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NSW Question on purchasing a financed bike

Discussion in 'Politics, Laws, Government & Insurance' started by jonno86, Apr 14, 2013.

  1. Hi All,

    I am considering buying a bike off this seller, but he has financed owed. I decided to revs check as it was financed under 'BOQ'.

    I'm quite iffy with financial owed related issues as a buyer i'm paranoid. If i was to purchase the bike, does the debt owed gets carried over to the new owner?

    If previous owner stops making payment/files for default does the bike gets repo'd even if I have the REVS CERT (encumbered status)?


  2. The debt should be paid out either before you buy the bike or as part of the transaction. Don't get involved with someone else's debt IMHO
  3. Find out how he plans on paying off the loan. See if he can possibly pay off the loan first which would be the best option.

    Either that or get the seller to get in contact with their finance company and request a payout figure. This will be valid for about 3 days, with this figure, you can then supply him with the money to pay the loan off. If you distrust him, you can request to maybe go to a branch of the institution and hand over the payment together, but this way, you've covered the finance, and your butt.

    Is the purchase price more or less than the amount owing?
    • Like Like x 1
  4. The bike remains as collateral for the loan. If the loan is not paid out you lose the bike if the debt recovery chaps come knocking.

    Loan must be paid out either before or ASAP after you provide purchase payment.
    • Like Like x 1

  5. Less as debt is roughly $1900.

  6. If what you are paying is less than debt, I'd be cautious. I'd only purchase if he has the difference between purchase price and debt obligation ready to go to pay the rest of the loan off.

    That way you can go to the bank and pay the loan off and he can transfer the rego over.
  7. In that case get two bank cheques made out.

    One for the BOQ for the $1900 amount owed and the balance to the seller. This ensures that he pays the loan out.

    Dont just give the guy money to pay it off. A bank cheque in the finance companies name with the amount owed is the only way to ensure that he wont spend that money on hookers and hash.
    • Like Like x 2
  8. I'd stay clear of this one.
    • Like Like x 4
  9. I recently sold a bike under finance. I arranged that he DD the finance company XX and the balance to me. Once I I confirmed the loan was paid I released the bike.
    If the bike is showing as being financed on a REV check you cant really buy it till that's cleared.
  10. When i bought mine i went to the bank with the owner and I gave the bank the purchase money. He put in the rest and the bank signed off the loan.

    Don't do it any other way.
    • Like Like x 3
  11. Problem with this way is that there are exit fees on loans. There could still be a couple hundred owing on the bike after the cheques gone through if you just go off the loan paperwork. If he neglects it after he's sold the bike, you could still have it repossessed.
  12. Walk away....your talking about buying a sub 2k bike if i read correctly - find another one without the headaches mate.
  13. As others have said, go to the bank with the seller and request a payout figure.
    Make certain that the seller is also the loanee.
    If you have agreed to buy the bike for, say $4000, make a bank cheque for $1900 to give to the bank. (funnily enough this should be in the sellers name)
    The second cheque or cash of the remaining $2100 goes to the seller. Only hand this over at the last second, once the papers are signed and you have the note from the bank saying the bike is clear.
  14. Don't walk away from a bike because of finance as others have suggested. Plenty of bikes out there on finance and nothing sus about them. As long as when you ask he says yes and you dot all your I's and cross all your t's.
  15. Knock knock. OP says purchase price is less than amount owing. Nothing should go to the seller.
    Reliance here is that the seller will pay the difference at time of sale. Maybe he wants to pay the rest off. I'd be requiring that any balance is paid off at the time of sale or before.
  16. My mistake, if the bike isn't worth more than the debt, essentially the seller pays the difference. If the debt is 1900, the price is 1500, you pay 1500 to the bank and the seller pays 400 to the bank.
    Don't buy unless this is the case.
    If you pay the 1500 to the bank and the seller stops making repayments, the bike can still be repo'd (as the bank holds the title). It's then a civil matter when you try to recover the missed payments from the seller. More hassle than it's worth. Make sure it's paid off.
  17. Sale price is $8.5K, bargain him down to $7.8K so far...
  18. So purchase price is MORE than sale price with only $1900 owing? You said it was less earlier.

  19. I replied it wrongly. My bad ahaha
  20. Got reply back from seller that he won't be paying off his debt first, not til he sells the bike to pay off his debt to keep his good credit...