Need advice - Buying used car from direct owner

[Akazhun]

Hello everyone, I have already agreed on a dealing price with the direct owner.

 

Current Owner: Still have loan left. Car is Normal plate converted to old off peak scheme in 2009 then converted to revised OPC in 2010.

 

Me: Paying by cash or cashier's order. No need loan.

 

Now, what i want is to transfer the car to me, then i convert back to normal plate. This'd cost me $100 plus some road tax.

 

Qn 1 - Should i get the owner to convert to normal plate before transferring to me? Does it even matter?

 

Qn 2 - The process that I know is I pay deposit -> owner clear loan -> I effect my insurance -> meet at LTA -> transfer to my name -> pay balance amount -> receive keys to car.

 

But since current owner has a loan to clear, does it make sense that I pay him full sum to clear his loan before meeting at LTA to transfer to my name? Or maybe we can meet with his finance company together, clear his loan, go LTA together immediately then effect the transfer?

 

What if he refuse to effect the transfer after clearing his loan using my $

 

Qn 3 - Car is not under my name yet, can insurance be bought?

 

Qn 4 - I want to convert OPC into normal plate immediately after transfer of ownership. Does it matter on the type of insurance? OPC and normal insurance got difference?

 

Thanks in advance.

[Kelvingoh45]

Hello everyone, I have already agreed on a dealing price with the direct owner.

 

Current Owner: Still have loan left. Car is Normal plate converted to old off peak scheme in 2009 then converted to revised OPC in 2010.

 

Me: Paying by cash or cashier's order. No need loan.

 

Now, what i want is to transfer the car to me, then i convert back to normal plate. This'd cost me $100 plus some road tax.

 

Qn 1 - Should i get the owner to convert to normal plate before transferring to me? Does it even matter?

 

Qn 2 - The process that I know is I pay deposit -> owner clear loan -> I effect my insurance -> meet at LTA -> transfer to my name -> pay balance amount -> receive keys to car.

 

But since current owner has a loan to clear, does it make sense that I pay him full sum to clear his loan before meeting at LTA to transfer to my name? Or maybe we can meet with his finance company together, clear his loan, go LTA together immediately then effect the transfer?

 

What if he refuse to effect the transfer after clearing his loan using my $

 

Qn 3 - Car is not under my name yet, can insurance be bought?

 

Qn 4 - I want to convert OPC into normal plate immediately after transfer of ownership. Does it matter on the type of insurance? OPC and normal insurance got difference?

 

Thanks in advance.

If got proper sales and purchase agreement,i think should be alright. If you want to be 100% safe,maybe you can engage a secondhand dealer to do for u at a small sum of money.

 

[Civic6228]

If got proper sales and purchase agreement,i think should be alright. If you want to be 100% safe,maybe you can engage a secondhand dealer to do for u at a small sum of money.

 

I agree ... better get the Pros to do it for you and you dun want to get into unneccesary hassle. Try Trade Assist, maybe they can help.

[Akazhun]

hey thanks will check them out.

[Iisterry]

Qn 1 - Should i get the owner to convert to normal plate before transferring to me? Does it even matter?

 

You can check the conversion amount and do it at the same time at LTA. Whoever does it, procedure wise is still the same. You can drive your car to any of the workshop near LTA to have them break the seal and change to a normal license plate.

Qn 2 - The process that I know is I pay deposit -> owner clear loan -> I effect my insurance -> meet at LTA -> transfer to my name -> pay balance amount -> receive keys to car.

 

But since current owner has a loan to clear, does it make sense that I pay him full sum to clear his loan before meeting at LTA to transfer to my name? Or maybe we can meet with his finance company together, clear his loan, go LTA together immediately then effect the transfer?

 

What if he refuse to effect the transfer after clearing his loan using my $

 

Ask him to check the exact outstanding amount. Make out 2 cashier's order, 1 to the bank for the settlement, the other to him for the balance.

 

Certain banks take a while to release the car while others do it within the day so long as you settle in the morning.

 

Ask him to pick you up, both of you will go to the bank together. Once settlement is done, both of you will go down to LTA using his car still. After transfer, etc, is done, just drop him off at a convenient place.

 

Qn 3 - Car is not under my name yet, can insurance be bought?

 

You MUST have insurance before LTA will allow the transfer. Bring along both parties identification along with the certificate of insurance and your cheque book.

 

Qn 4 - I want to convert OPC into normal plate immediately after transfer of ownership. Does it matter on the type of insurance? OPC and normal insurance got difference?

 

Insure for normal plate right at the start. OPC is cheaper but invalid since you are going to drive as normal.

 

Summation.

1) Ask him to check the settlement amount.

2) Prepare 2 cashier's order.

3) Get ready your insurance and make sure the inception date is or before the transfer date.

4) Get him to pick you up and go to the bank to do the settlement together.

5) He drives you to LTA to do your transfer, conversion to normal plate, etc.

6) You give him the balance.

7) You drop him at a place of convenience.

8) You pop by the workshops in the area and get your red plate replaced with a normal plate.

9) You do a full servicing.

 

[Akazhun]

Qn 1 - Should i get the owner to convert to normal plate before transferring to me? Does it even matter?

 

You can check the conversion amount and do it at the same time at LTA. Whoever does it, procedure wise is still the same. You can drive your car to any of the workshop near LTA to have them break the seal and change to a normal license plate.

