The FinanceBusters organization presents the Finance-Take-Over
What is a Finance Take Over?

A Finance Take Over is a used vehicle transaction where the Buyer purchases, by way of a private sale, the Seller’s used vehicle as well as the balance of the finance contract that is attached to the vehicle.

A Vehicle and a Payment

There are actually two (2) main components of a Finance Take Over. The first component involves the procedures and conditions of privately purchasing a used vehicle from another individual. The second component involves all the procedures and conditions of applying for and (credit) qualifying for the financing of the vehicle.

Credit Approval

All Finance Take Overs require the Buyer to apply for and credit-qualify (be approved) for the finance package that is part of the vehicle sale. The Buyer must have a good credit rating in order to be approved by the finance company. If the Buyer does not have good credit or cannot qualify for credit (for whatever the reason); the Finance Take Over transaction must be mutually cancelled by both the Buyer and the Seller.

The Finance Contract Obligations

The Buyer must adhere to all the terms, conditions and parameters of the original finance contract. The Buyer, in return for following the finance contract’s conditions, will receive the same

  • Remaining term
  • Monthly payment
  • Original interest rate charged by the finance company
Most finance contracts offered by the new car manufacturer’s finance companies (e.g. GMAC, Ford Credit, Toyota Credit, Honda Credit, etc) are opened ended contracts that can be paid out in whole or in part at any time throughout the contract period without financial penalty.

Bill of Sale

Since the Finance Take Over transaction is a private sale between a Buyer and a Seller, a bill of sale between the two parties must be drafted on or before the closing of the deal. Every province has their own rules and protocol regarding private vehicle purchases and the types of acceptable Bills of Sale that are considered acceptable. All the FinanceBusters Seller’s have been instructed to have these documents available for the Buyer’s review when showing the vehicle. All provincial vehicle licensing offices provide these documents at no-charge or for a nominal fee.

Sales Taxes

Every province has their own policies on the taxation of used vehicles that are sold privately. For example, Ontario charges 8% (the provincial retail sales tax rate) on the Canadian Red Book Wholesale value of the vehicle or the sale price of the vehicle (whatever is higher); Alberta does not charge any taxes on the private sale of used vehicles. Regardless of the provincial policy; FinanceBusters Sellers have agreed to negotiate the payment of sales tax due with the Buyers (by way of a cash incentive). FinanceBusters has every province’s sales taxes policies and formulas and will be able to assist in all questions and comments relating to this necessary component of the transaction

Vehicle Ownership

Upon completion of the Finance Take Over transaction; the Buyer will actually be the new owner of the vehicle. The vehicle’s registration/ownership will be transferred into the Buyer’s name which is also one of the main steps in the transaction process. Like any other formal loan or finance agreement, once the contract has been fully paid and satisfied, the asset (the vehicle) is considered paid in full.

Cash Purchase

Although a direct cash purchase of a FinanceBusters vehicle opposes the true spirit of a Finance Take Over; they are perfectly acceptable and encouraged since there are several major automotive finance companies that do not have a finance contract transfer facility in place. The FinanceBusters sales analyst team must evaluate the fair market value of the vehicle and will work with the customer to establish a vehicle price that will be in line with the market. Cash purchases must satisfy the existing finance contract payout and the Seller must be able to make up any shortfall between the final sale price and the payout.

Dealership Participation

FinanceBusters encourages the participation of the vehicle’s original selling dealership. The dealership will benefit from every Finance Take Over transaction because they become the recipient of the new customer (the Buyer) and have the opportunity to maintain the original customer (the Seller). Often, new car dealerships will solicit their finance customers to find out if they would like to "get out of" their existing finance contract and “get into” a new vehicle through their dealership.......FinanceBusters provides the service to make these transactions happen on a regular basis.

Buying and Selling the FinanceBusters Way

To find out more about the Buying process and/or the Selling process; check out one or both of the following links.

Search for a Car   |  Get a no-charge evaluation of your finance contract




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