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Buying a 2nd hand bike with finance on it...

Discussion in 'General Motorcycling Discussion' at netrider.net.au started by Noticibly F.A.T, Jul 22, 2008.

  1. I'm about to buy another bike, but its got finance on it....

    So, do i just buy it, and write up a contract stating that the seller (He) will pay off the loan on the bike in full within 48 hours, and then the day after i call vicroads for one of those free finance checks on it?

    Or... how do i go about it?
    Any help is appreciated as i'm leaving in about 2 hours to take it to a mechs for an inspection, then when i get back we are talking price (assuming all goes well)


     
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  2. my k6 had finance on it when i went to buy it.
    i got the guy to take out personal loan and pay off finance company b4 i bought it.
    make sure its cleared through REVS ect before you pay any money..
    Your new bike can be repossesed!
    P.S. pay for a REVS certificate before purchase..
     
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  3. I believe this has come up before - have a search.

    From memory the safest approach seemed to be to have the seller get a payout figure from the finance company, then you pay out the finance directly and only give the balance of the cash (if any) to the seller. That way you know for sure the encumbrance is cleared.

    Edit: You'd want some sort of signed sales contract for the bike and to have paid and got a receipt for a deposit before doing that, just in case the seller decided to sell it to someone else once you'd paid the finance...
     
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  4. This is an interesting question.

    I sold my car for $30k which had Finance attached. No contract signed, he paid cash and that was it. I paid the Finance off and the transaction was completed without a hiccup. I am an honest guy so it's not like i was ever going to do anything..... but how could he know that? BTW Yes, i disclosed the details of the Finance to him.

    I think most people with Financed cars/bikes will trade them in and the dealerships take care of it. Honestly, i wouldn't touch a Financed bike/car with my own money. The guy could keep the money in which case the bike is repossessed and you are left with nothing.
     
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  5. I'm with Bravus on this one....

    I bought a 2002 Suzuki GSXR 600 privately a few months ago that had finance owing on it.

    What I did was firstly pay a small deposit to the seller, and then obtained the pay out figure from the seller's finance company. I then sent a bank cheque to them to pay out this guy's loan. I then paid the seller the cash difference when I went to collect the bike.

    I also got the seller to sign a statement agreeing that the finance had been paid out and got him to also provide me with a copy of the letter received from his finance company confirming that his loan had been paid out.

    I also got an encumberance certificate sent out to me from the SA Vehicles Securities Register (equivalent of REVS).

    Buying a bike with finance owing on it isn't necessarily a problem if you know what you're doing and are cautious and patient etc.

    Cheers,

    Weasel
    :biker:
    "Four wheels move the body, two wheels move the soul...."
     
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  6. I'm with Bravus on this one....

    I bought a 2002 Suzuki GSXR 600 privately a few months ago that had finance owing on it.

    What I did was firstly pay a small deposit to the seller, and then obtained the pay out figure from the seller's finance company. I then sent a bank cheque to them to pay out this guy's loan. I then paid the seller the cash difference when I went to collect the bike.

    I also got the seller to sign a statement agreeing that the finance had been paid out and got him to also provide me with a copy of the letter received from his finance company confirming that his loan had been paid out.

    I also got an encumberance certificate sent out to me from the SA Vehicles Securities Register (equivalent of REVS).

    Buying a bike with finance owing on it isn't necessarily a problem if you know what you're doing and are cautious and patient etc.

    Cheers,

    Weasel
    :biker:
    "Four wheels move the body, two wheels move the soul...."
     
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