Darth_mel 1st Gear February 5, 2007 Share February 5, 2007 Apparently, some car agents claimed that it is legal while others say otherwise. I am really confused. Anyone can comment ? ↡ Advertisement Link to post Share on other sites More sharing options...
Dermocyma Neutral Newbie February 5, 2007 Share February 5, 2007 willing buyer will seller. in my opinion, legal. Link to post Share on other sites More sharing options...
Ccssgm 1st Gear February 5, 2007 Share February 5, 2007 They Never Force U......... To Sign / To Buy........Why Not Legal ?........ Link to post Share on other sites More sharing options...
Jackfoo 1st Gear February 5, 2007 Share February 5, 2007 overtrade?? can explain more what is this. thank you Link to post Share on other sites More sharing options...
Jackfoo 1st Gear February 5, 2007 Share February 5, 2007 sorry... is it the same as cash rebate?? Link to post Share on other sites More sharing options...
Ccssgm 1st Gear February 5, 2007 Share February 5, 2007 Let Say: Your Present Car After Sold Off.....Left the Balance Of $10K..... Either U Take Out Cash to Settle It..Or Bring Over Your $10K to the New Car Loan.. Link to post Share on other sites More sharing options...
Sunray Neutral Newbie February 6, 2007 Share February 6, 2007 Outstanding old loan bring over to the new loan. New loan will be snow ball... Link to post Share on other sites More sharing options...
Zoom99 Neutral Newbie February 6, 2007 Share February 6, 2007 Even if illegal this is AD/PI problem, isn't it? Link to post Share on other sites More sharing options...
Ghostrider 3rd Gear February 6, 2007 Share February 6, 2007 willing buyer will seller. in my opinion, legal. You forgotten about the deceived lender ? Finance company does not know about the overtrade...if they know, they would not want to lend the money to something that is overpriced. Cos in the event that the lender default on his payments, there is a very good chance that they will not recover much from the sales (cos its overpriced) and they may have to write off the losses and sue the lender which will incur extra cost to them. So its "legal" between the seller & buyer but not legal to the finance company Link to post Share on other sites More sharing options...
Blackyv Turbocharged February 6, 2007 Share February 6, 2007 (edited) u seriously thought the bank dont know about such practise?... it's legal btw the seller and buyer but "not legal" to finance company AND garmen but so far, finance and garmen close one eye i think.... wait and see when garmen put one leg into it and it will become Illegal ... Edited February 6, 2007 by Blackyv Link to post Share on other sites More sharing options...
Ghostrider 3rd Gear February 6, 2007 Share February 6, 2007 Overtrade means that you pay more for what you bought. Usual case is customer trade in his car for a used or new ride. But the old ride still have outstanding balance after selling. So dealer makan the car to absorb the outstanding (hence overtrade). This extra amount is then paid by marking up the car you bought plus the overtrade amount. Say you got a Altis...you owe 10k to the finance after selling. You bought a new car at 70k...then dealer will mark up the price to 80K...the diff in 10K the dealer will take. You bought a 70K with a 10K mark up....and paying for the extra 10k worth of interest that comes along with it. Link to post Share on other sites More sharing options...
San_e_fen_ming Neutral Newbie February 6, 2007 Share February 6, 2007 Finance company don't know or chose not to know....!!!!!!!!!!! Link to post Share on other sites More sharing options...
Ghostrider 3rd Gear February 6, 2007 Share February 6, 2007 Its not dunno....but close one eye. As long as there is business to be done...why not. Since they are not the one that kenna interest until jialat jialat... Technically...anything goes wrong, they can say that the dealers cheat them...cos you think dealers will indicate black and white to finance that this is a overtrade ? So the can repo the car from lender...try to recover any balance...and if the balance is hugh...it might be worth it for the finance company to sue the dealer for cheating.... Link to post Share on other sites More sharing options...
Galantspeedz Turbocharged February 6, 2007 Share February 6, 2007 looking from another point of view. how much the car is worth is determined by me 'the buyer'. so in what way am i lying to the finance company? the car or anything else is worth as much as how much the buyer is willing to pay and nothing else. If a 100gm gold can only be sold for $0.01, is that wrong or illegal? If a rock is worth $100k, is that wrong or illegal? Link to post Share on other sites More sharing options...
Ghostrider 3rd Gear February 6, 2007 Share February 6, 2007 For lender to determine not the buyer. You determine the price only if you are paying for it yourself. If you need to involve the finance company, technically speaking, the goods that you want to buy belongs to them until you have repaid the loan. So they have a vested interest in it...so its up to them to determine the price. Its the trend now...gov have not step in to regulate....if there are too many pple piled up in their debts...you will see regulations. SG rules and regulations tend to be non pro active in such stuffs.... Link to post Share on other sites More sharing options...
Jrage 1st Gear February 6, 2007 Share February 6, 2007 (edited) It's not really legal neither is it illegal. It's a grey area that no one wants to address. For car, it's very difficult what is the selling price. Selling price is determined by the importer/dealers. E.g. a Honda Fit with the same omv and coe can have 2-3k different. It really depends on how much margin the company wants to earn. So gov/fin cannot stop ppl from profiting. So in a overtrade purchase, it just means that you bought the car at a higher price. The authorised dealer/PI will then 'issue you some voucher' which then they use to offset your trade-in car outstanding balance. Or it can be translate into cash for you. So there is nothing illegal abt it with proper documents. authorised dealer normally dont do this because they may have a inflexible accounting system. Overtrade required account creativity! hee hee ... Also PI/Authorise dealer can also claim that they put in extra accessories into your car , thus justifying the additional cost. So there is no way the gov/fin company can monitor. Anyway car dun have resale value and always changing, so the actual price of the car is not considered in the equation. My car price just dropped $2k now after the Feb bidding, with no charge in OMV and little change in COE. Edited February 6, 2007 by Jrage Link to post Share on other sites More sharing options...
Galantspeedz Turbocharged February 6, 2007 Share February 6, 2007 lender determines the price to LEND, not the price of the car. For eg: if i pay $100k for a toyota vios but need to take 20k loan. does the bank still determine the selling/purchase price? te bank determine the loan amt that they are willing to lend BASED on THEIR OWN VALUATION. and not necessary the selling/purchase price Its different... Link to post Share on other sites More sharing options...
Galantspeedz Turbocharged February 6, 2007 Share February 6, 2007 Also PI/Authorise dealer can also claim that they put in extra accessories into your car , thus justifying the additional cost. So there is no way the gov/fin company can monitor. ------------------------------------------------------------------------------------------ the banks can monitor if they want, but they will den have to hire extra people and even specialised people just for the job. and the transport cost, etc. Is it worth it? ↡ Advertisement Link to post Share on other sites More sharing options...
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