Cars & Motorbikes Buying a car that has finance on it

Been searching for a particular car with a specific set of options for a while now, finally found one up in Brisbane which I want to buy and have agreed on a price (pending the car being in the condition described) with the owner but have hit a little snag because the car is under finance and I'm not sure how I should proceed.
He has a payout figure from his finance company which I can pay and then pay him the balance in cash but there is a delay in me paying and the finance company releasing the car.
I have requested that if he gives me proof from the finance company that once money is payed off the loan it cant be redrawn I can then go up on Saturday, pay the payout figure using B-pay and take the car, once the money clears on Monday/Tuesday the finance company will release there encumbrance on the car however his finance company has said he cant release the car to me until the money clears on there system, my problem is I don't want to hang around until Tuesday waiting for the funds to clear and what's to stop him skipping town, or damaging the car in the mean time.
The finance company's solution was for me to pay the finance out today so when I get up there on Saturday I can take the car but if I decide the car is not what I want (isn't as described basically) then they will refund the money, I foresee heaps of things that can go wrong with this idea.
The best option would be to meet in the office of the finance company and for me to pay it out in person with cash if needs be but they have no office in Brisbane, only in Melbourne apparently so that options out.
So has anyone bought an encumbered car before and how did you protect your interests in the purchase?

 

Have done it before, and as per your last lines.
I looked at the car, he drove me to the finaciers office, I handed over a bank cheque, handed the registered owner the balance in cash, and i dropped him off at the train station.

As this isnt an option for you, providing all your correspondence with the financier have been in an email and they guarantee to refund you, I'd suggest paying out the finance subject to inspection and transfer of ownership..

 

Dont forget that it is well worth the small amount of money to do a REV's check before commiting to anything

 

For my mind it's just a car, and I wouldn't risk my own $ if I couldn't be assured that the finance company won't come after me for more $.

There's no way I'd pay out his loan before even seeing the vehicle!!!! Madness!!

Best case, if you really want it (I personally wouldn't do this).. get written confirmation directly from the finance company for the payout amount as of x date. Get a bank cheque made out for the same amount. Give owner cash balance, and get him to watch you posting the bank cheque in a 'registered mail' envelope to the finance company.

 

Can you transfer the loan to your name and just take over the repayments?

 

Thanks for your input guys,

That's how I found out about the finance, will do another one the day I pick the car up if the purchase goes through

 

That was my first thought we he told me.

I could maybe do that, although I'm not sure I'm keen to get too tied up with what seems like a shady finance company over a car I want to pay cash for anyway.

 

Yes you would have to check out the terms and conditions of the loan.

But at least you will know the finance company won't repossess the car.

May be you can pay the loan off, say in a months time without penalty?

 

And when I saw that @datto had posted i was sure it was to offer up an old Datsun 120Y
(it'd be a collectable in another 20yrs)

 

Beware of vehicle scams!!

Have you actually seen the car? Sighted all the original paperwork?

I would proceed with extreme caution.
Marg

 

Looks like someone else was willing to take the risk I wasn't, the car is now sold, I'll have to keep looking.