Buying a car with Finance on it

Hi all, basically hoping for some advice on best practice when buying a car with finance owing.

I haven't yet discussed this with the vendor as would rather be on the front foot with a solution. The last time I sold a car with finance the buyer just gave me a wad of cash and trusted me to payout the loan and unsure I want to do the same.



  • +1 vote

    Get an up to date payout figure and minus this from the purchase amount and you take over the lease/pay it out or get owner to pay it out first

  • +9 votes

    Don't buy with finance

  • +1 vote

    I sold a car with Finance on it. Bought by a 73-year-old man. He wasn't into the whole digital banking thing. So he stipulated that I accompany him to the bank and deposit the balance (payout) figure to the relevant lender's account together. I agreed, as it was no big deal for me, other than some time wasted. As i could've done this on my phone in 1 min flat.

    He was happy and I sold my car. In the end a win win I'd say.


      Haha old school. I had thought maybe I could just payout the finance owning figure from my phone in front of him (he would of course provide a current payout statement). Should do the job I reckon then just hand him the balance. Probably the best way to do it all at once anyway and suspect it'll happen on a weekend so banks will be closed (it's pretty rural too so they will definitely be closed..)


    I have sold a car like that. Luckily they didnt seem to think what could go wrong (they eft the money straight to the finance company).

  • +1 vote

    Call the finance company and pay them directly.

    Pay the seller what ever is remaining.

  • +1 vote

    Contact the finance company prior to the deal. The owner I Think has to get permission from them to sell as they own it. Confirm payout figure subtract from sellers price and see if that's a fair price for car remember that changeovers can cause hassles with rego transfer and things like revs reporting if you don't like it and want to do a quick flick

  • +1 vote

    With all the cars for sale, you want to tempt the fates with an encumbered one?

  • +1 vote

    I have done this, and I don't think it is as risky as people are saying.
    When you speak to the finance mob, make sure you understand what date the payment must be made by, so the seller doesn't get hit with an extra month payment to argue about.


      Likewise. Done this as well. The finance company can supply you or your bank (if you financing) a letter with all detail to receive their cut of the funds. It is true, the buyer needs to make it known to the finance co that they are intending to sell. If you have all ducks in a row there is no risk this should go south.

      Just a note - don’t be a schmuck and try barter further once you see the payout figure - that isn’t an indicator of the cars worth. Yes, I have had this happen now on two occasions. Once the price is locked in, that’s the price.


    How did you end up proceeding?

    I'm quite keen on a used car that I've seen. The price is good but not ridiculously cheap.

    Just did the $2 PPSR check and turns out it's got a security interest under Macquarie Leasing, and registered to a company. (Yes, OzB saves the day again)
    I called MQ, and they explained the process of arranging for the letter and payout.

    I'm not too alarmed as there must be a lot of cars running around that aren't fully paid off, although the seller hadn't disclosed their lease at any time during our discussions.

    The question is, how do you actually make sure the payout and possession of the keys happen at the same time?

    Is the only option to go into a bank branch together and I make the payment to Macquarie leasing there and then in front of him (+/- any difference) then walk away with the keys?

    I cannot imagine getting the letter sent to me, paying it off and then waiting for the owner to kindly give me my car…

  • Top