any longer than a couple of days to complete the sale as I’m somewhat ‘holding’ the vehicle for this person.

Cheers

Automotive

Comments

  • hasher22 on 25/06/2023 - 10:52
    +9

    If the buyer applied for a car loan, these days the banks want your bsb and account numbers to transfer the money to you and not to the customer/lendee.

    If the buyer applied for a personal loan, they will get the money and it's up to them to transfer the money to you.

    Who knows about the timeframe, if they're pre-approved could be as little within a week or a few weeks depending how fast the customer and the bank finalises the loan.

    To be honest, you'll prob be waiting more than a couple of days. Customer has to send final documents to CBA, CBA has to check and finalise it, also if there's any documents errors more time to check, CBA to send the money to you or the customer…. All takes time.

    When I purchased my CX3 I had to get a 50% car loan, i put a 2k deposit down to secure it, finalised the loan and st George transferred the money to their account. Took 2 weeks to get that car.

    If you think he/she is serious about the car, tell them to put a non refundable deposit.

    • Kongzi on 25/06/2023 - 12:43
      -2

      Is car loan a good idea?

  • Euphemistic on 25/06/2023 - 10:59
    +4

    Ask the buyer about the timeframe, they’re in the best position to answer. Tell them you’ve had other interest and they need to complete the process promptly or you’ll sell to another.

  • Boioioioi on 25/06/2023 - 11:15
    +6

    Personally I would only hold a vehicle if they provide a deposit. And for an agreed upon length of time. Otherwise let them sort their stuff out, but if someone else comes along then so be it. Early bird gets the worm

    I've had nothing but headaches selling cars to people waiting on finance. Was selling a performance car though, their finance didnt get approved.

  • Brick Tamland on 25/06/2023 - 11:27
    +5

    I recently sold a car to a buyer who used finance.

    There are a few hoops to jump through with the finance company but it not overly onerous or lengthy. For example I had to provide rego papers to prove that I own the car and take heaps of photos to provide to the finance company. I am guessing they are doing their due diligence as part of the process. The finance company paid up pretty quick once the paper work was done.

    One of the biggest benefits for me being the seller was that the payment hassle was handled by the finance company, I didnt need to worry about cash or direct transfers clearing or any of that nonsense, it was all handled by the finance company.

    Make sure you take a deposit though! Dont hold it without any money down as without the deposit no one has any commitment to the deal.

    • Lolzyhehz123 on 25/06/2023 - 12:28
      +3

      Thanks, appreciate the insights.

      I’ve gone back to the prospective buyer to request a small deposit. He says he’s tight on funds and cannot pay it.

      He has however reassured me that he is a genuine buyer, and has since sent through a CBA form ‘private sales invoice’ for me to complete. It is asking for things like my address, vehicle details - vin, engine, rego, and my bank details and signature. Along with a copy of my rego papers.

      Not sure if this is standard practice? I plan to give CBA a call to verify the legitimacy of the form and request.

      Regardless, I’ve informed him that the car is still on the market and will be sold to whoever moves the quickest with funds in my account.

      • Brick Tamland on 25/06/2023 - 12:42
        +5

        The invoice is standard. Mine went through a broker for finance so the broker filled out those invoice forms for me. No harm in contacting the bank to find out more info on the process.

        I wouldn’t put too much effort in the sale if they can’t produce a deposit. It’s not a good sign that they can even get finance if they can’t get a deposit together. Deposit doesn’t need to be much. I took $200 which covered most of the RWC fee.

        • Lolzyhehz123 on 25/06/2023 - 12:52

          Thanks it’s a good point. This was the form sent to me - https://www.commbank.com.au/images/personal/apply-online/dow…

          Wanting to understand if im putting myself at risk completing it? It’s an extra few steps on my part and understand their finance could be rejected; is that it however?

          • Brick Tamland on 25/06/2023 - 13:15
            +2

            @Lolzyhehz123: I dont think you are putting yourself at risk. It's a fair bit of info but I dont think the buyer can really mis-use it in anyway. Honestly, it's safer going through a lender as they wont do anything dodgy in the transfer of funds. The biggest redflag is the lack of deposit. Without that deposit it just opens you up to a headache if another buyer comes along or if this buyer is a pain.

          • hasher22 on 25/06/2023 - 13:43
            +3

            @Lolzyhehz123: Good news and bad news.

            Bad news: They don't have a deposit which is a huge red flag and makes me wonder how people just buy things on finance

            Good news: From the looks of the form and CBA's process, CBA will directly deposit the money into your account. You don't have to worry about the buyer sending you the money personally and if the buyer has a problem, they can take it up with CBA.

