Buying a car under loan
#1
Buying a car under loan
Hi all,
I'm looking for used cars for sale by private owners. Somehow the cars I'm liking turn out be under "encumberence". means under loan or lease. Is it advised to buy cars under such arrangement. Owners are advising me that they can quickly pay off loan, when I pay them loan or some kind of joint cheque.. looks dodgy to me..
Can someone advise what buyer MUST NOT do before buying a car under encumberene
I'm looking for used cars for sale by private owners. Somehow the cars I'm liking turn out be under "encumberence". means under loan or lease. Is it advised to buy cars under such arrangement. Owners are advising me that they can quickly pay off loan, when I pay them loan or some kind of joint cheque.. looks dodgy to me..
Can someone advise what buyer MUST NOT do before buying a car under encumberene
#2
Devil's Advocate
Joined: Feb 2008
Location: Mandurah
Posts: 2,269
Re: Buying a car under loan
Hi all,
I'm looking for used cars for sale by private owners. Somehow the cars I'm liking turn out be under "encumberence". means under loan or lease. Is it advised to buy cars under such arrangement. Owners are advising me that they can quickly pay off loan, when I pay them loan or some kind of joint cheque.. looks dodgy to me..
Can someone advise what buyer MUST NOT do before buying a car under encumberene
I'm looking for used cars for sale by private owners. Somehow the cars I'm liking turn out be under "encumberence". means under loan or lease. Is it advised to buy cars under such arrangement. Owners are advising me that they can quickly pay off loan, when I pay them loan or some kind of joint cheque.. looks dodgy to me..
Can someone advise what buyer MUST NOT do before buying a car under encumberene
Mad if you do.
#3
Re: Buying a car under loan
But yea, its a headache. No wonder most of the top range cars will be under finance, so I think most people will be in this situation :-(
#4
Re: Buying a car under loan
The finance company owns the vehicle until the loan is repaid.
If you were to pay a seller the price for the vehicle and that person then decides not to pay out the debt to the finance company and then ceases to make the repayments, the finance company are well within their right to reposess the vehicle from you.
Be very careful if you intend to purchase a vehicle when there are outstanding debts to the vehicle as you will become liable for those debts.
It may well be in your interest to purchase a vehicle from a dealership and not a second hand car yard or private seller.
Regards
Barney
If you were to pay a seller the price for the vehicle and that person then decides not to pay out the debt to the finance company and then ceases to make the repayments, the finance company are well within their right to reposess the vehicle from you.
Be very careful if you intend to purchase a vehicle when there are outstanding debts to the vehicle as you will become liable for those debts.
It may well be in your interest to purchase a vehicle from a dealership and not a second hand car yard or private seller.
Regards
Barney