gumtree seller hasn't settled with bank yet

rossco_007

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Joined
Jul 23, 2010
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13
Hi,

I've found a bike I want to buy on Gumtree. The owner says:
  • I pay him and take the bike
  • He settles with the bank using the money I paid him
  • He then receives registration papers etc a week or so later, sorts all that and gives me the documentation
  • I then complete transfer of vehicle myself

I know the seller is most likely legit but I'm worried about the fact that he hasn't settled his financing yet. If I pay him he could take the cash, stop his payments and the bank will collect the bike from me.

Does anyone know how I'm supposed to deal with a situation like this? He's agreed to sign a sale agreement specifying the bike model etc but a friend told me that didn't mean much.

thanks for any help.
 

RichardG

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Ask the seller you want to see proof what is outstanding on the banks letterheads and u go directly with him to the bank to go settle what is outstanding that way you've evidence and CCTV footage in the bank. If the seller refuses then something is fishy
 

Archer

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Then it's not his bike to sell. Sounds dodge...
So about 50% of vehicle sales are dodge simply because the person is selling the vehicle before having made all 60 (or maybe 72) of his payments? In other words, trying to sell at maybe 2 or 3 years in? :rolleyes:
 

RichardG

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Then it's not his bike to sell. Sounds dodge...
I don't trust people on gumtree after there have been numerous reports about stolen vehicles being advertised.

If he outright refuses then you know something is fishy. Then you pay him the difference but liaise with someone at the banking institute surely they can get the paperwork ready if you can furnish them with a bank guaranteed cheque
 

rossco_007

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Jul 23, 2010
Messages
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It seems reasonable that if he got it financed and he hasn't completed the financing that he can still sell the bike.
 

Archer

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Ask the seller you want to see proof what is outstanding on the banks letterheads and u go directly with him to the bank to go settle what is outstanding that way you've evidence and CCTV footage in the bank. If the seller refuses then something is fishy
Or you as the buyer settle the amount outstanding at the bank yourself. Pay the balance to the seller. So now you have the vehicle, and the debt is clear.
 

Hephaestus

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If he still owes money, he can't sell the bike. The bike belongs to the Bank, the papers are on their name.
Best would be to buy from a dealer
 

RichardG

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It seems reasonable that if he got it financed and he hasn't completed the financing that he can still sell the bike.
He cannot sell you the bike cos technically it still belongs to the bank. Imagine you handover your hard earned cash and discover he owes every Tom dick and Harry.. surely once you settle with the bank you able to receive the papers the same day
 

Archer

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If he still owes money, he can't sell the bike. The bike belongs to the Bank, the papers are on their name.
Best would be to buy from a dealer
If you still owe money on your house, you can't sell it, it belongs to the bank... And yet I see plenty of houses getting sold?
 

rossco_007

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Jul 23, 2010
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Ask the seller you want to see proof what is outstanding on the banks letterheads and u go directly with him to the bank to go settle what is outstanding that way you've evidence and CCTV footage in the bank. If the seller refuses then something is fishy
good advice. He's 2 hours drive away though so on a Saturday by the time I've viewed the bike this might be difficult. I'll ask for his details with the bank and enquire with them on how to proceed. Maybe they have a process to deal with stuff like this but I'm assuming there will be all kinds of red tape.
 

Archer

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He cannot sell you the bike cos technically it still belongs to the bank. Imagine you handover your hard earned cash and discover he owes every Tom dick and Harry.. surely once you settle with the bank you able to receive the papers the same day
Settle... bank... directly...
This isn't rocket science people

edit: you could get a middleman involved (like a dealer) who can facilitate all this for a fee, around R2-3k iirc.
 
Last edited:

maumau

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good advice. He's 2 hours drive away though so on a Saturday by the time I've viewed the bike this might be difficult. I'll ask for his details with the bank and enquire with them on how to proceed. Maybe they have a process to deal with stuff like this but I'm assuming there will be all kinds of red tape.
Information on the seller should be confidential, but yes maybe they have a process in place.
 

Jewpacabra

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Feb 13, 2013
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So about 50% of vehicle sales are dodge simply because the person is selling the vehicle before having made all 60 (or maybe 72) of his payments? In other words, trying to sell at maybe 2 or 3 years in? :rolleyes:
Not sure if 50% of all sales are private but when trading in at a dealer that is fine. Private sales are different though as the vehicle will still belong to the finance house.
 

The_Traveller

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Ask for the copy of the finance contract, the copy of natis and his ID, but the risks are high so move on ...
 

rtzouves

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If you still owe money on your house, you can't sell it, it belongs to the bank... And yet I see plenty of houses getting sold?
Yes, but at no point during the selling process does the "owner" have control of the funds. The payment is made to a third party attorney or trust and they must legally first settle the value outstanding on a bond before it be comes your property and you become entitled to the balance of the funds.

* apologies, I missed the quote and see you were replying to a rather short worded post that your response perfectly fits :)
 
Last edited:

rtzouves

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Jun 3, 2008
Messages
511
Hi,

I've found a bike I want to buy on Gumtree. The owner says:
  • I pay him and take the bike
  • He settles with the bank using the money I paid him
  • He then receives registration papers etc a week or so later, sorts all that and gives me the documentation
  • I then complete transfer of vehicle myself

I know the seller is most likely legit but I'm worried about the fact that he hasn't settled his financing yet. If I pay him he could take the cash, stop his payments and the bank will collect the bike from me.

Does anyone know how I'm supposed to deal with a situation like this? He's agreed to sign a sale agreement specifying the bike model etc but a friend told me that didn't mean much.

thanks for any help.
Quite simple. Ask the seller to get a settlement letter for the vehicle from the bank with a specified date and tell him/her you will pay the settlement amount directly to his/her title holder bank and the balance to him/her on the specified settlement date (contract of sale should be signed prior, with this specified as the payment arrangement). Failing this the bike does not in fact belong to the seller and unless they are an extremely trustworthy party (family/long standing mate you can rely on) they are likely trying to ..... you.

Make sure you take possession of the vehicle on payment IMO. Don't wait for all transfer paperwork to go through.
 
Last edited:

Pilgrim

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Jul 5, 2006
Messages
3,090
If you still owe money on your house, you can't sell it, it belongs to the bank... And yet I see plenty of houses getting sold?
That is why lawyers are involved, they get proof of finance from the buyer and ensure that the house gets paid and transferred...
 

Fazda

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:mad: Bugger and BLAST! :mad: I have just written a whole long answer and touched my Alt key and lost it! :mad:

Bottom line - walk away from the deal and buy through a legit dealer - there are far too many opportunities for you to lose out on this one.
 

Pitbull

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Ask the seller you want to see proof what is outstanding on the banks letterheads and u go directly with him to the bank to go settle what is outstanding that way you've evidence and CCTV footage in the bank. If the seller refuses then something is fishy
This ^^.

Get a settlement letter from the bank. The settlement letter will have the details like the account number on it. Settle the bank directly and pay him the difference if any. However, get a contract drawn up before settling it. So if he decides to duck when the bike is settled, you take him to court. Maybe get a 3rd party involved like a lawyer. They don't charge too much for these type of transactions. I'd rather pay an extra R 2k to know the deal is safe.
 
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