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Hi, I have two question about buying a second hand vehicle. Fristly, I am thinking of purchase a vehicle privately and the owner told me he is leasing the vehicle and would need to clear the payments to the lease company. My question is would that be a problem like money owning on a vehicle if he didn't pay off whatever he owes to the lease company. Secondly, I have also looked at a vehicle in Christchurch thro a LMVD dealer. I am a little bit hesistate to go ahead since I won't be able to physically view the vehicle and can only rely AA inspection. Also, the vehicle has to ship to Auckland and what protection do I have if something goes wrong. For example damage to a vehicle or mechanic issues later. Look forward to your reply. Thanks David.
Hi there,
I'm pretty sure if the person is leasing the vehicle, they don't actually own it and therefore don't have clear title which is a requirement in order to be able to sell a vehicle.
The contract would need to be between the lease company (as the legal owner of the vehicle) and you. In short, you would need to make sure the lease company were happy for the vehicle to be sold, and that the lease company received the money required.
An AA History check will be able to tell you if there is finance registered against the vehicle. http://www.aa.co.nz/cars/buy-sell/car-history-checks-and-reports/
If you buy a vehicle from a trader, you are protected by the CGA (consumer guarantees act) which outlines certain obligations and remedies available. However if you purchase the vehicle in a different town, it will be your responsibility in most cases to get the vehicle back to the seller in order to put minor defects right. https://www.consumerprotection.govt.nz/get-guidance/cars-and-motoring/
Hi,
Thank you for the prompt reply.
So basically after agree to the selling price with the seller and satisfy with the mechanic inspection, I should deal with the lease company directly in settle the payment and the transfer of ownership? Thanks.
Hi there,
You would want to speak with the lease company first and make sure the vehicle can actually be sold in the first place. People leasing cars usually don't own the vehicle nor can they sell it.
Hi,
I might not want to go ahead with this private sale then. Want to keep it simple. Thanks for the advice though. As for buying a car from out of town thro a LMVD, is there anything that I need to watch out for? Is it safe to buy vehicle out of town and have it shipped to you? Thanks.
Hi,
According to this link https://www.nzta.govt.nz/vehicles/how-the-motor-vehicle-register-affects-you/your-responsibilities-as-the-registered-person/ , he would be the registered person of the vehicle but not the legal owner. Guess I would need to talk to the lease company if I wish to go ahead with the purchase of this vehicle.
Make sure you can get the vehicle pre purchase inspected, then you will actually know the vehicle exists and in a reasonable condition to buy.
People buy out of town all the time, but the thing to remember is that it can become tricky if you have problems that the dealer should remedy. They may request that you get the car towed back to them in order to get the vehicle looked at.
If I do purchase this particular vehicle, I will get an AA pre-inspection. Again, you don't think there will be any issues for the dealer to ship the vehicle to Auckland. Thanks.