Car Leasing Woes

[Osiris]

Wanna lease your car? it's illegal and it may add to your problem.

anyway this is also another example why 10 yr loan will make it worse if you are in financial difficulties

 

http://www.straitstimes.com/Free/Story/STIStory_249334.html

 

June 19, 2008

NOW A BIGGER MYSTERY...

Six other rental cars missing

Cash-strapped businessman Lau Cheun Kee illegally leases his car to rental company

His Honda Odyssey is reported stolen in Malaysia

Malaysian police say car has been recovered

Cases of cash-strapped car owners leasing out vehicles are said to be fairly common

 

By Christopher Tan, Senior Correspondent

 

'We are not the only ones to lose cars. Others lose a lot of cars too. You can check around.' -MR JEREMY CHONG, 37, director of Eazi Car Lease

 

View more photos

 

THE discovery of a stolen car in Malaysia has solved one mystery, but a bigger one has now surfaced concerning the company that leased it out.

 

Cash-strapped businessman Lau Cheun Kee, whose seven-seater Honda Odyssey was stolen while leased to a rental company, has been told by the police here that the missing car has been found by Malaysian cops.

His problems are far from over as he still owes the bank outstanding car loan payments, and he also faces possible prosecution by the Land Transport Authority.

The bigger mystery concerns Eazi Car Lease, the company that leased the car from Mr Lau in January last year.

It now appears that there are six more owners in a similar predicament, as the company had reported that their cars were stolen too.

The Straits Times understands that a seventh vehicle had been impounded by Singapore Customs because it was used for cigarette smuggling.

 

When contacted, Mr Jeremy Chong, 37, director of Eazi Car Lease, which had about 100 cars, said the most recent of the six cars stolen was a Toyota Wish, which was reported missing in January.

 

'We are not the only ones to lose cars,' Mr Chong said. 'Others lose a lot of cars too. You can check around.'

The Straits Times checked with four companies - ComfortDelGro Rent-A-Car, Auto Fleet Pacific, DownTown Car Rental and Keng Soon Auto - and found that theft of rentals is relatively uncommon. They have about 2,300 vehicles between them, and in the past 10 years or so, had only three thefts.

 

Keng Soon Auto's account manager Tan Keng Hua said: 'We are a proper rental company. Even if there is a theft, we are able to claim from insurance.'

 

Eazi Car Lease's Mr Chong said he is no longer in the business. The company, formed in January last year, is now operating under Eazi Car Leasing & Marketing, which lists his father, Mr John Chong, as one of its registered officers.

 

Cases of cash-strapped car owners handing their wheels over to 'leasing companies' are now fairly common, say industry observers. These owners are unable to sell their cars without being out of pocket.

In Mr Lau's case, he would have had to pay his bank $30,000 even after selling his car - because he had taken a huge, 10-year loan.

 

Hence he took the Eazi route. The company paid him $1,100 a month for his Honda, which helped him pay his monthly instalment of $1,240.

 

But when the company reported to the police that the car had gone missing last June after a customer rented it and drove it to Malaysia, Mr Lau's troubles multiplied.

 

He could not obtain an insurance payout and he received about $900 in parking summonses.

That is not all. The LTA could come after him too as it is illegal for a private owner to lease his car this way.

It is not known when Mr Lau will get back his car, which is believed to be with the Malaysian Customs.

Meanwhile, he will be in court today to face a bankruptcy petition filed by OCBC Bank to recover about $100,000 in car loans from him.

 

[email protected].

[Kezg1]

IMO....there is more than meets the eye. How come lease to rental co after that kenna stolen...

[Mustank]

Eazi Car Lease's Mr Chong said he is no longer in the business. The company, formed in January last year, is now operating under Eazi Car Leasing & Marketing, which lists his father, Mr John Chong, as one of its registered officers.

 

hmmmmm daddy listed as officer of company or owner of business

 

under what circumstances would one want to do that

[Nine_eleven]

Eazi come Eazi go.......

[Osiris]

oh i agree. the statistics of one company 6 car kenna stolen vs industry only a few is more than coincidence.

[Leepee]

Under what type of super duper cash rebate loan can incur $30k still owe to bank after selling car?

I thought usually it will be like $10k or less.

 

Singaporeans...Singaporeans......jack up the COE somemore lah!

[Silver_blade]

How come the loan is so huge? Bank recovering $100k of outstanding car loan from him?

[Osiris]

actually, 95% loan for an ody at 100k, sell within 2 years will likely kenna such cost. plus maybe he also get cash rebate. must payback i think.