buying an encumbered car in nsw

Huh, like what, a cadaver in the trunk ??

I had a friend that found the car he wanted to buy was owing money to a finance company.

What he did was contact the finance company, and they all agreed that he would provide a cheque to the finance company for the amount owed, and another to the girl selling the car for the rest. I think he even handed them over at the same time and place to make sure it was all legit.

It worked out fine, although you could almost guarantee that if he hadn't done it this way, the girl might not have paid out the finance company.

Ask the finance company to provide a Payout Letter for the facility. This will have the amount owing on the vehicle and the date to which it is valid. The payout figure will reduce after this date as the next payment will (should) have been paid.

Clear title to the vehicle will be available when payout figure has been paid in full and funds cleared.

It should also have details as to how the payment can be received ie deposited over the counter at relevant bank.

I would be meeting the the current owner of the vehicle at the bank and depositing the Bank Cheque into the account and obtaining copy of the deposit slip. Bank cheque for the balance to the owner. If you are looking to obtain to finance for the vehicle yourself by way of secured personal loan or HP check with your financier as they will have their own Private Sale policy and procedures to follow.

Cheers.

Come on mate. You need to educate yourself and not seek forum advice on such mundane crap.