Vehicle Finance Question

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Wheelbarrow01

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#196047 17-May-2016 12:06

I have a car listed for sale on Trademe (for around $35k), and apart from the usual clowns trying to low-ball me on the price, I have also been contacted via text message (from an 022 mobile number) by someone who says they are very keen on the car, and wanting to know all about how to finance it.

My trademe advert states that there is finance owing on the vehicle, however it does not state who it's with.

This person wanted to know who it's financed through to see if there is any way they can take over the loan upon purchase. I told him/her to speak to someone at GEM (GE Money) to ask if that is possible - although I don't think it is. I also said they may be best to investigate finance with their preferred lender instead.

This person now says they are trying to arrange their own finance which is fine, but it strikes me as odd that they have not even viewed or test driven the car yet, nor have they even asked to. They also haven't asked me any questions about the actual vehicle itself.

Because of their lack of interest in the actual vehicle I am now worried that this is some sort of scam - perhaps an attempt to take a loan out on the vehicle without actually owning it. Is this sort of thing even possible?

I assume that no lender would even touch it while I have finance owing on it, but it's the general disinterest in the vehicle itself that has me a bit worried.

Thoughts? Should I be worried? Is this why people smudge out their rego plate number in photos?

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#1554080 17-May-2016 12:29

MMMM interesting.

If there is finance still owing on the car then how can you sell it, has it been used as security on the loan?

Does the finance company (which sounds like GE) have security interest on the PPSR for the car?

My advise would be if they do is to get a loan to pay off GE and get the car removed from the PPSR then sell the car and pay off the loan.

Don't think many people would part with the money when their is security interest on it.

PoHq

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#1554088 17-May-2016 12:34

Years ago I sold a car in the UK I had with finance still owed. The buyer wrote 2 cheques out. One for the finance company for the amount owing and the balance to me.

It can be done but gets a bit messy.

tripp

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#1554092 17-May-2016 12:41

PoHq: Years ago I sold a car in the UK I had with finance still owed. The buyer wrote 2 cheques out. One for the finance company for the amount owing and the balance to me.

It can be done but gets a bit messy.

I'm not saying it can't be done but most people these days will text the number plate to check for finance on the car, if there is then it will be hard to sell as if the person selling it does not pay it back the finance company can get it repossessed

PoHq

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#1554096 17-May-2016 12:45

Agreed. Most people will just not proceed as soon as they see finance owing I know I would.

I guess you just have to find a buyer who is willing to deal with both finance company and seller. Another option would be for the seller to get some temp finance from the bank and pay that back once the car has sold.

Wheelbarrow01

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#1554118 17-May-2016 13:15

I have been pretty transparent in the Trademe advert, with the following text:

"NOTE: There is some finance owing on this vehicle – a portion of the sale price will be paid direct to the finance company who will confirm clear title with the new owner prior to completion of sale".

I am the second owner, and there was finance owing by the first owner when I bought it. I paid an amount to her finance company (who then confirmed encumbrance had been removed) and paid the balance to the seller. It wasn't a big deal.

This post is more about my suspicion about someone asking multiple questions via text message about how to get finance for the vehicle, but not asking me any questions about the actual vehicle itself, nor even asking to come see/test drive it.

The views expressed by me are not necessarily those of my employer Chorus NZ Ltd

xpd

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#1554120 17-May-2016 13:17

Maybe theyre just wanting to make sure they can get the loan to cover the amount before going in with an offer... if cant get finance, no point test driving etc.

Gavin / xpd / FastRaccoon / Geek of Coastguard New Zealand

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#1554128 17-May-2016 13:35

Two very possible scenarios. A genuine buyer, a genuine scammer. Time will tell.

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#1554129 17-May-2016 13:37

Maybe this is what the Don is referring to. Usually what goes round comes around, the cheapskate buyers will soon realise they have been cheated, and eventually will stay away. Sorry that's not very helpful.

Blurtie

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#1554132 17-May-2016 13:39

Wheelbarrow01:

.

.... This post is more about my suspicion about someone asking multiple questions via text message about how to get finance for the vehicle, but not asking me any questions about the actual vehicle itself, nor even asking to come see/test drive it.

I sold my Alfa last year similar to this, although the car was only worth 5k. He basically rung me and said he'd take the car without viewing its condition or anything and just went off the photos and description off TM. He even mentioned that he was going to sort out finance for the car himself. I remember thinking at the time that it was a bit dodgy.

But happy to say it was all above board, guy from MTF finance emailed and confirmed details and transferred money. Buyer came to Auck (from Gisborne) and picked up the vehicle. Although he did hitch a ride with a mate of his who was a truckie and dropped him off at the truck office depot in Penrose at 3am - I offered to pick him up at the that time as it was down the road from my place and I'd just had a new born so figured I'd still be up at that hour. Although in hind sight, this should've raised further alarm bells... but I'd already been paid and was happy to have sold the car.

Turns out the guy was a mechanic and an Alfa fanatic so he chose to take a punt. Think he was pretty pleased with what he got in the end...

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#1554136 17-May-2016 13:48

I'd steer clear, I've heard of nightmare stories that start like this. Serious buyers inspect cars and drive them first and ask other questions like the ones you are being asked, later.

Obviously initial questions are normal, but ones of this level generally are reserved for later.

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#1554157 17-May-2016 14:25

joker97:
Maybe this is what the Don is referring to. Usually what goes round comes around, the cheapskate buyers will soon realise they have been cheated, and eventually will stay away. Sorry that's not very helpful.

Yikes this was many meant for the poor traders thread!!! Oops

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#1554158 17-May-2016 14:26

My iPhone is starting to behave really weird

Fred99

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#1554304 17-May-2016 17:35

So if the asking price is $35k, what do expect to sell it for? What's a "low ball" offer, and what's retail price in a car yard? Private seller, no warranty or CGA protection, and no finance immediately available are serious impediments.

I expect it's going to be a long slow and painful process selling a used car for that price, the finance owing on it is going to make it even harder. People with ready cash do tend to want to feel that they've got a bargain.

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#1554324 17-May-2016 18:08

Fred99:

So if the asking price is $35k, what do expect to sell it for? What's a "low ball" offer, and what's retail price in a car yard? Private seller, no warranty or CGA protection, and no finance immediately available are serious impediments.

I expect it's going to be a long slow and painful process selling a used car for that price, the finance owing on it is going to make it even harder. People with ready cash do tend to want to feel that they've got a bargain.

Umm if I had a used car that retails for $90k that's reasonable, really depends on what exact model. Hard to say.

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#1554376 17-May-2016 20:16

xpd:

Maybe theyre just wanting to make sure they can get the loan to cover the amount before going in with an offer... if cant get finance, no point test driving etc.

Yep - spot on. Those who are wanting to buy the car through finance will usually check how much they can borrow before they proceed. The finance company will decide the loan based on the car records etc. They do not have to see the car, especially loans with high interest.

I personally do not see how you can call this a scam when you are not losing anything at this stage. I have a couple of cheap cars under $10k that I sell over the years through trademe. Both buyers did not bother to test drive the car. I think they trust me because of my good feedback. I am more concerned than them just in case if they are not happy with the purchase.

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