Selling a car under finance.

BENT_8 · 13-10-2021, 11:53 PM

So my Eldest daughter has come to her senses and plans to follow in her older Brothers footsteps and build a house.
problem is, her car repayment takes up a large chunk of her income which could otherwise be redirected to deposit and mortgage.
She bought the car, a MY20 Kia Cerato, new in August last year with a 7k deposit, she currently owes 16.5k.
The finance is with St George, she's found a buyer who we've explained in full the situation and given him a no obligation opportunity to decide if he wants to go through the process and do some homework on how its safely processed or pay an extra 4k for the same car through a yard.

Has anyone had any experience in doing this, obviously we want him to feel safe in handing over his money so would like it transferred straight to St George to clear the title, although i know this will take a couple of days to finalise.
The balance of the purchase price in cash to my Daughter.

He banks with bankSA which i believe are linked to St George.

She's also been offered an instant sale to a Dealership for slightly less which is obviously an easier process but we feel if all parties are satisfied the extra legwork is worth the extra sale price.

Any thoughts.

**kypez** · 13-10-2021, 11:58 PM

I've done this in the past. Get the payout details from the bank. Transfer money to the bank and it clears in a day or so. With the new immediate transfer system, the bank should see the cash immediately as well. Simple enough to do.

Sent from my Pixel 5 using Tapatalk

arm79 · 14-10-2021, 12:24 AM

I know some of this is old school, but this is what I did.

Long ago I found my dream FPV. We agreed on a price of $44k.

The owner explained the car was financed by Esanda, ANZ's financing arm, but was administered directly by ANZ. There was still $66k owning on the car.

I told her the only way I would hand over my payment was when I saw a balance slip from ANZ equal to my payment and we conducted all the swapping of payments at a branch immediately by bank cheque produced there and then at that branch branch.

The owner understood my position and hesitancy, but agreed it was the way to make me comfortable. She was desperate to move the car as well.

We met at an ANZ branch and had a teller produce a current balance slip for the account. She then had a bank cheque produced for the balance minus my $44k, deposited that cheque and had another balance slip produced. This showed the $44k balance, so I had them produce my cheque and deposited that immediately. Then I got a balance slip showing zero balance.

A bit laborious, but I got to see the balance turn to zero using payment methods that, while technically didn't clear then, but weren't reversible and were attached to cash that had been debited and encumbered. And I suppose from the sellers perspective they got to see the balance hit zero too and was comfortable that they wouldn't be left holding the bag without the car.

The teller promised the title would be cleared within 14 days of the balance becoming zero. It actually happened within 7 days. But the important thing was the balance was zero, so even if the title wasn't cleared there wasn't any outstanding amount.

I know bank cheques aren't what they used to be and this could probably be handled by direct transfers, possibly by a teller, but maybe a process like this would see everyone happy.

BENT_8 · 14-10-2021, 12:48 AM

Thanks guys, St George only accept payouts via Bpay or direct deposit, Bpay takes 2 days to clear, direct deposit up to 5 apparently.

Im hoping BankSA can do something like what you've suggested arm79, arrange a transfer between the buyers account and my Daughters loan account with St George finance so he has a receipt of the transaction.

He seemed pretty keen, but i couldn't blame him if he decides its too hard.

xxx000 · 14-10-2021, 06:42 AM

I've bought cars under finance previously.
First step is PPSR check to determine if $ is owing on the car and who with.
Step 2; contact the listed finance company to get details of payout figure as of a chosen date.
Step 3; buyer deposits balance of loan via transfer or cash deposit.
Step 4; buyer pays remainder to seller who provides detailed receipt indicating that there was finance which buyer paid out and certifying that there is no debt now owing.
Transparency is the key to keep both parties happy

Big_Daz · 14-10-2021, 10:06 AM

Ive bought and sold car's under finance.. Run a PPSR to check who the finance company is (and that only 1 is involved) and then get the seller to provide a payout letter with the figure to ensure its legit.

