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Private Car Buying

Posted on January 27th, 2009

Unfortunately there are many private vehicle buyers, who are unaware that they really should check any vehicle they may intend purchasing to ensure it does not have a registered security interest.

If they purchase the vehicle without completing a vehicle check, it may well cost them thousands of dollars and no vehicle to show for it. These cars are called “lemons”.

Our research shows that at least 52% of the vehicles we are repossessing for finance companies have been on-sold to a new buyer who have obviously not checked to see if they are buying a ‘lemon’.

Recently we tracked down and repossessed a vehicle that had been sold to the third owner since the vehicle was registered with a security interest as collateral for a loan.

The previous owner had learnt that the debtor, who was living in Australia, had defaulted and the car was sought for repossession. It was quickly on-sold to the current owner who also had not done any form of check.

The agent had to explain to the new owner that the vehicle was sought by the finance company for a loan in default - as it was being towed away. The agent said that it has become a common occurrence and he is continually surprised that people have been able to sell vehicles that they have used as a security for a loan.

A cruel example surfaced when two long time girl friends swapped cars. One of the girls had her vehicle registered for a loan. She swapped the vehicle for one that did not have any hooks. She then sold that vehicle, moved to Australia and stopped the repayments to her loan on the swapped car. The first the other lady became aware of the finance agreement was when the car was being repossessed. Sadly, the very afternoon the car was repossessed, she had just farewelled her friend returning to Australia  - after visiting and enjoying her hospitality for a week.

There is no reason why potential buyers need risk buying a lemon. For as little as $20 and 10 seconds of their time they can access excellent web sites that will provide crucial information including whether the car is stolen; security interest (money owing); adverse accident history; ownership history; odometer history, deregistering of a vehicle, new plates, last WOF date and if it  passed or failed, and much more.

Recommended sites are:

www.aalemoncheck.co.nz
www.vir.co.nz
www.autofinder.co.nz

If you do not have internet access please call us and we can put you in touch with the independent experts on vehicle purchases.

Doug Abraham

douga@abrahamconsultants.co.nz

Filed under Reposessions |