subject to ppi clause in contract of sale

[vinnytang]

Hey all,

writing up a contract of sale for a vehicle that will be subject to a ppi before commitment to purchase, with a deposit paid prior. I was wondering what was the best way to word this clause in the sale agreement since I've never added this into one of my purchases.

Hopefully I've asked this in the right forum section.

Thanks in advance!

Vinny

[rminc]

Why don't you just pay for the PPI and if if all is well, pay a deposit. I think paying for the PPI is enough to show you're serious enough. Placing a deposit prior kind of diminishes your bargaining power after the results come back (if they're not ideal) as you've already kind of committed. 

 

[vinnytang]

im also paying for the ppi too. the deposit i guess secures it for me when there's a few other potential buyers

[rminc]

Fair enough. See how you go. Just put something like 'deposit to be refunded in full if PPI does not yield good results'. 

Seller should be reasonable about it. 

[red clubbie]

I've always got a PPI prior to paying some sort of Deposit.

I have always negotiated a purchase price, subject to the PPI result.

You then try and get the PPI done asap.

At the end of the day, it's the buyer who gets the cash down first who gets the car......

 

Cheers,

Geoff.

[JLD]

Ensure you include the words:

subject to the Pre Purchase Inspection being to my satisfaction

 

This way you have the final say, and you don't need to give a reason as 'to my satisfaction' is extremely broad

[Mike D'Silva]

Is this for the white LHD ex Japan coupe?

[bear924]

I once missed out on a car because between my time of inspection and the booked PPI, somebody offered to purchase the car without a PPI. I probably could have paid a deposit on the car, however didn't want the mess of recovering the deposit in the event something scared me in the PPI. In fairness to the seller he did let me know someone was coming to look at the car and was ready to pay cash, so I didn't feel 'cheated' as I made a risk based decision. It's also difficult to know how much deposit to put down and perhaps that is tied to how comfortable you are about the seller.

When I recently sold my SC, I explained to any potential purchasers that I would treat a booked PPI as a deposit. This can be tricky when you start getting multiple interested parties as being open about what is happening can be perceived to be pressuring the potential purchasers. It can also be difficult to communicate if someone 'books' a PPI, and then changers their mind as other purchasers start second guessing. 

So from my recent experience from both sides, not sure there is a clean, no risk way to proceeding. Ultimately I would be guided about how comfortable you are about the buyer/ seller as I suspect in the real world, recouping a paid deposit would be difficult if the seller decided to keep it.

[symsy]

Depends if the PPI is a negotiating mechanism or is a decision making mechanism

Almost impossible to administer legally , im sure we have a legal beagle on here , who will give you $10 bucks worth of advice

Maybe have a position describing your intentions and some boundaries .. what items are show stoppers and or what the financial boundary is in dollars?

 

[vinnytang]

thanks for everyone with their help. I managed to get an agreement sorted that I'm satisfied with.

[Zelrik911]

Please keep us informed on how this turns out - good or bad. 

As a potential seller, I am unsure about PPI's. I don't think I would let anyone I didnt know & didnt sort of trust play around with my car when I am not around - especially an older sports car. I am always reminded of the parking attendants in Ferris Bueller's Day Off.  

By all means,  a prospective buyer is welcome to bring a knowledgeable 'expert' friend  But if you really want a PPI as a bargaining tool, then that sort of purchaser should go buy from a car yard. 

 

 

[D2000]

1 hour ago, Zelrik911 said:

Please keep us informed on how this turns out - good or bad. 

As a potential seller, I am unsure about PPI's. I don't think I would let anyone I didnt know & didnt sort of trust play around with my car when I am not around - especially an older sports car. I am always reminded of the parking attendants in Ferris Bueller's Day Off.  

By all means,  a prospective buyer is welcome to bring a knowledgeable 'expert' friend  But if you really want a PPI as a bargaining tool, then that sort of purchaser should go buy from a car yard. 

 

 

You could always be there for the ppi

[09ELF]

If you requested to conduct a PPI on my cars I would want an agreed price first and no deposit.

I would also advise you, if someone comes up with the money before the PPI then I would sell it to them and will not hold a deposit.

 

The whole PPI process is a pain in a bum. In reality i would just put it through an auction or leave it with a stealership.. lol

 

[JLD]

I've walked away from a car because the owner wouldn't entertain a PPI. Made me think he had something to hide. I get that it's a pain from the seller's point of view, but from the buyer's point of view it gives some comfort. Consider that some people don't know how to tell if a car has been converted or if it has had accident damage or if there are hidden nasty surprises. There is a good baseline with a PPI that an unknowledgeable buyer can make a less risky purchase

[vinnytang]

Quick update, I purchased the car at asking price after the PPI looked good. Currently en route via CEVA, so until I have the car in my garage I won't be ready to call it a happy-ever-after ending just yet!

[Dalai]

2 minutes ago, vinnytang said:

Quick update, I purchased the car at asking price after the PPI looked good. Currently en route via CEVA, so until I have the car in my garage I won't be ready to call it a happy-ever-after ending just yet!

