Procedures to buying 2nd hand car from Direct Owner

[Rayoflight]

Hi fellow MCF-ers,

Im going to commit to purchase of a 2nd hand car for my mum so i would like to know the procedures to it.

First time buying a car without a loan so i would like to know the procedures for this.

1. Sign S&P with buyer after AAS Checks if car is ok
2. I will settle insurance myself with my own agent
3. He has outstanding loan with Maybank, so whats the procedure like? My agent told me, i will need to go down with him to Maybank to fully settle the loan on the spot? Whats the guarantee to me? What if i help him settle and he suddenly change face? say no deal etc?
4. After loan settlement, we have to go down to LTA to do transfer? what documents are needed? Certainly LTA will need bank documents to say that loan has been fully settled.

Thanks alot!

Rgds,
Ray

[Kangadrool]

Hi fellow MCF-ers,

 

Im going to commit to purchase of a 2nd hand car for my mum so i would like to know the procedures to it.

 

First time buying a car without a loan so i would like to know the procedures for this.

 

1. Sign S&P with buyer after AAS Checks if car is ok

2. I will settle insurance myself with my own agent

3. He has outstanding loan with Maybank, so whats the procedure like? My agent told me, i will need to go down with him to Maybank to fully settle the loan on the spot? Whats the guarantee to me? What if i help him settle and he suddenly change face? say no deal etc?

4. After loan settlement, we have to go down to LTA to do transfer? what documents are needed? Certainly LTA will need bank documents to say that loan has been fully settled.

 

Thanks alot!

 

Rgds,

Ray

 

If possible and it's only logical, make him pay direct to the bank since o/s is between him and his bank. Of course, he should preferably do this before hand rather than on the day itself.

 

In turn, pay him (to his name) with bank draft. Make a photocopy of it.

 

Transfer form can be downloaded from LTA webby, takes less than 5 mins to fill in. Go hand in hand to LTA office to settle if it's office hours.

Edited March 20, 2013 by Kangadrool

[Iisterry]

1. No issue here. Do this one day prior to the transfer/handover. Sign the S&P thereafter, leave a deposit as consideration and keep a copy of the S&P.

 

2. You will need to have a copy of the insurance cert prior to visiting LTA.

 

3. Check his outstanding with Maybank. If it is below sales price, make out a cashier order to Maybank and the balance to his name. If it is higher than sales price, ask him to make out a cashiers order for the difference or bring cash along. There is no guarantee to you. Your only legal recourse is your S&P along with the CO receipt. I suggest both of you using a single car. He can pick you up, go to Maybank & LTA together and then you can drop him off at a convenient place. Maybank can release the lien on the vehicle in the same day if you ask nicely. Drop by Maybank early (opens around 10AM at textile center) and visit LTA thereafter.

 

4. Bring along both owners NRIC/passport along with your insurance cert. LTA does not look at paper docs, they can verify electronically if there is a lien on the vehicle. If Maybank has released it, the transfer is immediate.

[Rayoflight]

Thank you very much!

[Throttle2]

I have done this many times and it may be a little troublesome but this best way is this.

Note: there needs to be a minimum level of trust and integrity in every deal and we must assume this position , otherwise just forget it.

 

So,

On the the day of transfer:

 

Drive the car to the bank.

Show him the cashiers order made out in his name, request for all car keys and his signature on the LTa transfer form and handover form etc.. verifying the details after sighting his IC.

Pass him the cashiers order and together witness the settling of the loan.

Drive to LTA in that car, and do the transfer together.

Afterwhich, shake hands and become friends.

Edited March 20, 2013 by Throttle2

[Rayoflight]

excellent...ive gotten my car today. everything was smooth except we didnt know we got to settle his hire puchase only at maybank textile centre and cut off time at 2pm. so at 145pm from amk maybank pia all the way to textile centre.

 

thumbs up for the service staff at maybank. even though we arrived at 205pm..they still helped us to process it.

 

at lta..it was easy and fast. 5mins job for the counter to transfer ownership.

[WWJ]

So tell us how's your ride and how much you paid for it..?

[Davidklt]

To get from AMK to textile center in 20 mins...is very fast..

 

By the way, that "5 min" processing time in LTA used to cost several hundreds. Glad its been brought down to a nominal figure now.

 

excellent...ive gotten my car today. everything was smooth except we didnt know we got to settle his hire puchase only at maybank textile centre and cut off time at 2pm. so at 145pm from amk maybank pia all the way to textile centre.

 

thumbs up for the service staff at maybank. even though we arrived at 205pm..they still helped us to process it.

 

at lta..it was easy and fast. 5mins job for the counter to transfer ownership.

 

[Sych_ng]

I have done this many times and it may be a little troublesome but this best way is this.

Note: there needs to be a minimum level of trust and integrity in every deal and we must assume this position , otherwise just forget it.

 

So,

On the the day of transfer:

 

Drive the car to the bank.

Show him the cashiers order made out in his name, request for all car keys and his signature on the LTa transfer form and handover form etc.. verifying the details after sighting his IC.

Pass him the cashiers order and together witness the settling of the loan.

Drive to LTA in that car, and do the transfer together.

Afterwhich, shake hands and become friends.

 

 

 

 

So, actually we don't need any S&P lar?

Sorry to Throttle, I don't know how this reply in forum works.....

Edited February 6, 2015 by Sych_ng