Qn 2 - The process that I know is I pay deposit -> owner clear loan -> I effect my insurance -> meet at LTA -> transfer to my name -> pay balance amount -> receive keys to car.

 

But since current owner has a loan to clear, does it make sense that I pay him full sum to clear his loan before meeting at LTA to transfer to my name? Or maybe we can meet with his finance company together, clear his loan, go LTA together immediately then effect the transfer?

 

What if he refuse to effect the transfer after clearing his loan using my $

 

Ask him to check the exact outstanding amount. Make out 2 cashier's order, 1 to the bank for the settlement, the other to him for the balance.

 

Certain banks take a while to release the car while others do it within the day so long as you settle in the morning.

 

Ask him to pick you up, both of you will go to the bank together. Once settlement is done, both of you will go down to LTA using his car still. After transfer, etc, is done, just drop him off at a convenient place.

 

Qn 3 - Car is not under my name yet, can insurance be bought?

 

You MUST have insurance before LTA will allow the transfer. Bring along both parties identification along with the certificate of insurance and your cheque book.

 

Qn 4 - I want to convert OPC into normal plate immediately after transfer of ownership. Does it matter on the type of insurance? OPC and normal insurance got difference?

 

Insure for normal plate right at the start. OPC is cheaper but invalid since you are going to drive as normal.

 

Summation.

1) Ask him to check the settlement amount.

2) Prepare 2 cashier's order.

3) Get ready your insurance and make sure the inception date is or before the transfer date.

4) Get him to pick you up and go to the bank to do the settlement together.

5) He drives you to LTA to do your transfer, conversion to normal plate, etc.

6) You give him the balance.

7) You drop him at a place of convenience.

8) You pop by the workshops in the area and get your red plate replaced with a normal plate.

9) You do a full servicing.

 

this is actually exactly what i had in mind. but then from step 4 to 5, you already said the bank settlement is not immediate. meaning we gotta stick together for that few hours and make sure he don't run? LOL cos if the bank settlement is instant (means go there, pay up, get whatever documents to say the car is now not under loan) then steady liao.

[Akazhun]

another thing: small claims tribunal can claim up to $10,000.

 

so can i say that as long as the initial amount i pass to him is less than $10,000, even if he run away i still have some guarantee in terms of claiming from small claims tribunal?

[Kangadrool]

If outstanding bank loan is not too much, why not "pyscho" the seller to clear off himself first?

[Akazhun]

If outstanding bank loan is not too much, why not "pyscho" the seller to clear off himself first?

yeah that would be the best.

 

he haven't got back to me about this yet so i'm asking my questions now first to make clear things in the case if he can't clear it in advance.

[Iisterry]

this is actually exactly what i had in mind. but then from step 4 to 5, you already said the bank settlement is not immediate. meaning we gotta stick together for that few hours and make sure he don't run? LOL cos if the bank settlement is instant (means go there, pay up, get whatever documents to say the car is now not under loan) then steady liao.

 

You can check with the bank when they will release the car. If it's POSB/DBS, good luck.

 

You can still proceed to LTA and obtain a transaction pin with the owner first. The pin can be used for electronic transfer later.

[Mllcg]

You can check with the bank when they will release the car. If it's POSB/DBS, good luck.

 

You can still proceed to LTA and obtain a transaction pin with the owner first. The pin can be used for electronic transfer later.

 

POSB/DBS wont release?

[SimonTan]

If the seller has the cash to settle his own loan would be the best.

But seems like not the case here.

 

Next best is to get a middleman, loan company to lend some money to seller. Seller will pay for the services.

 

Quite 'risky' to use buyer money to help clear the loan for seller.

But if the seller can pre-sign the transfer documents and alllow the buyer to hold his IC for a day, then maybe a mutual agreement can be arranged.

Try to clear the loan first thing on a weekday morning, so that the release can be in effect by afternoon.

[Akazhun]

If the seller has the cash to settle his own loan would be the best.

But seems like not the case here.

 

Next best is to get a middleman, loan company to lend some money to seller. Seller will pay for the services.

 

Quite 'risky' to use buyer money to help clear the loan for seller.

But if the seller can pre-sign the transfer documents and alllow the buyer to hold his IC for a day, then maybe a mutual agreement can be arranged.

Try to clear the loan first thing on a weekday morning, so that the release can be in effect by afternoon.

 

hey! that's a good idea to pre-sign the documents!

 

but if the release can be effect by afternoon if clear loan in morning, then i don't mind going down with seller to clear loan then afternoon go direct to LTA to effect the transfer. all settle in one day best.

[Jj5599]

TS, buying from direct owner should be a smooth process, don't stress. I done it before.

[Akazhun]

TS, buying from direct owner should be a smooth process, don't stress. I done it before.

yup! hope everything go through smoothly. i feel direct owner still better than dealing with dealers.

[Jj5599]

Are you still doing the purchase yourself or you getting a 3rd party to help you out? I do agree that there is a risk element there that the owner don't transfer ownership to you.

[Akazhun]

Are you still doing the purchase yourself or you getting a 3rd party to help you out? I do agree that there is a risk element there that the owner don't transfer ownership to you.

tentatively still doing myself. waiting for owner to get back to me on how he wants to settle his loan. if he can settle on his side, then no more issue liao.