Both the cars I have sold with finance owing where through St George and we where able to go into a St George branch with the payout letter (with account details) and the buyer paid the cheque to them and we both got a Receipt. I got the rest in cash and we went our own separate ways.

Keep on to the seller as well for them to send the letter from the Finance Company saying its paid out and they hold no further interest in the car (I received within a week and forwarded to the buyer for their peace of mind)

hayseed · 14-10-2021, 10:52 AM

Quote:

Originally Posted by Big_Daz

. Run a PPSR to check who the finance company is (and that only 1 is involved) and then get the seller to provide a payout letter with the figure to ensure its legit.

This bit can be important, Its' a Lot harder now with the Federal Govt run PPSR system though...
Back in the Days of State run REVs check, a Mate of Mine went to Buy a Semi Trailer. Found what he wanted agreed on a Price. His Finance broker ran checks in 3 States & found 3 seperate Finance Companies had an Interest It it.
All without knowing about each other...

Needless to say He Ran away....

arm79 · 14-10-2021, 11:45 AM

Quote:

Originally Posted by BENT_8

Thanks guys, St George only accept payouts via Bpay or direct deposit, Bpay takes 2 days to clear, direct deposit up to 5 apparently.

I thought my idea might have been a bit old fashioned. :(

You can do instant large transfers via direct deposit using the Osko system.

When buying the BF I have now, politics and circumstance meant the best way to pay for it was by bank transfer.

I called Westpac and asked them if there were any limits on instant Osko transfers. I was told the limit was set by my daily transfer limit, which at the time was $10k. So my $6500 was well within it. I was told I could set my limit higher if I wanted.

I then called Suncorp, the sellers bank, and they told me they could receive whatever amount instantly so long as the account was setup correctly.

I called the seller and ran a $5 transfer test and it went straight through, so we agreed to do that.

On the day I did the transfer of the amount, it said it was going by Osko but failed to complete. Said it was stuck in processing. I called Westpac and they told me to wait a little bit but they couldn't see any flags.

I called about 30 mins later and they said they couldn't understand why it wasn't completing, it wasn't flagged.

Here is where is gets interesting and concerning. I was told to wait a little longer and if it still hadn't completed to call back and they could cancel the transfer, I would immediately get the money back and could try again.

So I waited a little longer. In the meantime the seller was generous enough to say "I trust you, here are the keys. It will come thorough soon". Wow!

Just as he gave me the keys I got a call from Westpac security who flagged the transaction as unusual and held it until I confirmed it was good. As soon as I did the transfer completed and the seller instantly had the cash.

So from experience and advice from the bank, it is possible to do instant transfers of large amount of money. All things being perfect the buyer and your daughter could stand in the bank and both transfer at the same time to get a zero balance from a teller.

But just make sure the transfer fully processes and completes. It was scary to hear the Westpac person say they could cancel an uncompleted Osko transaction and return the money instantly.

You can't do that with normal transactions that go into the black hole and pop out the other end 2 or 3 days later.

Quote:

Originally Posted by BENT_8

He seemed pretty keen, but i couldn't blame him if he decides its too hard.

Money talks. If the deal is good for him then he will hang on and make some concessions to make it happen.

'

ebv8 · 14-10-2021, 12:01 PM

i sold a car through ford credit, I got a payout figure and went with the buyer to the bank and the buyer paid ford credit direct and paid me the rest in cash and drove the car away, it clears in a few days but because they did the transaction they were comfortable.

I also recently bought a car on finance (didn't know, i didn't do the check) and told the seller its encumbered over the next week of me sh!tting my pants they arranged the payout, paid it and kept me in the loop of everything.
worst week of my life... almost

Yellow_Festiva · 14-10-2021, 12:11 PM

At least your honest and up front about it.

I had a house mate move back to NZ after losing his job here and he asked me to help him sell his car.

I found a buyer who was totally clueless of the process and was going to transfer the funds into his account. I advised the buyer about doing the usual checks and they said they had no idea about that.

