Too trusting selling cars!

prydey · 25-08-2010, 05:19 PM

hi all. just need to vent a bit. due to my sloppiness, i've just had the misfortune of a buyer renegging on a deal. i trusted the guy at his word and didn't take a deposit. i'm not sure it would've made a difference though to be honest. i have a bf mk2 egas wagon for sale and he looked at it saturday arvo and agreed to buy it for $14500 (yes cars a bit dearer in s.a.). we have spoken numerous times since, arranging how the changeover would happen. i had money owing on the car so i spoke to the bank about how to go about it. they said that it would be fine for him to just pay me the full amount and for me to go and fix the loan up later. the buyer didn't feel comfortable with this, so instead, i redrew money from the mortgage and paid out the loan. i got home today (we'd arranged to do the payment/pick up at 5:30) only to receive a text saying he was sorry but was no longer buying my car. now i'm left wondering if taking a deposit would've made any difference.

the other frustrating thing is i came accross a focus for the wife that was a good deal so i jumped the gun and put a deposit on it. unfortunately it has now left me in a pickle regarding funds due to the lack of sale. the frustrating thing is, if i didn't redraw from the mortgage i would've still been ok.

oh well. back to the bank we go. 3 steps forward, 2 steps back with the mortgage.

hopefully this is a lesson to all to follow procedures. always take a deposit. unfortunately these days someones 'word' is no longer enough.

luckily i didn't cancel any ads or anything so at least thats still going.

nstg8a · 25-08-2010, 05:25 PM

yeah, its pretty common these days unfortunately. ive had several buyers renege on buying my xf's.

i just say to them unless they give me a non-refundable deposit it stays on the market until i have full payment.

bit sad that you cant take peoples word anymore.

prydey · 25-08-2010, 05:30 PM

it also makes it hard for the honest people (like me) who still stand by their word, because no one believes them anymore.

**98TLS** · 25-08-2010, 05:34 PM

Feel for you mate but lesson learned eh,things are not like they used to be,hope it all works out ok for you.

FPV+fteT3 · 25-08-2010, 05:41 PM

Quote:

Originally Posted by prydey

it also makes it hard for the honest people (like me) who still stand by their word, because no one believes them anymore.

Mate the last car I bought was interstate and 30k I decided to buy it based on other peoples recommendation (from this forum) asked the owner if he wanted a deposit of say 5k his reply was "no if you want it its yours" later that week tranferred all the money into his account, rang to confirm he was paid. Flew to melbourne that saturday saw the car for the first time in the flesh picked up a receipt and the rego papers and drove home. There are still some people with some integrity left whose word is worth something just we are a little less common now days. I now have a friend in melbourne who I have stayed in contact with and has offered me somewhere to stay if I'm in his state providing I bring the blue car back for a visit.

Kryton · 25-08-2010, 05:34 PM

I think the lesson to be learnt from this all is not to spend money you dont have.
As much a PITA it is for you that he withdrew from the sale, it is his choice to do so.
You could have simply made him write a cheque out to the bank for what you owe, and he then gives you the rest of the money - you didnt have to redraw on your mortgage, that was your decision to do so (if he was still buying the car).
Just the same as putting a deposit down on another car before you had been paid for the first one.
Dont count your chickens before the eggs hatch.
I doubt a deposit would have made a difference either, unless it was a couple grand - but no one is going to hand out that sort of money.

prydey · 25-08-2010, 05:45 PM

Quote:

Originally Posted by davway

I think the lesson to be learnt from this all is not to spend money you dont have.
As much a PITA it is for you that he withdrew from the sale, it is his choice to do so.
You could have simply made him write a cheque out to the bank for what you owe, and he then gives you the rest of the money - you didnt have to redraw on your mortgage, that was your decision to do so (if he was still buying the car).
Just the same as putting a deposit down on another car before you had been paid for the first one.
Dont count your chickens before the eggs hatch.
I doubt a deposit would have made a difference either, unless it was a couple grand - but no one is going to hand out that sort of money.

no worries mum!

i hear what you are saying, and yes, all those thoughts crossed my mind, but rather than getting him to make two payments we both decided it was easier to just make one.

also, a good deal came up and i was looking to buy another car anyway so i jumped at it. technically, i'm not spending money i don't have. the money is just tied up in the asset (house)

i was just getting it off my chest.

Yellow_Festiva · 25-08-2010, 05:44 PM

Happens all the time, sad to say.

I have a large house and rent out rooms. The first 6 months was a great learning curve. The amount of people who would 'promise to move in' in x days / weeks was beyond belief.

So you hold a room based on their word, turn away other people who are ready to move in and pay straight away, only to get a txt / call 10 minutes before their arrival with words to the effect of 'sorry mate, found another place / lost job / moved in with the partner / moved out of the state etc etc etc etc etc'.

So after that, a room is available until the bond is in hand or account. I don't give a stuff about anyone else's situation any more as I have lost thousands (and tell this to any prospective house-mates).

In business, your word is seldom good any more.

Prydey, call back any people who called you after the promised sale if possible, hammer the advertising mediums and hopefully it will sell quickly.

