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Buying a bike private that is under finance?

Discussion in 'General Motorcycling Discussion' at netrider.net.au started by Iron-Chef, May 2, 2007.

  1. I am negotiating on a private sale bike that I know the owner purchased with finance and still owes about what the sale price will be.
    What should I do and how should I proceed if we agree on a price so that I dont get caught somehow?

  2. Make him take out a loan to pay off the finance and then buy the bike?

    I honestly don't know if there's any other safe way to do it. Perhaps you should take your enquiry to a 'legal-eagle'? There might be some sort of binding arrangement you can make.

    Alternatively, just buy the bike for the difference in the payout - and you assume the debt associated with the bike. I think once you take ownership it's your debt anyway, so that *might* be an easy way around it. Again, get some professional legal advice.
  3. From the REVs website:

  4. Dont do it.

    It's that simple.
  5. I remember when I purchased my current car, hmm 10 years ago (EF falcon, 96) and I've done a grand total of like 30,000K-40,000MS on it since :LOL: Anyway, I was told that the company (FORD?) put a 'flag' on the car rego so it cannot be sold until it was fully paid off. Does this still happen, either in Vic still and/or Aus wide? Or was I being fed a load of shit in regards to not being able to sell it? :?:
  6. Hi,

    I would be of the opinion that if the amount of the loan is for less than the price you are paying for it then you could ask for a final payout figure from the institution and pay them directly and pay him the balance...then you know the loan has been payed off. If you check with vicroads they can tell you who has the interest in the bike and you can cross check what the owner tells you. (sorry for some reason I assume you are in vic)

  7. This is not always a good idea as the vehicle is the property of the finance company.If the seller fails to keep up the payments on the bike and defaults on the loan they are leagally allowed to repocess the vehicle to retrieve their outstanding monies
    Without knowing all the details and presuming this is a hire/purchase arrangement this person may not even be allowed to sell the vehicle without the approval of the finance company
    You can then take the guy to court for but this will take years
    If you buy from an authorised vehicle trader this is not appicable
    Go to the VICROAD they have a database on which vehicle is finance is checked
    Or speak to the finance company they may refinance the loan using other
    collateral eg car
    Good luck
  8. You mentioned that the monies owed is about what the sale price would be.......Short answer.

    Tell him to give you the bike for free and you can pay out the rest of the loan. :p
  9. Thanks - I'll certainly check into things some more before I make any move.
  10. i dont know what the others said but;


    anyone can get a loan, not pay a cent, sell the bike for full price and both the bike and the loan go to new owner.

    decide on a price, lets say 10.000. if the amount owing is 8000, you pay 2000 and inherit the loan [get out of interest if you can].

    stump it up! :cool:
  11. I guess the one other point is that this is going to involve you in a fair bit more hassle and stuffing about, and the price should definitely reflect that if it's going to be worthwhile.
  12. Other thing is, they can get paperwork from the company saying the loan is say $5,000 and then potentially redraw or extend the loan so it's $10,000.

    So, you have an agreement where you have paperwork and everything saying that the total price is $10k - $5k to them, $5k to pay off the rest of the loan.

    So you pay them $10,000 - $5k to them, $5k to the loan mob, then get slugged with a bill for $5k from the loan mob afterwards.

    Let them sort out clear title before messing with it.
  13. Make the payment to the finance company
  14. When I brought my car it was under finance. The guy owed more on finance than what I brought it for. What I did was get a copy of the amount owed from his finance company. Got a bank cheque (not personal) for the difference and sent mine and his bank cheques to the finance company after it was all signed over to me.
  15. It makes sense to only buy it free and clear... but what if the seller is selling it precisely because he's broke and can't get finance? As I said, the price should reflect the hassle and (slight, IMO, if you follow the steps above) risk, but it might be worth it if it does.
  16. My Hilux was still encumbered when I listed it for sale.

    I was fortunate enough to have the savings to match the payout figure, however I would have otherwise gotten an unsecured loan and paid it off completely before selling it to a 2rd party.

    ... it's just so much less frigging around. Especially when we bank electronically these days.
  17. dont do until he has paid it out in full. get him to get a p/loan to pay it all out ,otherwise i wouldnt go there!!!
  18. Is anyone able to answer this query thanks :) Does a flag get put on(or did it used to) that doesn't allow it to be sold if under finance or was it a load of crap?
  19. Showing my hand here but yes it was true back in the good old days 87 / 88 was the days of an encumberance being loged with Vic Roads RTA as the legal owner of the car was the finance company not the registered driver of the car note the diference ie lawyer speak so you copped the speeding bills not the finance company

    Thats all before the computers etc where upgraded and the certificate system was introduced

    please refer to the Vic roads website for more current rules and regs
  20. I recently brought a new car for my g/f and it had finance owing on it to Esanda. When applying for the loan the condition was a revs check which showed the amount of money owing to Esanda. When the bank approved the loan the check had to made out to Esanda so the car would be paid off.
    No problems. Make sure you ask the seller for the exact payout figure before you apply for a loan (if you are) or make out a check payable to the finance company.
    This will only apply if the selling price is equal to or lesser than the finance on the car....otherwise you will have to work it out with the seller.
    Pending on how badly you want it.