# buying a car



## SBP (Jan 4, 2010)

If I bought a car privately and the previous owner had debt on it, would the finance company be allowed to come and take it off me if the previous owner defaulted?


Or is the debt attached to the previous owner and not the car?


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## Gavtek (Aug 23, 2009)

I think I'm right in saying that the bank is the legal owner of the car until the finance is paid in full.


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## SBP (Jan 4, 2010)

Wouldn't that depend on whether it was bought on car finance, or if previous just took out a loan for whatever purpose and used funds to buy a car, then loan not actually attached to it?
Or doesn't it matter?


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## oh! (Feb 24, 2010)

well, if the car is the collateral...default means re-possession of the car, if the car is not the collateral then it is safe.


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## SBP (Jan 4, 2010)

Cheers, same as Uk then


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## Fatenhappy (Jun 23, 2009)

SBP said:


> If I bought a car privately and the previous owner had debt on it, would the finance company be allowed to come and take it off me if the previous owner defaulted?
> 
> 
> Or is the debt attached to the previous owner and not the car?


You bet they would .... its still encumbered and thats it !

Goes even deeper than that .....

One of the work collegues had bought a car .....

The previous owner had traffic fines to the point of one of those txts that says front up or the car will get impounded for a month.

Old mate from work bought the car with this outstanding and Dubais finest were still going to impound the car even though he was now the new owner ....

Many phone calls later and "what if I bring in another car and leave it with you for a month " _(to serve the supposed sentence) _... you guessed it .... Yes that will be alright or words to that effect ..... just like the car had committed a crime .... DERRRRR !


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## SBP (Jan 4, 2010)

How can check to see if a car has any outstanding finance on it? In UK you can HPI check and it shows up.


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## Maz25 (Jul 6, 2008)

In regards to buying a second-hand car, you would need to take over the loan from the previous owner. Effectively, once your car loan is approved, you issue a cheque to the previous owner, which he takes to the bank to pay off the existing loan. Once the cheque clears, the bank issues an NOC, which you take to RTA, allowing ownership to be transferred to you. The previous owner will need to clear all their fines before RTA will allow re-registration of the car in your name. The vehicle will also need to go for passing to ensure that it is road worthy as well.

I may be wrong but since you need an NOC from the bank to be able to re-register the car, then that would show up as soon as you go RTA to deal with registration. Before then, you will most likely have to count on the honesty of the owner to divulge this information to you. You can assume that for any car than is less than 3-5 years old, there would most certainly be a car loan on it.
Why not buy the car from an authorised dealer? It would mean that you get warranty in the event that something went wrong and also you have the assurance that there is no loan or fines on the car as these would have been taken care of at the time of purchase of the vehicle by the dealer.


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## SBP (Jan 4, 2010)

thanks Maz, whilst buying from a garage does offer warranty benefits etc, buying privately is cheaper....well if everything is above board that is!!!


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## Fatenhappy (Jun 23, 2009)

SBP said:


> If I bought a car privately and the previous owner had debt on it, would the finance company be allowed to come and take it off me if the previous owner defaulted?
> 
> 
> Or is the debt attached to the previous owner and not the car?




Short answer ... the debt stays with the car. Its the same pretty much world wide. You buy an indebted car and they'll come and reposes the car until the outstanding balance is paid + all of their charges etc!! ...  ..


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## Sparkysair (Jul 16, 2008)

I've done a bit of digging in to this as I'm trying to sell my car which is financed through HSBC. I spoke to the bank and they gave me the same info as Maz25's post. Additionally, on the registration card it apparently states whether or not the car is 'mortgaged' but it's in Arabic.


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## SBP (Jan 4, 2010)

Sparkysair said:


> I've done a bit of digging in to this as I'm trying to sell my car which is financed through HSBC. I spoke to the bank and they gave me the same info as Maz25's post. Additionally, on the registration card it apparently states whether or not the car is 'mortgaged' but it's in Arabic.


What car is it??


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## SBP (Jan 4, 2010)

Fatenhappy said:


> Short answer ... the debt stays with the car. Its the same pretty much world wide. You buy an indebted car and they'll come and reposes the car until the outstanding balance is paid + all of their charges etc!! ...  ..


Hey F, you been on the grog?? you had already answered


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## Fatenhappy (Jun 23, 2009)

SBP said:


> Hey F, you been on the grog?? you had already answered


Hey SBP .... Just saw that after the reply ... guess that rates it right up there with the old saying .... #ick Head ...  ..


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## stewart (Jun 21, 2009)

SBP said:


> Wouldn't that depend on whether it was bought on car finance, or if previous just took out a loan for whatever purpose and used funds to buy a car, then loan not actually attached to it?
> Or doesn't it matter?


Ther only loan for a car over here is a car loan, as I found out.
In aus we have personal loans which is a general loan for anything basicaly.
Banks have personal loans here but they are different and will not finance a car.
That was my experience with HSBC anyway.


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## stewart (Jun 21, 2009)

Fatenhappy said:


> Hey SBP .... Just saw that after the reply ... guess that rates it right up there with the old saying .... #ick Head ...  ..


I can only but laugh at that comment about yourself cobber :clap2:


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## Maz25 (Jul 6, 2008)

stewart said:


> Ther only loan for a car over here is a car loan, as I found out.
> In aus we have personal loans which is a general loan for anything basicaly.
> Banks have personal loans here but they are different and will not finance a car.
> That was my experience with HSBC anyway.


I think that it depends on who you end up speaking to at the bank. My car loan is with HSBC. The first adviser I spoke to advised that I take out a personal loan (which carries a higher interest rate). He advised that this would allow me to sell off the car (if I so wanted) without having to get the bank's permission as I would have paid cash for the car and it would have been registered in my name. This was more a general enquiry and I hadn't actually bought the car at that point.

The second advisor that I dealt with processed a car loan. The bank was contacted by the dealer directly, who passed on my details to them.

Saying that, I seriously doubt that HSBC would have approved a personal loan for me to purchase a car.


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## Sparkysair (Jul 16, 2008)

SBP said:


> What car is it??


Honda CR-V

PM me for more details


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