Buying a car with finance remaining

You’ve found the perfect car on carsales and are getting down to the purchase but you discover that the seller still has a finance amount remaining on the car. What should you do next? We’ve outlined some key things to consider before moving ahead with your potential purchase. 


What do I do if the car I am interested in is under finance? 

You will need to talk to the seller about how they plan on going about paying off their finance. Once you have made a deal you are both happy with, you can proceed with the sale. Please see our Selling a Car Under Finance article for more information on what sellers should do in these circumstances. 


What if I buy a car with an outstanding finance amount without checking? 

If you buy a car with an outstanding finance amount and the seller did not disclose this information to you at the time of purchase, then you will automatically be responsible for the debt and outstanding payments of the finance contract. You will also be at risk of losing the car if you cannot afford the remaining repayments.  

We encourage all buyers to purchase FACTS+ before buying any used car to check the finance status 


Why is FACTS+ important? 

FACTS+ will give you a comprehensive assessment of most details you need to know about the used car’s history. It will show whether the car you are interested in buying has any finance secured or owing, and by which finance provider. It will also show whether the car has ever been stolen, had an accident or written off. 


The seller is denying that there is any finance remaining on the car 

If the seller hasn't advised you that there is finance or is denying that there is an outstanding amount remaining on the car where in fact there is, they are either purposefully defrauding you or simply unaware of the finance. In either case, it's best to walk away from this deal. 



Related articles: 

Selling a car under finance 
How do I check the history of a car? 

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