Congratulations!

Had mine transported from WA by CEVA last February - car came unscathed, though was a month hitting refresh on the tracking page!

[WOKA]

25 minutes ago, vinnytang said:

Quick update, I purchased the car at asking price after the PPI looked good. Currently en route via CEVA, so until I have the car in my garage I won't be ready to call it a happy-ever-after ending just yet!

So pretty.!  Congratulations.

[vinnytang]

Car arrived in one piece as described. Gearbox synchros are little more crunchy than I was expecting, but it was included in the PPI. Might have to do with my LHD shifting skills also...

Went through the RWC without any issue, so one happy customer here! 

Also, someone on here might know the answer to this. If the car was imported and complied and previously registered in NSW, do I need to get a VASS certificate in order to club rego the car in Victoria? The VicRoads website is a bit vague.

 

[Dalai]

1 hour ago, vinnytang said:

If the car was imported and complied and previously registered in NSW, do I need to get a VASS certificate in order to club rego the car in Victoria? The VicRoads website is a bit vague.

Congratulations once again. Nice car!

The MR2 turbo I just got my plates for last Friday was a JDM import complied in Queensland. Just included a photo of the plate with the other photos required and had no questions raised...

[JonoF]

On 13/02/2018 at 12:20 PM, JLD said:

Ensure you include the words:

subject to the Pre Purchase Inspection being to my satisfaction

 

This way you have the final say, and you don't need to give a reason as 'to my satisfaction' is extremely broad

Exactly the wording I have used. 

2 hours ago, vinnytang said:

Car arrived in one piece as described. Gearbox synchros are little more crunchy than I was expecting, but it was included in the PPI. Might have to do with my LHD shifting skills also...

Went through the RWC without any issue, so one happy customer here! 

Also, someone on here might know the answer to this. If the car was imported and complied and previously registered in NSW, do I need to get a VASS certificate in order to club rego the car in Victoria? The VicRoads website is a bit vague.

 

Looks bloody awesome mate! Congrats! 

[Coastr]

I don't think I've ever had a 'formal' agreement to buy a car.  Make offer, subject to ppi.  If accepted, go through with process and pay money.

a written contract might be enforceable  - maybe - but what are you going to do?   Get the seller to sell you a car he has already sold?

if there are other buyers around with cash you're going to get gazumped if you take too long.  Best to find a car without a lot of other buyers around, especially if you go to an auction.

[Damienb]

8 hours ago, vinnytang said:

Also, someone on here might know the answer to this. If the car was imported and complied and previously registered in NSW, do I need to get a VASS certificate in order to club rego the car in Victoria? The VicRoads website is a bit vague.

Hi Vinny. That looks sweet! Congrats.

I checked this same issue out a year or so ago when looking at a Japanese import. My recollection is that once the car has been registered in Australia (any state) it's on the database and you won't have to go through the VASS process again. You should be fine with your RWC.  But I stand to be corrected (don't you love forums? All care and no responsibility!).

[Zelrik911]

9 hours ago, vinnytang said:

 

Also, someone on here might know the answer to this. If the car was imported and complied and previously registered in NSW, do I need to get a VASS certificate in order to club rego the car in Victoria? The VicRoads website is a bit vague.

 

The answer is No - all the compliance stuff has already been done.

However, whether or not a Club in Vic accepts a car for their permit scheme is up to them. I haven't heard of a rejection based on a VASS (but I could be wrong!!) 

Good looking car, you will have fun with that. Learn how to adjust the clutch & replace a few simple bits in the gearchange  - as this could be an easy fix. And learn to hold the gearlever with 2 fingers (not your fist). 

[Dalai]

Thankfully mine had been registered and in the system. Because the RWC listed the compliance date of 99 and not the build date of 92, so when the details were entered from the RWC the VicRoads system initially threw an error that my car was too new for a Club Permit!

[vinnytang]

Thanks for the replies everyone, sounds like I'm on the home stretch. Will start a new thread in the ownership area to stop clogging up our favourite speculation section. 

Big thanks to @Gavin (CliffToCoast) for sharing his info about the car to persuade me to seriously consider buying it.

But my two cents on PPIs are:

I've bought six cars sight unseen from interstate over the last five years across Gumtree, forums, Carsales and eBay. Because they were priced sharply or examples were thin on the ground, I've had to trust my gut and push my chips in with the information I received from the seller and nothing else. This time was the only exception where I managed to write in a PPI, to be honest if I believed the seller was going to close the deal with another party, I would've just transferred the cash without hesitation in order to secure it. Fortunately enough I have managed to buy well so far, but one day my luck will run out and a papier mâché bog monster will be delivered to my doorstep. 

I would never advise someone to purchase a car from overseas or interstate without a PPI or at least an inspection by a trusted expert/friend/enthusiast if they were unfamiliar with mechanicals and the specific model in question. My missus says I never take my own advice, but I personally love the stress and the thrill of the hunt. That lingering feeling that everything could go wrong very quickly keeps you alive, that's why we love driving at the limit isn't it?