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Johannesburg - Many people find it an attractive option to sell used cars privately.
The most important reason is that private sellers can get up to 30% more for their vehicles than trading them in at a dealership.
Marcel de Klerk, managing executive at Absa Vehicle & Asset Finance, said that in private deals the biggest problem is the condition of the vehicle being purchased and the payment process.
The buyer in a private transaction must satisfy himself about the condition of the car and make sure that it is not a stolen vehicle by carefully checking the registration document as well as the licence.
If a stolen vehicle is bought, the buyer has no rights. But the buyer can claim damages from the seller if the car is not in the condition it was purported to be.
Many private sellers have been the victims of fraud because of non-payment by the buyer. In many cases where cheques have been accepted for the vehicle the seller realises only a couple of days later that funds are not available in the account.
Financiers of vehicles bought and sold in private transactions have all instituted measures to protect both buyer and seller from the risks and to facilitate the process.
Absa has also entered into formal agreements with about 100 accredited dealers to finance private transactions. These dealers inspect the vehicle and do any necessary repairs.
If there is no buyer, the vehicle will be offered as a private transaction and be advertised on a website. Should there be a buyer, the dealer will obtain the normal credit approval and arrange finance if necessary.
The rules that apply to qualifying for finance in a private transaction are the same as for any other financing transaction.
The customer must be creditworthy and pay a deposit. In most cases repayment periods are limited to 60 months, although a loan period of 72 months will be considered for vehicles under two years old.
- Sake24.com
