I need some advice! I’m in the process of negotiating a used Toyota, but I’ve just discovered that it’s still under finance. I have two options: either the seller can pay off the loan directly or I can settle the loan myself.
[UPDATE AT THE END]
Hey everyone,
I’m really keen on getting this car; it’s in great shape and reasonably priced. However, while doing a PPSR check, I found out that it’s still under finance.
Here’s what the seller informed me:
“The car is financed through Toyota. Once I receive your payment, I can pay off the remaining loan (which can be done on the same day) and provide you with the proof of payment. Alternatively, I can give you the payout quote, and then you can pay the remaining amount we agreed on. I’ve done this process before with a motorbike, and it’s pretty straightforward without needing to remove any registration beforehand.”
Additionally, they mentioned, “I have a guaranteed future value loan on the car, and I believe there’s about $25,000 left on it. I can obtain a payout quote and share it with you.”
Could you all please let me know what you think I should do?
UPDATE:
I’ve decided to walk away from the deal. I only got $50 back from the $100 security bond I paid, as they claimed I wasted their time. I figured it was my fault for not checking the PPSR before making a commitment, so I accepted the partial refund.
Fortunately, I checked in advance, so I feel like I dodged a bullet. The seller seemed sincere, but the lack of disclosure about the finance situation was definitely a red flag.
It’s good to hear that you checked the PPSR and noticed the financing issue before moving forward with the purchase. It’s definitely wise to be cautious when dealing with a used car that still has outstanding finance, as it can lead to complications down the line.
While the seller might have had good intentions, the fact that they didn’t disclose the outstanding loan raises some concerns. It’s essential to have clarity and transparency in any transaction, especially with high-value items like cars. Walking away from the deal seems like the right choice considering the circumstances; protecting yourself from potential financial headaches is always the priority.
If you’re still interested in finding a similar car, keep looking and ensure that any future seller discloses all relevant information upfront, including any existing financing. This will help you avoid any similar situations in the future. Good luck with your search!