Right o,Asking this question for a friend. He paid $11000 cash for a car a few months back. He was MEANT to do a check on it but didnt. He received a letter from a finance company a week or so ago saying there was $8000 still owing on the car! Now. They want him to pay the outstanding finance on it,This is really wrong. As if you bought a TV/stereo under finance and sold it before paying it off YOU are liable,As you should be. Not the innocent party that bought the item. So why is this different for a motor vehicle? And what are his BEST options here? Any help on this much appreciated!
loose.unit8,
Sep 29, 5:26am
I have no idea about the law but it seems stupid that someone can take out a loan and just transfer the liability to you without your knowledge or you signing anything.
2sheddies,
Sep 29, 5:29am
That's the key bit. Why on earth people don't do proper due diligence when forking out such large amounts is beyond me. Time and again those in the know on here are warning of the pitfalls.
350b2k,
Sep 29, 5:30am
Agreed. The person who made the debt,Should be fully liable,So in the end. The seller gets away scott free on a finance deal THEY were binded to.
350b2k,
Sep 29, 5:31am
Agreed aswell. Not good.
franc123,
Sep 29, 5:31am
Worse, its not hard to check if there is security on them either.
henderson_guy,
Sep 29, 5:32am
Why, oh why, are there so many of these types of threads lately? Your friend is a moron, the person who sold the car is now laughing all the way to the bank. Either kiss the car goodbye, pay the outstanding balance, or visit the seller with some big guys and see if they'll pay up.
loose.unit8,
Sep 29, 5:35am
Is there any legal come back from the guy who sold it?
Seems borderline fraudulent not being up front.
350b2k,
Sep 29, 5:38am
Haha yeah dont worry mate,Ive told him that one several times! And the guy will be tracked down for sure. A lesson will be learnt for both parties
gabbysnana,
Sep 29, 5:39am
the car now cost $19k and he has to take the previous owner to the dt to recover the $8k. Quickly before he leaves the country.
350b2k,
Sep 29, 5:46am
Funny thing is. IF he never put the car in HIS name,The ex owner WOULD be still liable,Dunno how a simple change of ownership can make you liable for the outstanding debt just like that
henderson_guy,
Sep 29, 5:51am
Well, no, the finance company would still have a registered security interest in the car and would still repo it if it hadn't received its payments, no matter whos name was on the paperwork. They don't care who has it, they just want their money.
mm12345,
Sep 29, 5:54am
Perhaps it's the law which is the ass. Good for business, banks, finance companies for some assets such as cars to have debts recoverable in perpetuity regardless of circumstance, but it's a ratshit deal for the general public to face the consequences of risk taken on by those lenders - if they make a simple mistake. If this was changed - then lenders might be a bit more careful about who they lend money to. That would be a good thing IMO.
seadubya,
Sep 29, 5:57am
The car is the security on the loan, not the owner. The finance company "own" $8k of it and are within their rights to get their cash back. Spending even $1k without spending a few dollars on a security check is an expensive lesson to learn let alone $11k, especially since there are so many different ways of attaining that information. I guess there was no PPI either? If it dies your mate might end up owing more than the car is worth.
differentthings,
Sep 29, 6:02am
Hide the car. If no one pays the $8000 (more by the time fee's get added to it) it will get repossessed and sold. By the sounds of it the original owner is already behind the payments.
jmma,
Sep 29, 6:03am
I wonder if the deal was "to good to be true" (o:
shorebee,
Sep 29, 6:06am
i would re register new plates and new address, do the check or 0800find now to ensure debt is registered, was it from a dealer or mvd or trader. he has not stolen it and it cant be reported stolen but he cannot resell it, he needs to sort with the person he brought from as they are the debtor and they should have paid it off but he made it easy for them not to.
350b2k,
Sep 29, 6:07am
Car was worth the price paid.he may be an idiot,yeah lol
3tomany,
Sep 29, 6:09am
this is a good idea do not let finance company know where you live and put rego under a different address
350b2k,
Sep 29, 6:10am
Good info! Thankyou! And it was private seller. 0800findnow? cant find it haha
350b2k,
Sep 29, 6:13am
Is a good idea,But the letter being sent to his house. They know where he lives
fordcrzy,
Sep 29, 6:18am
no point in the new address if theyve already contacted him via the old one. if its not at the New address theyll just look for it at the last known.
3tomany,
Sep 29, 6:35am
true so sell it to ya great great granny last known address 500051 cemetery road
supernova2,
Sep 29, 6:56am
Total waste of time. The security will be registered against the VIN number which never can change. The finance coy will never give up and will eventually find the car and it will be picked up.
Only solution is to pay up and then find, if you can, the person who took out the loan (which may not be the seller) and do whatever is necessary to extract the money from the liable person.
3tomany,
Sep 29, 7:00am
people will pay a lot of coin to keep their knee caps. just sayin
Since the public registrations are closed, you must have an invite from a current member to be able to register and post in this thread.
Have an account? Login here.