Buying a Car Thats Under Finance in NSW in WA

LVeryCheap on 27/04/2017 - 00:42

Hi Guys,

Need some advice on a car I'm looking at buying. I have never bought a car that's not owned by the seller before and i assume it happens here and their?

The Seller has moved from NSW to WA last week and listed his car and i have been looking for said car for some time and it met all my expectations, also comes with 5/y warranty.

My issues is the seller bought the car in December 2016 and paid half up front and financed the remainder. The remainder in finance is $11K and he wants 15K for the car in total.

He urgently needs the cash by the 1st of May and is looking for a deposit. Finance is through Pepper Finance never heard of it over here?

The car needs the windscreen fixed which hes doing under insurance. The issue i have in WA you must own the car 12 months before transferring to WA rego to avoid pits. I am not paying anything until the car has passed the pits to ensure all in order even tho it has the warranty i made this clear.

Since this is the case he has to unregister in NSW and sell to me in WA as unregistered for me to register or he has to take to pits do it himself then sell me the car. What is the best method?

Now is it possible to sell me the car and for me to register the car in my name even tho it has finance or must i pay that out first?

He sounds genuine but i want to protect myself, hes only getting 4k back for the car after i pay the finance but i don't want to be doing any dodge deals.

He has offered to sign a form off ownership to me and give me the car on the day i deposit him a deposit of the difference owed to finance (4K)

What would you do and am i covered?

Automotive

Comments

  • captobvious on 27/04/2017 - 00:57

    cant find the same car locally with WA registration? What is the car?

    https://www.pepper.com.au/lending/car-loans - looks legit

    • VeryCheap on 27/04/2017 - 00:59

      I can find it locally not in the model i want. I would say but their isn't many of them for sale to protect the sellers name

      • spackbace on 27/04/2017 - 01:44

        $15k for a 5 month old car…? Hard to believe that's a 'rare' car as such, especially as it sounds like a Mitsubishi/Hyundai/Suzuki

        • VeryCheap on 27/04/2017 - 03:23

          Car is a 2010 hes owned it 5 months

  • spackbace on 27/04/2017 - 01:03

    • get the owner to get the registration changed to the applicable state. A lot easier for them to do than you.

    • REVS check asap! Obviously their won't be clear title but it's worth checking it hasn't been written off.

    Personally I wouldn't buy a car without a clear title, just not worth the headache.

    Since this is the case he has to unregister in NSW and sell to me in WA as unregistered for me to register or he has to take to pits do it himself then sell me the car. What is the best method?

    Afaik he doesn't have to pit it, pretty simple to change it over, but you would have to pit it if it still has Mexican plates

    • VeryCheap on 27/04/2017 - 11:06

      You do have to pit it if the seller hasn't owned the car longer than 12 months in another state.

      • spackbace on 27/04/2017 - 12:34

        Ok haven't checked for a while

        Kinda more reason why it might be difficult on both sides. 7yo car going over the pits will have issues identified, but seller wants quick sale…

        • VeryCheap on 27/04/2017 - 12:35

          True the only reason i'm still considering it is he spent $2.5K on the 5year warranty which has 5K per claim limit

        • spackbace on 27/04/2017 - 12:36

          @VeryCheap:

          Yep but is it transferable?

        • VeryCheap on 27/04/2017 - 12:37

          @Spackbace:

          Yep i confirmed with the Dealer it's a national warranty.

  • [Deactivated] on 27/04/2017 - 01:05
    +4

    I would never buy a car under finance, why can't he take out unsecured loan for the amount remaining and provide you a letter that it's paid off.

    • VeryCheap on 27/04/2017 - 01:36

      My old man mentioned i should do this but hes just moved here for a new job so doubt bank would hand him money

      • [Deactivated] on 27/04/2017 - 06:56
        +3

        You should probably avoid purchase.

  • aggregate on 27/04/2017 - 02:32
    +1

    There are a lot of steps that can stuff up. Why not avoid the seller?

    As for the finance, you could make a cheque worth $11k to the lender and $4k to the seller. Settle at the lender's office.

    • VeryCheap on 27/04/2017 - 03:22

      Lender is in NSW and im in WA….

      • aggregate on 27/04/2017 - 05:17
        +1

        Another reason for buying a car from someone else… i hope you are saving serious money for this 15k car

  • enzioFirenze on 27/04/2017 - 06:02

    if I'm buying a car with finance, I would go to the finance company and settle the whole transaction there, that way, it's all assured. Otherwise, people can be dodgy and I don't like that headache.

  • edwardsajl on 27/04/2017 - 06:10
    +1

    Its easy. Get the seller to get a payout figure for the amount owing on the car. Then you pay this amount to the finance company. After this you then pay the seller the remainder. Very simple. All these clowns saying they would never buy a car under finance are bad. Enjoy

    • [Deactivated] on 27/04/2017 - 06:57

      It's not really under finance once you pay the finance company.
      But if the seller pushes to pay him directly that's when you avoid it

  • ChickenTalon on 27/04/2017 - 09:19
    +3
    • 15k car
    • Registered in another state
    • Has finance owing
    • Urgent seller, yet they're only netting 4k from the deal…. warning bells are starting to sound, loudly.

    Seriously, just leave it. Find one locally or a different model. Just tell him if he wants to sell it he'll need to clear the finance (which you'll need to verify independently) and change the rego. Too many things to go wrong.

    No doubt it appears to be a bargain, but factor in the risks and I doubt it's going to come out as that much of a bargain.

  • Gronk on 27/04/2017 - 12:37

    Just nope.

  • VeryCheap on 01/05/2017 - 18:02

    Thanks for all the info and advice.

    I ended up not going for it, was an 2009 Audi A4 B8 2.0 TDI, instead i went for a 2008 Audi A6 B7 3.0 TDI and am in love with it.

    Didn't want the hassle of finance etc he couldn't afford to pay so now im happy with my choice :) ! TY ALL

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