Buying a car still financed

[ClassicB]

Hi Guys

I have the opportunity to buy a vehicle from a fellow forum member. I am looking to pay cash, but the car is still financed by the bank.

The owner seems like a stand up guy and advised that once I pay him he will settle the loan and I can pick up the papers from the Jhb Branch of that bank or he can courier it to me.

Has anybody bought a car this way? any advice? :ty:

 

[Sabretooth tiger]

I have, but it was a close friend, who I knew I could trust

Yet, I still went with him to wesbank's offices. Made the transfer. They signed the car off, and closed the loan. We did a sale agreement and signed with witnesses. Two weeks later they send me the papers.

 

[wtrlan]

Hi Guys

I have the opportunity to buy a vehicle from a fellow forum member. I am looking to pay cash, but the car is still financed by the bank.

The owner seems like a stand up guy and advised that once I pay him he will settle the loan and I can pick up the papers from the Jhb Branch of that bank or he can courier it to me.

Has anybody bought a car this way? any advice? :ty:

In my case, I went to the bank with the current owner and made payment to the finance house directly and not into the owners name.

One just needs to know in some cases the vehicle needs to be transferred from the finance house or the vehicle dealership to the original owner first before the vehicle can be registered into your name.

 

[prospect]

Rather pay the amount into the vehicle loan account :idea:

 

[akash]

Its safe for both of you for the funds to be paid into the financing bank account.

Legally the car is owned by the bank.

Any profit the the seller is making can be paid into his personal bank account.

 

[rodga]

Hi Guys

I have the opportunity to buy a vehicle from a fellow forum member. I am looking to pay cash, but the car is still financed by the bank.

The owner seems like a stand up guy and advised that once I pay him he will settle the loan and I can pick up the papers from the Jhb Branch of that bank or he can courier it to me.

Has anybody bought a car this way? any advice? :ty:

In my case, I went to the bank with the current owner and made payment to the finance house directly and not into the owners name.

One just needs to know in some cases the vehicle needs to be transferred from the finance house or the vehicle dealership to the original owner first before the vehicle can be registered into your name.

+1 Sold my golf like this in september
Buyer paid into finance house directly, balance to my account
collected the car once funds cleared in my account the next day
I did the transfer and other stuff and had the docs couriered to him

 

[Rory]

Haven't bought one yet but I've sold my last 3 cars this way.
+1 for settling by doing a transfer into the finance house account. With wesbank you can generate the settlement letter online and it gives you the bank details for doing a transfer. If you basically want to take the car immediately then best to go into a branch and do it there.

 

[AshG108]

I have the used the exact same way as the gents above, safest for both. Money can always cause unnecessary trouble, rather got he direct and quick way.

 

[zaleonardz]

Get a letter of settlement from the bank.

Pay the money to the bank directly, give the owner the difference.

Perhaps draw up a small contract.

Me and Gizmo are in this very situation right now.

I actually settled the x3 when I knew Gizmo was taking it, he put the cash into my account.

The problem was it took about 3 weeks to get the papers, and now we are sitting with a situation whereby the car needs to be transferred into my name first, to spite having given Gizmo the yellow forms signed by the bank, as well as the original RC1 document.

Gizmo spent an entire day at the licensing department, and still could not get anything right.

I now need to go and see them, but I am fully booked this week.

The issue is, lets say you put 50k into the gents account, he might have the "urge" to go visit Sun City.

Pay money into the bank, settle it, pay the client the balance, then request (the owner may have too) that the papers be collected by yourself, or delivered to your home/business.

 

[Andy1GP]

Get a letter of settlement from the bank.

Pay the money to the bank directly, give the owner the difference.

Perhaps draw up a small contract.

This is exactly what I did with the Z4M. Also a forum member, the car was kept at the BMW dealership. We both went to the bank, I did the 2 transfers (after the latest settlement amount was received form wesbank) and with proof of payment I took the car keys and drove home.

The papers arrived not long after.

Trust is a rather big issue, Since you've met the guy it should work out well.