Buying a second-hand car is commonplace in Adelaide, but when a car still has finance owing, the process is a little more complicated. Many B will naturally feel a little apprehensive when buying a vehicle with finance owing and would rather buy a vehicle with a clean slate so that there are no potential complications or surprises. However, if you do your homework, you can still buy a finance-owing vehicle without a hitch.
Keep reading on for Car Removal Adelaide’s explanation of the process of Buying a Car with Finance Owing.
It’s Australian law that car buyers check if a vehicle has finance owing. Yes, that means it’s your responsibility. Luckily, you can do this by going online and searching the Personal Property Securities Register (PPSR). The PPSR is an Australia-wide register for all loans held on Australian vehicles and assets. This will tell you if a vehicle has a free title and financial status and you simply need to type in the vehicle’s registration number to find out.
Usually, a car seller will be honest about their vehicle’s financial status and the amount of finance owed will make the vehicle’s overall price. For example, a car that is being sold for $20,000 with $5,000 owing will see you pay $15,000 for the car and the remaining $5,000 for finance. The money you pay for finance will have to be paid as a separate check to the finance provider. The seller must request a payout quote and letter from their provider that is dated and signed which is then sent directly to you before any cheques or payments are made. After payment, transfer of ownership must be done immediately.
If a car seller doesn’t mention that your potential future-car has finance owing, then you should walk away immediately. There is no valid reason why a car seller wouldn’t mention this, and they are clearly being dishonest. Both parties should be as transparent as possible, just like any other time you might buy a car.
It’s important to know that the car is being used as security by the finance provider. This means that if you fail to provide payments on time or for any other issue, the loaner may claim your vehicle until all pending payments are completed. This is one reason why you must make sure if there is finance pending on a vehicle so that there are no nasty surprises.
For Adelaide’s trusted Car Wreckers, Car Removal Adelaide is here to help.