Buying a bike with finance owing - what to do?

[Corse1]

As the title suggests I am interested in a bike but there is finance owing....is this the correct way to go about it?
1-put bike in my van
2-Take owner to finance company
3-Pay out finance and give owner remaining money
4-Go and do change of ownership with the seller and say see yah later......

[imdying]

As the title suggests I am interested in a bike but there is finance owing....is this the correct way to go about it?
1-put bike in my van
2-Take owner to finance company
3-Pay out finance and give owner remaining money
4-Go and do change of ownership with the seller and say see yah later......

You need to check with the securities register so that you know exactly for yourself who has a financial interest in the vehicle. If there is just that single finance company, then you need to go to them, get a final payout figure, pay it, and get a notice that states they have no further interest in the vehicle. Once you've got that you're good to go. But yeah, you're on to it. Just don't believe anything you're told by the seller, find out for yourself.

[pete-blen]

As the title suggests I am interested in a bike but there is finance owing....is this the correct way to go about it?
1-put bike in my van
2-Take owner to finance company
3-Pay out finance and give owner remaining money
4-Go and do change of ownership with the seller and say see yah later......

Check the bike out first for other intrested partys..
The rest sounds about right to me....
There should be a rebate for paying out the
finance early...see if yer can fined away so you get the
rebate...

[HenryDorsetCase]

As the title suggests I am interested in a bike but there is finance owing....is this the correct way to go about it?
1-put bike in my van
2-Take owner to finance company
3-Pay out finance and give owner remaining money
4-Go and do change of ownership with the seller and say see yah later......

Pretty much spot on.

DO NOT TRUST THE OWNER WITH YOUR MONEY! or to release the security. Realise that if they dont pay off the finance in a private sale the charge sticks to the bike and it could be repo-ed if the hook is not discharged.

The hilarious and fun thing is ringing the finance co and some fuckwit going "Oh yeah I cant talk to you because of the Privacy Act" "Well do you want your fucking money back or not? usually suffices for an answer"

[Corse1]

So does motor web just tell you that money is owing.........then you have all the details the seller tells you.

[neels]

Either pay the finance company yourself (which they may not let you do as it's not your account), or don't part with your money until you've seen in writing that they have no further interest in the vehicle.

The interesting thing is that there may be nothing actually owing, one of my bikes had 2 securities against it, but only because they hadn't taken them off when the money was paid back.

[imdying]

The interesting thing is that there may be nothing actually owing, one of my bikes had 2 securities against it, but only because they hadn't taken them off when the money was paid back.

That was my experience also, but I still made damn sure I had a signed notification from that company, on their letterhead, confirming they had absolutely no further interest in the vehicle.

[HenryDorsetCase]

So does motor web just tell you that money is owing.........then you have all the details the seller tells you.

PM me the rego number and your email address, I will do the search and email you the result. I will wear the $1 + GST charge for searching the PPSR, because I am a public servant.

[HenryDorsetCase]

That was my experience also, but I still made damn sure I had a signed notification from that company, on their letterhead, confirming they had absolutely no further interest in the vehicle.

I'd be getting in their faces as well about registering a discharge: not releasing when payment is made is bloody slack.

[imdying]

I'd be getting in their faces as well about registering a discharge: not releasing when payment is made is bloody slack.

Did not care, just wanted bike!

[Morepower]

The correct way is to get the current owner to get a settlement statement from the finance company sent or E mailed to you direct.
This statement should state the amount required to settle , a date this amount is valid to and that upon receipt of the funds that they undertake to release their charge. Pretty standard stuff so should be simple.

[Corse1]

I'd be getting in their faces as well about registering a discharge: not releasing when payment is made is bloody slack.

Pm sent

[Corse1]

The correct way is to get the current owner to get a settlement statement from the finance company sent or E mailed to you direct.
This statement should state the amount required to settle , a date this amount is valid to and that upon receipt of the funds that they undertake to release their charge. Pretty standard stuff so should be simple.

Yes thats what He said he would do so will push for that as well.

[mikemike104]

I'm a lending consultant for a credit union in Hamilton. This is a part my everyday working life, dealing with securities over motor vehicles.

Sounds like you have it sorted, everybody's posts so far have been good advice. If I can help in anyway let me know but here's how I'd do it.

1. Get seller to contact finance company / bank asking to provide settlement in writing (you need to get a copy of this for yourself, the settlement amount should be for the day after you make payment assuming you pay by direct credit)

2. Settlement in writing should be less than what you are paying for the bike, if not you will need a written agreement from the secured party to state they will discharge interest over the asset upon receipt of agreed amount of money.

3. Pay money owing, direct credit is often easiest as you pay the amount as per the written agreement, get receipt of transaction so you can prove the amount to settle has been sent to the secured parties account (their bank accounts details already provided in writing on settlement fax / email).

4. Pay seller the rest (if any)

5. Ride new bike and relax, discharge of interest will be emailed or faxed / posted to you after the secured party's bank gets the money you sent (usually following day), can take up to 10 working days till some finance companies will discharge their securities, which is b/s because if the mts / direct credit isn't dishonoured within 2-3 days its not going to be a problem, and you sent the money, you know you had enough money to send in the first place, its not going to be a problem.

That's my method anyway, I use it up to 5 times a day sometimes, I've been in the same position for 4 years and I've never had a finance company / bank repo a car from one of our members that they had bought with a security over it.

Mike