If you have further redraw, buy the Focus and hopefully you will be able to pay it back in fast when your wagon sells.

prydey · 25-08-2010, 05:51 PM

Quote:

Originally Posted by Yellow_Festiva

Prydey, call back any people who called you after the promised sale if possible, hammer the advertising mediums and hopefully it will sell quickly.

If you have further redraw, buy the Focus and hopefully you will be able to pay it back in fast when your wagon sells.

done. fired off a couple of emails. offers were lower but i can live with them.

as for my finacial situation. its not a problem. that wasn't really the focus of my rant. i just have to shuffle things around a little differently and bring forward a couple of other decisions. once all the dust settles it will be fine. just to repeat, it wasn't about struggling for cash, if thats the way it came accross, its just the frustration caused by being too trusting and jumping the gun a little (yes davway - counting chickens).

Bobman · 25-08-2010, 06:07 PM

I had to give a refund once due to being too friendly/honest on my brother's car that some Indian students purchased a few years ago.

We sold it a week later without any problems, but even when you sell a car there's always the chance that people will come back, regardless of how honest you are on the ad.

BENT_8 · 25-08-2010, 06:31 PM

That sucks man.

I had a similar episode recently, only i was the buyer and became the victim.

I was looking around for a tidy courier ute when i stumbled across a low k 98 model crew cab with canopy for $5,500 from a marine dealer at Arndale.(thanks for the word of honour Don Morton marine)
Was the bosses ute and used for parts runs etc.

Rang the guy up, he said it was for sale still, went all the way down there, checked it over and offered a deposit.
He says its mine and not to worry about a deposit.
They were fitting a new clutch to it and said id get a call the next day when ready to pick it up.
Next morning i get a call from the bloke, apparently he 'forgot' someone else had looked at it earlier the day before and it was now upto him first, however, if he doesn't want it its mine...

Get stuffed, i dont deal like that. Sure i was pi55ed, but later that night i found a better ute for $1500 less and has proved to be a gem.

Good luck on the sale!

sarrge2001 · 25-08-2010, 09:00 PM

Don't be discouraged mate, there are still some good people out there. I just found a G6E Turbo in Adelaide. Rang and made an offer over the phone subject to seeing it which he accepted (this was on a Thursday).

Had a mate look at it on the Saturday (all OK) and rang back and said yep, no problems. He told me it was in the paper and he had heaps of calls (it was pretty cheap to start with) but told me I had till the Friday to sort it out and didn't need a deposit. I organised finance and flew down, looked at the car on the Tuesday and offered a deposit. Told me not to worry about it.

I signed the finance paperwork on Wednesday and because he deals with Esanda through his company, agreed to let me take the car straight away after Esanda confirmed I had signed the contract.

He even washed it and filled it with petrol!!!

I headed off back to Darwin on the Thursday

THEN......I get a call from Esanda as I hit Coober Pedy. Apparently they had me sign the wrong contract and so wouldn't pay him any money until I signed a new one when I got back to Darwin on the Monday!!!!! (needless to say the seller wasn't happy with them after getting confirmation all was OK and letting me take the car)

I organised with Esanda to call into the ANZ in Alice Springs on the Friday and sign a new contract so he would get his money Saturday (which he did).

The point is, we both stuck to a verbal agreement and all parties ended up happy (eventually)

It's called "your word". It's nice to kow it still means something to some people.

Hang in there!

prydey · 27-08-2010, 04:27 PM

its a funny world. the wagon is gone. the same guy decided he did want it after all. had some story about the company wanting a post 07 vehicle and mine was actually 12/06. not sure if it was a ploy to knock more money off the price but it worked as he got it for 14k in the end. at least its sold.

alls well that ends well i guess.

i couldn't do it for a living. plus i'm far too honest. i always find myself pointing out the defects before they do.

Kryton · 27-08-2010, 04:51 PM

Quote:

Originally Posted by prydey

i couldn't do it for a living. plus i'm far too honest. i always find myself pointing out the defects before they do.

You sound like myself - couldnt be a car salesman if my life depended on it.
Im forever pointing out the smallest flaw and any little issue that i know about.
Good to hear its gone too.

pauljh74 · 28-08-2010, 01:31 AM

Quote:

Originally Posted by BENT_8

Next morning i get a call from the bloke, apparently he 'forgot' someone else had looked at it earlier the day before and it was now upto him first, however, if he doesn't want it its mine...

If the other doesn't want it, that would ring alarm bells anyway - what is wrong with it for the other guy to walk away?

BENT_8 · 28-08-2010, 01:53 PM

Quote:

Originally Posted by pauljh74

If the other doesn't want it, that would ring alarm bells anyway - what is wrong with it for the other guy to walk away?

Exactly, the ute was a good buy and we both knew it would sell, but there was NO way i was going to be second in line after promising it to me.
I believe he just wanted more money or one of the workmen found out it was for sale and got it.

