Advice needed - Buying a 2nd car that has finance owing...

[The X]

So, I'm looking at buying a car.
The current owner has finance on it, so I guess it will come up on the what was REVS, now Personal Property Security (PPS) Register as having finance owed on it.

So question, if I decide to go through with the transaction, how is this all going to work?
Problem is I need to borrow around 10k to meet the temporary shortfall before I sell my existing car. Of course my lender will want security over the new car. This causes problems if the "New" car already has a security over it.
What happens? Do I hand over the bank cheque to the seller, wait for the funds to clear in his account.
Then he needs to discharge the loan on his car before we can sign the papers.
I'm just a bit weary handing over a bank cheque being in limbo until he sorts his end out. The added complexity is that the car seller is interstate.

anyone been through a similar experience before? advice, please.

[SIX]

I'd be leaving the car and buying one in this state , it sound too much hassle to me for a run about

[Metalstrix]

Pete. Just look for another one. I wouldnt buy a second hand car with a finance on it. Tell him / her to pay up. Can you imagine the consequences if all goes wrong? What car u looking at btw?

[Meaty]

Isnt a car being used as security, used to pay off the loan should they default ?


What car ?

What car?

What car ?

What car?

[Meaty]

im pretty sure the bank owns the car .... hard to sell something you dont own

[belle_tb_ES]

I wouldn't be selling a car with finance on it...

[belle_tb_ES]

Yep. Id prefer to not sell it. 7 years for me

[belle_tb_ES]

The owner would have to pay it off unless he sold it to a car yard. I thought that was how it went or else the finance company can come and take it off you if the original owner stops paying for it

[blinklight]

Legally the car belongs to the finance company

Belle is correct, in that the current owner would have to payout the loan.

If they failed to do this and then defaulted, the finance company has the right to recover the vehicle.

Even if you can show that you have handed over funds for the purchase of the car, legally you have NO comeback whatsoever

[The X]

I had done some googling before I posted and mostly getting old results and dead links to the VicRoads website.

The car is in VIC.

From the general gist, I need to find out who the finance company is with.
Pay out the loan and give the remainder of the price to the seller. (This is what kinda has me a bit concerned) - I don't want to be paying someone else's car off and getting stiffed. We're talking around the $50,000 mark. No small bikkies!

The old links talked about getting a Victoria's Vehicle Security Register certificate within 24hrs of finalising the transaction. However it sounds like this has gone the way of NSW's REV's check and replace with a national federal govt run scheme called the Personal Property Securities Register (PPSR).

Hence wondering if anyone has had first hand experience with these things to put my mind at ease.

I guess more googling for me when i get a chance.....

[SIX]

I had done some googling before I posted and mostly getting old results and dead links to the VicRoads website. The car is in VIC. From the general gist, I need to find out who the finance company is with. Pay out the loan and give the remainder of the price to the seller. (This is what kinda has me a bit concerned) - I dont want to be paying someone elses car off and getting stiffed. Were talking around the $50,000 mark. No small bikkies! The old links talked about getting a Victorias Vehicle Security Register certificate within 24hrs of finalising the transaction. However it sounds like this has gone the way of NSWs REVs check and replace with a national federal govt run scheme called the Personal Property Securities Register (PPSR). Hence wondering if anyone has had first hand experience with these things to put my mind at ease. I guess more googling for me when i get a chance.....

as Annie said unless u are 100% sure it is going to be paid off before u purchase the car , i would not be touching it

[The X]

Plenty of cars still on finance are sold successfully, just a matter of "doing it properly" with minimal risk to the buyer. No biggie.

Just to figure out the correct execution...