So I offered to help them. Turns out the $13,000 car had a $12,000 loan on it which the seller didn't disclose to me or any of the buyers in their communications.

Hell no. None of my business in the end but I'm not going to be made a part of their fraud.

That buyer did eventually buy the car but it was following the right processes.

I think a simple online check is less than $3... I'm sure there are still people that get done for thousands each week.

arm79 · 14-10-2021, 12:11 PM

Quote:

Originally Posted by ebv8

i sold a car through ford credit, I got a payout figure and went with the buyer to the bank and the buyer paid ford credit direct and paid me the rest in cash and drove the car away

I think the issue at hand is St George, the financing bank, only takes payouts via Bpay or direct deposit, claiming they take between 2 and 5 days to clear.

It would be difficult for a buyer to fork over a large amount of cash and not be able to drive away with the car. Even if they were allowed to take the car there will always be the question of title. And that is beside the fact that the seller will be worried the buyer hasn't transferred at all or has tried to reverse it.

By and large people are honest and will do the right thing. But that small minority and stack of bad stories means you generally have to treat everyone like they are going to rip you off, if only to protect yourself.

jstanovic · 14-10-2021, 06:34 PM

Go back to the dealer with a counter offer of what the private buyer offered. If they say yes, it's an easy done deal.

Dr Smith · 14-10-2021, 07:18 PM

Quote:

Originally Posted by arm79

I think the issue at hand is St George, the financing bank, only takes payouts via Bpay or direct deposit, claiming they take between 2 and 5 days to clear.

It would be difficult for a buyer to fork over a large amount of cash and not be able to drive away with the car. Even if they were allowed to take the car there will always be the question of title. And that is beside the fact that the seller will be worried the buyer hasn't transferred at all or has tried to reverse it.

By and large people are honest and will do the right thing. But that small minority and stack of bad stories means you generally have to treat everyone like they are going to rip you off, if only to protect yourself.

I just looked back at my records and although in my case Bank of Melbourne, which is still under Westpac like St George, when I sold my van, the dealer made an eft to St George and the balance to me and both funds appeared within the St George client portal and my own ANZ account within a matter of 30 mins.

Edit: St Goerge and BoM use the same login portal for vehicle/equip finance

prydey · 14-10-2021, 08:09 PM

Pay out the loan on the car with a personal loan. Sell car. Pay out personal loan.

arm79 · 15-10-2021, 12:13 AM

Quote:

Originally Posted by Dr Smith

the dealer made an eft to St George and the balance to me and both funds appeared within the St George client portal and my own ANZ account within a matter of 30 mins

Before us general public plebs got access to instant transfers via the Osko platform, businesses could arrange with their banks to instant or very short time transfers. What would take you or me 2 to 5 days, businesses could do in a couple of hours if they wanted.

5 and more years ago our family account could transfer money from his trust account to my account usually within 30 mins to an hour of pressing send. He had some arrangement that any transfer he did within a revolving 2 hour window would be completed within that 2 hour window. Alot of his clients had access to this with their banks.

It's how I got paid back 15/20 years ago by my work, they would process the pays from their ANZ account before 6pm on Monday and I'd have the money in my Commonwealth account between midnights and 2 am the following day.

I imagine businesses still have this available to them and they still use it.

Citroënbender · 18-10-2021, 10:54 PM

Did this work out OK, or is it still going?

BENT_8 · 19-10-2021, 08:04 AM

Quote:

Originally Posted by Citroënbender

Did this work out OK, or is it still going?

So in the end she sold it to the dealer as it wasnt worth the hassle for an extra few dollars, dealer bought it on the spot and she had the balance after loan settlement in her bank by 9.30am following morning.

Problem now is it had premium rego plates on it which had to be removed as she owns them and so she needs to go to service SA to have standard plates allocated, both times shes been there after work theyve turned her away saying theyve reached their customer limit for the day due to closing time soon after.