Advice needed on car sale.

xr8 007 · 12-11-2007, 10:53 AM

Hello to all,

Just a quick question, did a search but no luck. I went to a dealership and road tested a XR8 boss and totally fell in love with the grunt. The only problem is, they will only give me 8gs for a trade in on my 2001 XR and I’m still paying the car off via finance. They said that’s not a problem we can just extend it.

But my question is, if I’m still paying the car off, can I sell it privately or is my only option to trade it in??

Thanks a bunch..

3vXT · 12-11-2007, 11:07 AM

Do you owe more than 8 thousand on it?

prydey · 12-11-2007, 11:14 AM

you can still sell your car privately but the money you get for it must be able to wipe out the finance, even if it means putting up more of your own.

i'm assuming its a xr6. Private sale should net you more than 8k. prolly closer to at least 10k.

I'd sell it privately first and then purchase new car.

The other thing you can do is get a personal loan and pay out the car. the car will then not be encumbered and you can pay out a personal loan in your own good time.

xr8 007 · 12-11-2007, 11:32 AM

yeah the debt is well under 6g's

prydey · 12-11-2007, 12:48 PM

the fact that there is money owing on the car may put off some people. it just means that the buyer would make one cheque to the financial institution for the amount owing and the balance to you.

otherwise like i mentioned earlier, get a personal loan and pay out the finance and that way the car is not encumbered in any way. you can then sell it and buy a new car and pay out the loan in your own good time.

Rodp · 12-11-2007, 04:15 PM

Maybe I'm just lazy but I tend to trade in my vehicles (particularly ones I still owe a finance company on) since it's just a whole lot less of a hassle. If you can get 8gs for it, the dealers accountant should be able to take care of the particulars and pay off the required parties and credit you the difference.

One of my mates is trying to sell an XR6T privately and having all sorts of spam calls from wholesalers hammering him with SMS's and phone calls, tyre kickers rocking up for a test drive and trying to knock down the (reasonable) price because a 4 year old car has a few marks on the duco.

Maybe shop around and see if you can get a better deal on either your trade or knock a few dollars off the price of a car at other dealers. XR8's aren't hard to find.

jaydee · 12-11-2007, 10:00 PM

Prospective buyers will do a REVs check and get put off unless you tell them up front or as someone suggested pay out the loan.
If you do it the car yard way you can guarentee you're getting screwed everyway, on the trade, on the purchase and on the finance.
Good luck.

Powdered Toast Man · 13-11-2007, 10:14 AM

I wanna buy a privately sold car but my current car is still under finance. It is actually looking like it's gonna be a real pain in the butt. Might have to shelve the plans and keep it until it's payed off. Bugger!

Just curious, but if I was to sell to a car yard do all they offer is the equivalent of the trade in price? Just with the rate BAs are selling even if I was to put it on the market it would take a year to sell it anyway.

Sorry about the thread hijack.

LeadFoot81 · 13-11-2007, 10:20 AM

Its best to sell the car privately (especially if its in good nick) as you'll ge the most money for it.

You need to provide the buyer with a letter from the finance company telling them exactly how much is owing, and write up a contract for the two of you saying who pays what out. You pay the 'remainder' of the finance first, then the seller pays the rest. Teh finance company can email you pdf letters, while the buyer can ring the Fianance company at any time to check the status of money owed.

It can be a major pain, moreso for the buyer, but trade in on AUs (or any car for that matter) just isnt that crash hot.

Pinch · 13-11-2007, 01:07 PM

I have sold 3 cars privately that have been under finance. Never a problem. As prydey said, you get 1 bank cheque made out to the finance company for the payout, and one for the balance (or cash). This protects the buyer as the bank cheque can only be cashed by the finance company, removing the encumberance.

I was upfront the whole time about it. Sold them on carsales.com.au and said they were encumbered in the car details, and the way it would be paid out and a printout of payout required. I also provided the REVS certificate and a info sheet from the fair trading tribunal about buying encumbered cars. None of the buyers were concerned in the slightest.