Buying a used vehicle often has its risks, which is why buyers are recommended doing their research before their purchase so that they make an informed decision. One such scenario is buying an Encumbered Vehicle.
For many people, finding out that a vehicle is encumbered is enough to put them off from buying it, which is understandable and generally the safer option.
But if you really want the vehicle – maybe it’s a rare collector’s item or a dream car – Melbourne’s leading Car Removal service, Mega Car Wreckers has got the lowdown to help you with your decision.
An encumbered vehicle is a vehicle that is part of some sort of loan or financing option. This could mean that the car itself is collateral or a loan has been taken out to buy the car and it hasn’t been fully paid off yet. Essentially, it’s where the vehicle is involved with money that is owed to a person or institution.
The short answer is yes. Just because the vehicle hasn’t been paid off yet or is involved in a loan doesn’t make it illegal to sell. Technically, you can even sell the car to pay off the remaining money owed in the loan.
However, the seller of an encumbered vehicle must declare it. If they don’t, they are committing fraud and risk all sorts of legal repercussions, including getting sued.
The most major risk of buying an encumbered car is that it can be taken away from you for not paying the outstanding loan. If you were aware of its encumbered status, there’s really nothing you can do – the previous owner will not have to refund you, nor can you take legal action against them.
The first thing to do is ask the owner of the vehicle, but on the off chance that they are lying, it’s recommended that you do a rev check online. Simply look up ‘rev check’ followed by your state online and there are free websites to do this. You’ll have to submit the vehicle’s registration or VIN number.
Do you own a damaged, old or written-off vehicle? Mega Car Wreckers will gladly collect it from you with a professional Free Car Removal Melbourne service and even pay you on the spot with an Instant Cash for Cars payment. We provide a same day Car Collection service and can be with you at a moment’s notice. If you own an unwanted car that you want to get rid of ASAP, don’t hesitate to call Mega Car Wreckers today.
Contact Mega Car Wreckers Melbourne today at 0413 927 850 or get a quote online