      • rumblytangara on 25/06/2023 - 13:29
        +2

        I’ve gone back to the prospective buyer to request a small deposit. He says he’s tight on funds and cannot pay it.

        If he is so tight on funds that he can't cough up a thousand or so to hold a 20K car, he doesn't really sound like a "genuine buyer". Words are free, a deposit is genuine. Surely he's not borrowing the entire 20K from CBA to buy the car and has some of his own equity to put into the purchase.

        Just too much potential for drama for the kind of person who begs off a 'funds are tight so the problem is yours' excuse.

        Regardless, I’ve informed him that the car is still on the market and will be sold to whoever moves the quickest with funds in my account.

        Good!

        • Lolzyhehz123 on 25/06/2023 - 15:37

          I’ve asked for proof of the pre-approval/conditional approval - I know it means nothing as there’s no credit check involved - surprised to see he intends to borrow the full amount!

          I’ll have a crack and string it along. If it all clears before it’s sold to someone else, great, certainly won’t be keeping my hopes up high for this one.

          • rumblytangara on 25/06/2023 - 19:56
            +2

            @Lolzyhehz123: Well, if you view it as a bit of free potential entertainment, then go for it :)

            Would be interested to know if this really does go anywhere, it just sounds so iffy. I mean, he seriously can't spare anything for a deposit? Just a tank of petrol is going to be more than $100.

        • ColtNoir on 26/06/2023 - 13:42

          Quite frankly I never give deposits for anything, especially in this scam ridden environment we all live in.
          As a buyer they have no recourse to get the deposit back if you sell the car to someone else, crash it etc.

      • brendanm on 25/06/2023 - 18:49
        +3

        I’ve gone back to the prospective buyer to request a small deposit. He says he’s tight on funds and cannot pay it.

        Hard pass.

        • DoctorCalculon on 26/06/2023 - 00:10
          +1

          x100

          FFS! If they can't even pay a small non-refundable deposit of $200 now, how will they service that car loan?

          • Lolzyhehz123 on 26/06/2023 - 08:00
            +1

            @DoctorCalculon: Will come back to this thread to let you all know the outcome. Great input from all so far - it’s my first time selling a vehicle privately. I must say carsales instant offer is starting to look attractive (have sold there in the past for a profit! Won’t be this car unfortunately)

            • Lolzyhehz123 on 27/06/2023 - 18:40
              +2

              @Lolzyhehz123: Funds from CBA came through today. Pleasantly surprised I must say!

              • kerfuffle on 27/06/2023 - 18:52

                @Lolzyhehz123: Congratulations! What car did you sell?

                • Lolzyhehz123 on 27/06/2023 - 19:16
                  +1

                  @kerfuffle: Thank you, wife’s Mazda 2 - 2022 model with very low Ks :)

                  • kerfuffle on 27/06/2023 - 19:29

                    @Lolzyhehz123: Ha, sounds like my brother's car (also a Mazda 2 but 2021 and with 7K km on it last I asked earlier in the year)

  • kerfuffle on 25/06/2023 - 17:26
    +1

    Echoing the can't trust them if he can't come up with a deposit comments. When I was buying my car, I certainly didn't have all the funds for it on hand, but definitely was able to cover the deposit, and then some.

    Tell him to buy a cheaper car if he can't afford the deposit.

    • lachhelix on 25/06/2023 - 18:03
      +2

      Yeah this^ - I'm not anti car loan at all but if you can't scrounge $500 together for a deposit, you should be looking for cheaper cars than $20k!

    • ColtNoir on 09/07/2023 - 11:58
      -1

      And what guarantees does a buyer have that you won’t just run off with the deposit? There’s only risk of being scammed.

  • lachhelix on 25/06/2023 - 17:32

    I'd ask for a $500 deposit if you're in a rush and/or turning away other potential buyers
    Otherwise the rest of the process sounds fairly boiler plate

  • Wiadro on 25/06/2023 - 19:21

    no deposit, dont waste your time

  • ColtNoir on 26/06/2023 - 13:45
    +1

    Everyone here suggesting not giving a deposit is saying they’re not interested, has far too much trust in people.

    There are too many scams out there for me to just give someone a deposit.

    • Lolzyhehz123 on 28/06/2023 - 09:08
      +3

      Can also appreciate this perspective. It’s the world we live in unfortunately - honesty and transparency is a rare currency. The steps I took to validate this buyer to the best of my ability included:
      • Asking questions about the buyers finance approach
      • LinkedIn and socials search
      • Called CBA to validate their process and forms
      • Replied to the buyer with the completed form and copied in CBA’s personal lending general email

      Ultimately we both walk away happy so great outcome I think

      • rumblytangara on 28/06/2023 - 10:15

        Surprisingly fast outcome, great that it worked out.

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