So you have decided to or are considering purchasing equipment from a private seller. This can often be a great way to purchase used equipment and sometimes even mean getting a better price compared to when buying from a dealer.
The good news too is that it’s also possible to finance equipment being sold by a private seller.
There are however, a few additional checks and balances that you should complete when buying from a private seller to ensure that you are covered when exchanging funds. If you decide to use Komrade to pay under finance the following checks will be completed on your behalf making life a little simpler for you.
• Get an inspection or roadworthy completed
Particularly if you are buying sight unseen, it is really important to have someone check over the general condition & confirm the identifiers of the vehicle or equipment & make sure it actually exists! –state wide road side assist may be able to help you with this. If you are not mechanically minded spend the money and get a mechanical inspection as well for peace of mind as it may just save you in the long run!!
• Complete Government Register Checks
Get a copy of the registration papers and go to the government website www.ppsr.com.au and look up the VIN or Serial number. This will tell you if the vehicle has ever been written off, stolen or if it’s still under finance. Unfortunately, written off vehicles or repairable write off’s listed on the WOVR (written off vehicle register) are unable to be financed.
• Ensure the seller is the actual owner of the vehicle
Unfortunately, registration does not prove ownership. What you say? Think about it you could buy a car for your daughter to drive around, register it in her name but she doesn’t legally own it. To avoid being the owner of an asset that has been illegally sold, make sure you ask for a copy of the invoice or sales receipt from when they seller originally purchased the asset to prove ownership. If this is unavailable and the asset is being financed, we generally would ask the seller to sign a statutory declaration of ownership.
• Know your obligations if the asset is currently under finance
This is a big one to consider and one that is often missed. If the asset is still under finance make sure you get the private seller to request a payout letter from their financier and make sure that you as the buyer pays out what is owing on the finance contract first. If there are then further funds owing to the seller to purchase the asset (i.e. the price that the seller is asking is more than what is remaining on the finance contract) you can then pay that directly to the seller.
The reason for doing this is that if you leave it in the seller’s hands to payout any outstanding finance they just might not & this could in turn cause a headache that you don’t need in your life as the asset still may be legally owned by the original financier.
• Ensure there is a match between the name on the bank details and the seller’s name
Alert, alert… it’s called fraud people! I know, I know everyone seems trusting and fraud is not as common in this country however, ensuring that the sellers name or business name matches the bank details that you have been given is the only way to ensure that your hard earned money is going to the right person or business.
Hopefully these 5 tips have helped you to understand what you need to consider when buying from a private seller.
If you have any questions about my tips above or would like to find out more about financing your next purchase from a private seller, you can contact me on 0431 177 605 or via the contact us form.