Car. Help.

[Z_K]

G'Day people who know stuff,

Ended up using the advice of some on this board, and bought a house. It has crippled me. I have to sell my girlfriend thanks to you lot. Only stirring. That's all done and I am bored with being a home owner. Need a car now.

If a bloke needs to sell a car because he still owes 33k on it, should I be wary? Don't ask me why, but the missus is convinced she saw some show (probably ACA or TT ffs) that had a bunch of people that were screwed because they bought cars off people who had finance on it and hadn't paid it off.

Rubbish? Nothing to worry about?

 

[raskolnikov]

You can't sell a car for less than what you owe on the loan, unless you can make up the shortfall.

 

[AlwaysCarlton]

Don't ask me why, but the missus is convinced she saw some show (probably ACA or TT ffs) that had a bunch of people that were screwed because they bought cars off people who had finance on it and hadn't paid it off.

Rubbish? Nothing to worry about?

Possible, but they are most certainly short of a few brain cells for putting themselves in such a situation. Just keep your wits about and if something doesn't seem right with the paperwork etc.. ask someone who knows.

 

[- PC -]

If a bloke needs to sell a car because he still owes 33k on it, should I be wary? Don't ask me why, but the missus is convinced she saw some show (probably ACA or TT ffs) that had a bunch of people that were screwed because they bought cars off people who had finance on it and hadn't paid it off.

Drive.com

Auction houses that are licensed motor dealers are legally obliged to guarantee the title of a car. However, they are not required to financially compensate buyers who have their car repossessed, should it turn out to be stolen or have finance owing on it, says Gibbons.

Some more info

Some other things you should do include:


Check through the Department of Transport to find out who the registered owner is. This will matter if someone else owns the car. The registered owner may not necessarily be the actual owner of the vehicle. You will need to pay a fee of about $10 to get that information in writing.
Check whether a previous owner or finance company still holds ownership of the car through the Motor Vehicle Security Registrar. This is essential if you are buying privately. Find out if anyone owes money on the car by phoning the Register of Encumbered Vehicles (REVS). They can tell you over the phone if it’s clear but to be legally protected you need to pay about $7.40 and get REVS to send you what is called ‘a certificate of clear title’. The contact details for REVS are at the end of this chapter under the heading Who can help?.

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Basically be very carefull

 

[Z_K]

You are all sterling individuals.

The bloke I am looking to buy off simply bit off more than he could chew, from what I can gather.

Thanks people who know stuff.

 

[Falchoon]

I bought a car years ago in a similar situation.

I wrote out 2 cheques, one for him and one for his finance company, no dramas since.

In terms of risk, it would seem that because it's out in the open there is less chance of being caught out.

 

[Z_K]

I bought a car years ago in a similar situation.

I wrote out 2 cheques, one for him and one for his finance company, no dramas since.

In terms of risk, it would seem that because it's out in the open there is less chance of being caught out.

Righto.

Problem is, he is being a stubborn bugger on the price as I am pretty sure he just wants to clear his debt with the money so trying to pull him below a certain price is proving quite difficult. Gave me the "just had twins, missus is gonna kill me" speech. Bastard. Truth be told, price is already excellent.

 

[funkyfreo]

Problem is, he is being a stubborn bugger on the price as .... Bastard. Truth be told, price is already excellent.

So, essentially, it is you who is being a stubborn bugger on the price

 

[Z_K]

So, essentially, it is you who is being a stubborn bugger on the price

Ahm, err.....yep!!!

Say the car price is 35k with 12 months rego. How much am I looking at to have it changed over, on the road all things done?

 

[AlwaysCarlton]

Ahm, err.....yep!!!

Say the car price is 35k with 12 months rego. How much am I looking at to have it changed over, on the road all things done?

You'll need a roadworthy certificate which has been issued within 30 days (I think), if seller hasn't provided then that will cost. Depends on mechanic I guess, best if it's a mate that way he won't make you spend $$ on useless things.

Transfer fee with vicroads would be about $30.

Then there is motor vehicle duty, for 35k may well be nearly $1500.

That should be all, this is just based on my experience flogging of my old man's car.

 

[Deej]

firstly i would recommend using the carsales research service, just go to carsales.com.au and across the top hover your arrow over the research tab, then go down and click car valuations. Input all relevent info about the car you are looking to purchase, and it will spit out a price range of what it's worth. I would say look at the lower end and offer that for the car, if he doesn't take it then move a little bit up but go no further than the half way price range.

What sort of car you getting? I too purchased house then car recently, but i gotta wait 3 months for my beast to arrive. In the meantime i'm getting around in an 85 subaru, bloody awesome mate.

 

[rick James]

You can't sell a car for less than what you owe on the loan, unless you can make up the shortfall.

Incorrect, the seller merely neeeds to apply for a letter of authorisation fro the lender, often the lender will allow the sale evne if the proceeds dont make up the entire debt owed. As long as the seller is confident of recouping the remaining funds it will be ok.

This is especially true if the sale is going to leave no more than 10k remaining on the loan as under credit law a lender can not repossess securit (i.e. a car or house) if the debt is any less than 10k.

Basically, buying off someone who owes money is no different than buying off anyone else.

 

[rick James]

the only thing to keep in mind is to make sure you get a REVS check before paying, basically its a check you can get done that will tell you if theres any security being held on the car. If theres security, dont fret, just ask the seller to produce their letter from their lender stating its ok for them to sell, then request a copy.

If they cant provide it, make them. If they still wont, spit in their eye and tell them if they waste your time again you will kidnap their children.

 

[Z_K]

You are a man of many talents, Rick.

As far as I can tell, he is setting the sale price at exactly what he owes to simply clear it.

You wouldn't have any problem doing this yourself Rick?

 

[raskolnikov]

Incorrect, the seller merely neeeds to apply for a letter of authorisation fro the lender, often the lender will allow the sale evne if the proceeds dont make up the entire debt owed. As long as the seller is confident of recouping the remaining funds it will be ok.

This is especially true if the sale is going to leave no more than 10k remaining on the loan as under credit law a lender can not repossess securit (i.e. a car or house) if the debt is any less than 10k.

Basically, buying off someone who owes money is no different than buying off anyone else.

They must have changed the law then because five years ago I went to sell a car which had a loan on it. I was told that I couldn't sell it unless I made up the difference and there would have been only about $1,000 remaining on the loan after I had sold it.