Welcome to Netrider ... Connecting Riders!

Interested in talking motorbikes with a terrific community of riders?
Signup (it's quick and free) to join the discussions and access the full suite of tools and information that Netrider has to offer.

What if private seller doesn't finalise bike loan?

Discussion in 'Politics, Laws, Government & Insurance' started by Hobo, Dec 9, 2007.

  1. Hello, i'm new to the community and this is my 1st post.
    I'm a new rider, i just got my license a few weeks ago :grin:
    I also just bought my 1st bike! 06 used vtr250 :eek:
    I bought the bike from a private seller, he bought it under finance and hasn't payed it off completely yet. but from this sale he should be able to pay off whats left. This is where i got worried and confused, i haven't registered the bike yet. If he doesn't pay off what he owes, will the dealership come after me? or even re-proses my bike :cry: ?? i haven't bought a vehicle before, so i didn't know these kinda issues. please help

  2. Re: Confused.

    Welcome, and congrats!

    Yup, your potentially screwed and open to having your bike repossessed by the sellers finance company.
    You should have paid the money outstanding directly to the finance company.
    If the seller now having gotten your cash defaults on the loan, then the finance company can, and will eventually, look to recover the bike (if the sellers finance used teh bike itself as security on the sellers loan).
  3. yes if he doesnt pay it off and even if u paid him they can reposses the bike.
  4. do a search on finance and purchase
    Put in your area in your profile and place the state you are talking about in your topic.
    With that info people may be better prepared to answer your concerns.
  5. It's best when buying a bike that has finance owing to get the details of the finance owing on the bike from the owner.

    The you and the owner contact the finance company and normally the finance company will require you to pay part of the payment to them and the balance (if any) to the owner.

    When you pay the whole amount to the owner you are relying on their good will and honesty to pay the finance company the money owning.

    The finance company will still have a registered interest in the bike until the original owner pay them what they are owed, and yes if they continue to refuse to pay what they owe then the finance company can legally re-possess 'your' bike.

    If they sell it and recover what they are owed they will then forward the remainder to you (less any costs).

    You can check in advance if a vehicle has finance owing by contacting VicRoads (or RTA or whatever your state version is) and asking (sometimes paying) for a certificate or statement (in Victoria they are called REVS checks).
  6. In most circumstances loans, for products like bike follow the object rather than the person who took it out.
    Suggest you contact the vendor and their finance company to clarify the situation. Hopefully you wont need to take legal action.
  7. Pro pilot summed up your major issue / concern. The bike may be used as security for the guys loan. If it was the finance company have a claim on the bike and won't release the claim till the loan is paid out.
    This also means the seller never had "clear title" to the goods.

    Now, there are two things to do.
    (i) Check the vehicle securities register. (Vicroads). This will tell you of any security like the one mentioned above.

    (ii) If the vehicle is secured, write to the seller asking for your money back, or the loan be paid out within 48 hrs.

    If it is not secured he could sell it as he wished, and the finance company can only go him for the outstanding $$.
  8. Until you sort this out, if anyone comes to repossess the bike, you have right to deny them entry to your property. As can the owner of any private property that the bike is located upon at the time. A repo man MUST have consent of the property owner before entering.
    If the bike is on the street, or any public place, it's fair game.
    But sort this out now. Do not delay.
    If you paid him by bank cheque, and a REVS check comes back that it is encumbered, ask the bank to stop the cheque. From memory a bank has up to 7 days to clear a cheque.
  9. If he owes 2k still on the bike, and you got it for example 4. pay the financial company 2k and him 1800 - minus the fine for paying out a loan before date, much the same if you payout a lease i would imagne.

    if he winges, seek legal advice and make it clear your NOT paying HIS interest

    gl mate lol
  10. true. my friends dad got a bday pressie from his wife, a plasa tv, they divorced, she stopped payments.. repo cant get it, they fined HER! lol!
  11. thanks for all the advice. problem is all good now. the seller paid off his loan, so no finance company is coming after my bike! :grin:
    for 1st time vehicle buyers, check out revs.nsw.gov.au before you buy the vehicle, i found out about this site after i paid :roll:

    maybe some admin can add info about this in buyers guide, for people who don't know about revs.

  12. like this sticky? :grin:
  13. Ok, just for general advice / info. A debtor can (and often will) get a judgement allowing the sherrif to come onto anyones property and recover goods.
    For a high value item, this is a real danger.