We hope that you enjoyed our last post that was about selling a car under finance. On our regular readers demand, this time, we are going to explain about buying a car under finance in Queensland.
When it comes to buying a house and a car the process can be a bit complicated. However, it substantially differs in terms of cost and finance. If you are buying a property with a loan outstanding, it can work for you as banks clear mortgages by paying other banks.
Contrarily, buying a car that is under finance can be a really terrible process than buying one with a clear-title. If you want to avoid any trouble, you need to do your homework in advance. Just make sure to gather basic information about it through vehicle’s service record, maintenance problems, etc.
This will help you to clearly understand the financial status of vehicle before purchasing it. If you ignore to check this crucial detail, you could face trouble after buying the financed vehicle.
Here is, how you can buy a car that’s been financed:
When you buy a used vehicle that has been financed, it is necessary to check Car History Report. By using it you can know if the vehicle has an outstanding debt on it and which financial institution holds it. If you purchase a vehicle without checking history report, then the onus of outstanding debt will be on you. The worst part is that you can even lose the vehicle’s ownership if you don’t repay the debt.
It all boils to understanding how the process of car loan works. Under the auto loan, the car is subjected to finance not the owner. This means the finance provider can repossess the vehicle, if the owner fail to pay off unpaid debt.
In this case if a buyer purchase an automobile with an unpaid loan against it, he is obliged to pay it. This why it is best to check the vehicle history report. When buying from private sellers. While auction houses and dealerships are liable to sell a used car after providing its clear title. Otherwise, they are charged penalties for breaching their regulations.
If the owner is not disclosed to you about the money owing against the vehicle, you’ll get smacked with the loan. In some cases, your financial company can even repossess the automobile to recover their money.
If you are ready to buy a car with money owing on it, make sure to talk to the seller about your options. This means discussing about how they are going to pay off the remaining debt. As long as the buyer is honest about the transaction process, it is risk-free to purchase a vehicle under finance.
If a seller is offering an auto under finance, they can be intentionally deceiving you. Or, perhaps they know nothing about the vehicle encumbrance.
Whatever the case might be, it will be best to avoid such deals. Although buying a car under finance is daunting, but you can still avoid the grief by checking PPSR. Checking the Personal Property Securities Register or PPSR is a cheap and best way to buy an automobile under finance without risk.
In January 2012, PPSR replaced the REVS (Register of Encumbered Vehicles) check which was outmoded. The PPSR is a vast electronic online register used nation-wide to keep a record of debt held on boats, motorbikes, cars and any valuable property. Now, you can also check a car’s VIN details or vehicle identification number using their website.
When you consider purchasing a vehicle, make sure do your research on the PPSR. You will just need to pay a few dollars for it. It is a simple way to find whether or not a loan is held on the vehicle that you are interested to buy. If it hasn’t been paid off, you can use PPSR to get a certificate with information about loan types and who provides it.
Sure, you can purchase a vehicle with finance on it, if you show your due diligence during the process. Also make sure to confirm the honesty of your prospective seller or dealer. When you put your signatures on the bill of sale make sure to thoroughly check. It must state that the vehicle in question is free from any unpaid debt amount.
If the seller chooses to pay off the debt by using sale price, be careful. Make sure to perform the sale transaction in a bank or financial institution that provides the finance on the vehicle. This way a seller can pay off remaining debt and you can get a car with clear-ownership.[ssba]