Jump to content

How to ensure no outstanding loan when buying an used car?

Ct3833

By Ct3833,
in General Car Discussion

 Share

Recommended Posts

Ct3833

Ct3833

Supersonic

Hi,

Need to ask the experts here. I bought used cars from direct sellers before and we did direct transfer and cashier order hand over in LTA. There is a line in the LTA transfer form for the seller to declare that he has no more outstanding loan.  My question is , how do I know if one really has no outstanding loan? can one make a false declaration and end up my car get towed by finance company after the ownership is transferred?  I guess once  the ownership is transferred, finance company cannot reposes the car from the new owner? 

↡ Advertisement
Link to post
Share on other sites
Thaiyotakamli

Thaiyotakamli

Supersonic

Hi,

Need to ask the experts here. I bought used cars from direct sellers before and we did direct transfer and cashier order hand over in LTA. There is a line in the LTA transfer form for the seller to declare that he has no more outstanding loan. My question is , how do I know if one really has no outstanding loan? can one make a false declaration and end up my car get towed by finance company after the ownership is transferred? I guess once the ownership is transferred, finance company cannot reposes the car from the new owner?

Good thing about car with loan, if still got loan lta wont allow transfer
  • Praise 3
Link to post
Share on other sites
Ct3833

Ct3833

Supersonic
  • Author
(edited)

Good thing about car with loan, if still got loan lta wont allow transfer

thanks for your reply .  I did it three times over the past few years  and so far no problems. But how would LTA know there is no loan? is there a mechanism for a bank to  block the transfer when a loan is not cleared?  I am asking because i am going to do another transaction and this one i am a little skeptical. 

Edited by Ct3833
Link to post
Share on other sites
Teo2000

Teo2000

4th Gear

Yes, there is a mechanism whereby LTA knows that the vehicle is still under finance. The bank once told me that they will "release the Form B" once I fully settled my outstanding loan. I full settled and next day I sold to dealer and it was immediately e-transfer to dealer's name.

Link to post
Share on other sites
Ct3833

Ct3833

Supersonic
  • Author
(edited)

Yes, there is a mechanism whereby LTA knows that the vehicle is still under finance. The bank once told me that they will "release the Form B" once I fully settled my outstanding loan. I full settled and next day I sold to dealer and it was immediately e-transfer to dealer's name.

Thanks for your reply. This is quite assuring. So far my transactions have been good but i have been scratching my head how the hell would LTA know there is no outstanding loan by just getting a seller to put a tick  on the form. 

Edited by Ct3833
Link to post
Share on other sites
Thaiyotakamli

Thaiyotakamli

Supersonic

thanks for your reply . I did it three times over the past few years and so far no problems. But how would LTA know there is no loan? is there a mechanism for a bank to block the transfer when a loan is not cleared? I am asking because i am going to do another transaction and this one i am a little skeptical.

Yes LTA can see whether car still under finance, so dont worry, on the day u hand in cashier order or cash, u can do on the spot to transfer the car.

 

If you worry u can try to call the bank and do double check whether loan already clear.

Link to post
Share on other sites
Ct3833

Ct3833

Supersonic
  • Author

Yes LTA can see whether car still under finance, so dont worry, on the day u hand in cashier order or cash, u can do on the spot to transfer the car.

 

If you worry u can try to call the bank and do double check whether loan already clear.

The problem is if a guy say he has no more loan, I wont even able to   know which bank to call. Not trying to be paranoid but just want to be careful and understand the process. 

Link to post
Share on other sites
Wt_know

Wt_know

Supersonic
(edited)

if an “individual” can login using his/her singpass and do the transfer

this mean he/she has 100% ownership of the car in order to execute the transfer

no more outstanding loan ... else the car is still owned by the bank ... even with just a few more months installment

 

not sure about corpass though

do ah seng dealer has 100% ownership of the car displayed in their showroom

like thaiyo said ... if the person can login to onemotoring and do the transfer ... means ... the login “identity” has 100% ownership of the car

Edited by Wt_know
  • Praise 1
Link to post
Share on other sites
Soya

Soya

Supersonic

Hi,

Need to ask the experts here. I bought used cars from direct sellers before and we did direct transfer and cashier order hand over in LTA. There is a line in the LTA transfer form for the seller to declare that he has no more outstanding loan. My question is , how do I know if one really has no outstanding loan? can one make a false declaration and end up my car get towed by finance company after the ownership is transferred? I guess once the ownership is transferred, finance company cannot reposes the car from the new owner?

If still under loan, the bank need to 'release' the car in the system b4 LTA transfer can be effected. The release will take a couple of days after full settlement.

 

If seller bluff n say no loan, the system will prevent the transfer from going thru.

 

Technically. But still read of cases of car being repo after transfer from used car dealer or PI. Dunno how that can happen...

  • Praise 1
Link to post
Share on other sites
Ct3833

Ct3833

Supersonic
  • Author

If still under loan, the bank need to 'release' the car in the system b4 LTA transfer can be effected. The release will take a couple of days after full settlement.

 

If seller bluff n say no loan, the system will prevent the transfer from going thru.

 

Technically. But still read of cases of car being repo after transfer from used car dealer or PI. Dunno how that can happen...

Thanks so much. This is very clear. So far my previous purchase have been safe.  Appreciate your valuable info. :a-good:

Link to post
Share on other sites
HenryMagma

HenryMagma

Clutched

Hi,

 

Can anyone advise what is the procedure like if I were to sell my car directly to owner?

 

I understand that the buyer and I need to go to LTA to transfer the vehicle to his name.

 

But do I need to deregister the vehicle before transferring to the buyers name?

I cant find any info about this on LTA site.

It seems like from LTA site, we only need to fill up the transfer form only.

 

On top of this, how do I actually settle my outstanding loan?

I mean, if the buyer pass me the cheque, does it need to be under my name or the banks name?

 

Anyone here experienced selling their ride to direct owner?

 

Please advise.

 

Cheers

Orac

Link to post
Share on other sites
Soya

Soya

Supersonic

Hi,

 

Can anyone advise what is the procedure like if I were to sell my car directly to owner?

 

I understand that the buyer and I need to go to LTA to transfer the vehicle to his name.

 

But do I need to deregister the vehicle before transferring to the buyers name?

I cant find any info about this on LTA site.

It seems like from LTA site, we only need to fill up the transfer form only.

 

On top of this, how do I actually settle my outstanding loan?

I mean, if the buyer pass me the cheque, does it need to be under my name or the banks name?

 

Anyone here experienced selling their ride to direct owner?

 

Please advise.

 

Cheers

Orac

If u selling directly n still hv outstanding loan, u need to full cash settle your loan w the bank first

 

After full settlement, the bank will release the car from the system

 

Then u go to Sin Ming n do transfer to the buyer. Buyer of course gotta have the Cashier's Order ready w your name on it n pass to u once transfer successful.

 

Remember, no personal cheques. Cashier order or a bag full of cash only.

Link to post
Share on other sites
Ct3833

Ct3833

Supersonic
  • Author

If u selling directly n still hv outstanding loan, u need to full cash settle your loan w the bank first

 

After full settlement, the bank will release the car from the system

 

Then u go to Sin Ming n do transfer to the buyer. Buyer of course gotta have the Cashier's Order ready w your name on it n pass to u once transfer successful.

 

Remember, no personal cheques. Cashier order or a bag full of cash only.

Thanks ..unable to praise you anymore.
Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
 Share
Go to topic listing
×
×
  • Create New...