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Blog   »   September 2014   »   Buying From Someone Who Is Not A Dealer

Buying From Someone Who Is Not A Dealer

When buying something from anyone other than a dealer or recognised supplier, the finance industry calls this type of transaction a “Private Sale”.

  • Things to be aware of

When you buy from anyone that is not a dealer, there is no insurance or governing body to ensure the vendor (seller) is doing the right thing. There is also no warranty or recourse if anything should go wrong, but you generally get a better price.

  • Complete a PPSR Search

Have you done a PPSR search to confirm the goods aren’t reported stolen or have money owing?

Having money owing isn’t a bad thing as it actually makes it easier to verify who currently owns the goods, and ensures the right person is paid to allow title (ownership) of the goods to pass to you.

  • Insurance Write-Offs

A PPSR Search may also reveal if the goods have previously been written off. An “insurance write off” is a real issue for some private sales.  What this means is that the goods were previously written off but the vendor (seller) has bought them back from the insurer and repaired them. The “write off” could have been caused by a collision, being immersed in flood water, or maybe even a roll over.  Each one of these common causes can have distinct and long lasting problems. Remember, once goods have been “written off” by an insurance company they can’t be re-insured again and most lenders won’t finance them.

  • Lender Requirements

When financing the purchase of goods from a private sale, there are a number of items the lender will require prior to making payment to the vendor:

  • Invoice signed by the vendor noting the full description of the goods including Year, Make, and Model, and any relevant serial/VIN/Engine numbers
  • Copy of the current Registration Papers (if applicable)
  • Proof of ownership (eg. A copy of the Invoice from when the vendor bought the goods, or a statutory declaration signed by the vendor confirming they are the current owners)
  • Payout Letter confirming the payout amount if there is money currently owing on the goods
  • Copy of the vendor’s deposit slip or the top of a bank statement to verify their bank details and ensure the money is paid to the correct person
  • Copy of the vendor’s drivers licence to verify their identity and confirm they are the owner and authorised to sell the goods

In addition to the above, the goods will have to be inspected by one of the lender’s representatives. This is just to confirm all the serial numbers / identifiers on the goods match the Invoice and Registration Papers. This inspection is not to confirm the mechanical worthiness of the goods, so you may want to consider arranging a mechanical/roadworthy/safety inspection if in doubt about their condition.

All of this may appear to be a lot of hassle for a car, truck or equipment purchase, but a little pain in the beginning may save real dramas and financial loss in the end.

  • Benefits of using a Finance Broker

Using Hunter Business Finance to attend to your private sale purchase can save you money on the purchase plus we will deal direct with the vendor to obtain any necessary lender requirements. We can prepare the Invoice for the vendor to sign, plus we’re authorised to complete the inspection on behalf of the lender which will further save you on time and money.

Call us to discuss your private purchase first before you part with your money, and we will ensure you obtain a good deal with clear title so that nothing unforseen mars your new purchase.

Posted: 8/09/2014 9:54:43 AM by Hunter Business Finance | with 0 comments


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