Good result for the OP anyway, so alls good!

glavas · 27-08-2010, 04:33 PM

man you should never never redraw on ya homeloan bloody hell. and to use it to put a deposit on a car? jesus sorry mate but i dont think thats smart.

prydey · 27-08-2010, 04:42 PM

Quote:

Originally Posted by glavas

man you should never never redraw on ya homeloan bloody hell. and to use it to put a deposit on a car? jesus sorry mate but i dont think thats smart.

i think you have misunderstood what happened. the redraw paid out a loan. interest on a home loan is less than a personal loan and you just up the repayments so the extra is cancelled just as quick.

don't worry about how i do things. its all good mate. my mortgage isn't much to worry about.

cedric · 27-08-2010, 04:57 PM

Quote:

Originally Posted by glavas

man you should never never redraw on ya homeloan bloody hell. and to use it to put a deposit on a car? jesus sorry mate but i dont think thats smart.

drawing on homeloan is THE best way to borrow money for anything, if you are diciplined and pay as much back as posible, which Prydey obviously does, because he is in front with his loan. there is argument for the pros and cons of borrowing money for cars or any other depreciating asset, but if you do or must then useing homeloan is the cheapest way.

glavas · 27-08-2010, 04:43 PM

okay mate thats all good then that you know what ya doing.

Auslandau · 27-08-2010, 04:46 PM

If you had a deposit from the bloke it would have got messy anyway from him asking for it back and you trying to get the sale. Least this way its a clean break and you know where you stand with the sale.

Quote:

Originally Posted by glavas

man you should never never redraw on ya homeloan bloody hell. and to use it to put a deposit on a car? jesus sorry mate but i dont think thats smart.

Really? When did the rules against using home collateral as a cheap loan come in? Be buggered if there is absolutely nothing wrong with that ..... and as prydey stated ...... he ain't broke .... its more the situation.

Edit .... woops prydey already answered

ZDHLANE · 27-08-2010, 05:42 PM

Quote:

Originally Posted by Auslandau

If you had a deposit from the bloke it would have got messy anyway from him asking for it back and you trying to get the sale. Least this way its a clean break and you know where you stand with the sale.

Really? When did the rules against using home collateral as a cheap loan come in? Be buggered if there is absolutely nothing wrong with that ..... and as prydey stated ...... he ain't broke .... its more the situation.

Edit .... woops prydey already answered

2nd that!
\
My thoughts exactly!

jd dad · 27-08-2010, 04:51 PM

Theres probably a fair few on here that have been had with the same problem, you learn the lesson and the next time dont make the same mistake again. Unfortunately its the way in this world, deposit up or no deal. Glad it all worked out in the end

Yellow_Festiva · 27-08-2010, 05:54 PM

I will tell you who is trusting... the guy from Adelaide who is flying to Sydney tomorrow morning to buy my Starlet that he won off Ebay... Not even a phone call or any sort questions / inspection prior.

I called him yesterday for the first time to confirm that he is paying cash. He told me he has the cash, the 1 way ticket and will just hop into it with his 10yr old son and drive it back home again...

Nothing wrong with the car, and it will do the trip no worries... but don't know if that's something I would be doing!

Bobman · 27-08-2010, 05:56 PM

I think the real debate here should be if you can't afford to buy a car outright, should you really be buying it?

I've always believed that when you save up and buy something with cash, all the effort and hard work pays off.

prydey · 27-08-2010, 06:05 PM

technically any money you can redraw from your loan has been saved by you hasn't it?

Yellow_Festiva · 27-08-2010, 06:10 PM

Quote:

Originally Posted by prydey

technically any money you can redraw from your loan has been saved by you hasn't it?

Yes and no. 'Redraw' can be extra money you have put into the loan. Any spare cent I earn goes into my loan as extra repayments, and if I need that money down the track I can just pull it out and spend it.

However, I have seen banks 'refinance' an existing loan where the original loan has become a smaller percentage of the overall properties worth. So they just release more equity (lend you more money) against the house. This can be done even if you have made nil extra repayments.

I think the Comm Bank called this an "Equity Mate" in their adds a few years ago when they were encouraging people to buy boats / caravans / holidays using their increased property values as security.

vztrt · 27-08-2010, 06:17 PM

Quote:

Originally Posted by Yellow_Festiva

I think the Comm Bank called this an "Equity Mate" in their adds a few years ago when they were encouraging people to buy boats / caravans / holidays using their increased property values as security.

Was big in the states before the proverbial hit the fan.

Yellow_Festiva · 27-08-2010, 06:05 PM

Quote:

Originally Posted by Bobman

I think the real debate here should be if you can't afford to buy a car outright, should you really be buying it?

I've always believed that when you save up and buy something with cash, all the effort and hard work pays off.

Don't think that's the topic of debate here at all actually.

Not everyone buys a car with finance because they are broke. I'm sure the loan / leasing arrangements people use for a business vehicle are tax effective.

However, I do agree with you wholeheartedly that an extravagant personal car that is out of your financial means is for most respects a 'want' rather than a 'need' and should not be borrowed on.

Auslandau · 27-08-2010, 07:20 PM

Quote:

Originally Posted by Bobman

I think the real debate here should be if you can't afford to buy a car outright, should you really be buying it?

I've always believed that when you save up and buy something with cash, all the effort and hard work pays off.

No I would believe that to be ....