I'm surprised that there is such a loop hole in the system. Sounds like anyone can buy a car, not finance it, sell it and then fly out of this country without having to pay the debt.
Pays to be paranoid these days - I'll always get a 2nd hand car REVS checked and have a "pre-purchase" inspection done.
At the very least you'll know what you're paying for, nothing worse than an unexpected headache
I hope your friend gets this all sorted out painlessly, and it's a lesson for next time.
I have a question related to this topic, rather than start a new thread. I have agreed to buy a MkV GTI privately for x amount. The vehicle is under a novated lease and the current owner wants to pay out the lease and get a new lease with a new car. The owner is currently talking to the leasing company to cover everything involved. I am awaiting the VIN number so I can do REVs check which I think will come back saying the vehicle is encumbered. The current owner says they will pay out the lease but I believe they are thinking this will happen by me giving them my bank cheque for the amount, they pay out the lease, I take the car. Is this the usual process or should I be expecting the owner to pay it out, then own the car, then I buy it from them. I just dont see how the owner currently has 25+k laying around for this to happen.
Advice?
Tom,
Get two cheques made out. 1 to the leasing company for the amount owed, and 1 to the owner for the remaining. Can't loose that way. You can ring the Leasing company to get the details.
You can also just do it via internet banking if you don't mind sitting down with the owner and doing the tranfers infront of him. (what I did once)
to replicate the effect you'd have to push the pedal extremely fast to at least 50% throttle, and then fast, but not quite as fast as before to say 70-75%, and then a bit slower to say 85% - all in the time it takes me to push my pedal down 20-25% max
I did this when I sold my Mazda 6MPS which had finance owing, the buyer and I met at the bank and as mine was financed through Esanda we deposited the amount directly into my Esanda account at the ANZ, I then sent him confirmation a couple of days later showing a zero balance on my Essanda account. He was happy, I was happy and all relatively painlessOriginally Posted by tom89
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Thanks mate. That makes sense, that way the buyer see's that the lease is payed out. The only problem I see is that I've ordered a bank cheque that is payable directly to the seller. Bit of a mistake on my part I guess. Nothing seems dodgy with the seller but you just never know, as a post above says, it pays to be paranoid.
Sorry Tom, I didnt notice your post! Thats an idea that suits me perfectly. I think I'll pursue that.
My S3 had an amount owing on it which was less than the purchase price.
Exact process I followed.
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So the story ends:
Just got word it's all sorted. My friend had her husband visit the address she bought it from and the neighbour pointed her to the new address the owner now lives at. He was very apologetic, said he'd make amends and pay it all off. Which he has now done.
Far be it for me to suggest that her husband, who is a very solid Tongan, influenced things in her favour....(funnily enough, he's a very gentle chap who'd never raise his voice let alone fist but hey, the seller didn't know that did he).
Anyone looking for a Subaru Forester XT, good nick, no finance....., in WA let me know. Quick sale's a good sale. I think she wants maybe $15k for it.
UNDER NO CIRCUMSTANCES DO YOU EVER EVER GIVE PAYMENT TO THE LEASING/FINANCE COMPANY.
The CORRECT procedure for your benefit is as follows:
1. GET an official letter from said finance/leasing company on PAY OUT FIGURE. (lets say it is 50k for this exercise)
2. YOU the potential buyer makes a BANK cheque tothe finance company (ask them for details to make the bank cheque out to. Their details goes on the bank cheque)
3. The seller will need to either make a bank cheque Or direct deposit to the finance company WITH PROOF of payment (bank receipt) of the remaining balance.
Eg. If the balance owing is 50k and YOU agree to buy it for 30k... it works as follows
1. You make BANK cheque to finance/lease company for 30k
2. Seller makes BANK cheque to finance/lease company for 20k
If there is a balance owing to the seller... eg.
Balance remaining is 50k to finance company and you agree to buy for 55k.
1. You may bank cheque of 50k to finance/leasing company
2. you may bank cheque or direct deposit to seller for 5k.
ENSURE all cheques are BANK cheques. as they are the only guaranteed funds. Do not under any circumstances accept personal cheques or business cheques.
If you have do, DO NOT pay YOUR funds until those personal/business cheques have cleared with the finance company.
Follow these rules and you will be protected.
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