Help: Buying a 2nd hand car that still has a settlement amount (financed)

[Nokoff]

Hi guys, I'm looking at buying a used BMW on gumtree. The owner does not have the papers for the vehicle as there is still an amount of R60000 outstanding at BMW finance. Total purchase price is R140000.

I would like to know what the best way to pay this guy is, ensuring that I take ownership of the car without him pulling a fast one.

I can settle his outstanding balance at BMW, but the papers will only be delivered 2 days thereafter, and they are delivered to him, not me. He doesn't have the cash to settle it before I pay him. What is the best way to proceed?

 

[ryanetz]

he needs to write a letter stating that the title natis papers must be released to you and send it through to bmw finanace.

this is what happened when i bought a car from mfc...

its actually quite safer in my opinion.

 

[Bevan]

Don't pay any money to the current owner. Inform BMW Finance that you plan on buying the car and settling the outstading finance amount. Ask the current owner sign a letter stating his intention to sell the car. Once BMW Finance have released the Natis docs and have given you a paid up letter should you pay the balance and take delivery

 

[Nokoff]

he needs to write a letter stating that the title natis papers must be released to you and send it through to bmw finanace.

this is what happened when i bought a car from mfc...

its actually quite safer in my opinion.

Thanks for the advice. I've asked him to email BMW and ask that the papers be released to us upon payment. Apparently if we pay by cheque we can get the papers immediately instead of the 2 day waiting period that applies to EFT.

Once we have the papers, we'll draw a cheque for the balance in his name, and he'll hand over the car. Seems to make sense.

 

[XPD]

Only way to clear payment quickly is to do an immediate bank payment. Most banks have this option. Then forward proof of payment and advise BMW it's an immediate bank payment. They docs will be released the next day. Tell the seller to tell BMW that he will collect. Then you just get the agreement number and collect from BMW finance in Midrand. They not sticky on who can pick it up, long as you have te agreement no. Rememeber you can only collect once they say it's ready. Other option is to ask a dealer to Assit. They will charge a small fee and it's greater protection for you.

 

[Nokoff]

Only way to clear payment quickly is to do an immediate bank payment. Most banks have this option. Then forward proof of payment and advise BMW it's an immediate bank payment. They docs will be released the next day. Tell the seller to tell BMW that he will collect. Then you just get the agreement number and collect from BMW finance in Midrand. They not sticky on who can pick it up, long as you have te agreement no. Rememeber you can only collect once they say it's ready. Other option is to ask a dealer to Assit. They will charge a small fee and it's greater protection for you.

What's the agreement number?

 

[XPD]

Finance agreement number or account number

 

[Clownshoe]

I bought a car in that situation and I wrote two bank guaranteed cheques. One to BMW and one to the owner. So it deal was done at at once and I left with the car. Papers were sent to me direct from BMW a week later.