Jump to content

Car Dealer Does Not Own The Car..


RumTan
 Share

Recommended Posts

Guys, please help advice! I am purchasing a used vehicle from Company A, but on the vehicle log card, the owner of the car is NOT company A but another company. (Let's call it company B)


 


When I ask company A to give me the full UEN of the company that own the car, they refuse to give me.


 


They explain that the reason why the car ownership is company B, is because they not enough cash to purchase the car from the seller previously, so they borrow money from company B. So company B keep the ownership of car to be safe.


 


So should I still purchase this car from company A? Is it safe?


 


Please advice!


 


xoxo


↡ Advertisement
  • Praise 1
Link to post
Share on other sites

 

Guys, please help advice! I am purchasing a used vehicle from Company A, but on the vehicle log card, the owner of the car is NOT company A but another company. (Let's call it company B)

 

When I ask company A to give me the full UEN of the company that own the car, they refuse to give me.

 

They explain that the reason why the car ownership is company B, is because they not enough cash to purchase the car from the seller previously, so they borrow money from company B. So company B keep the ownership of car to be safe.

 

So should I still purchase this car from company A? Is it safe?

 

Please advice!

 

xoxo

 

 

If the price is right, and the condition of the car is good - it should be alright. Just need to make sure that the transfer is done promptly.

 

Link to post
Share on other sites

 

Guys, please help advice! I am purchasing a used vehicle from Company A, but on the vehicle log card, the owner of the car is NOT company A but another company. (Let's call it company B)

 

When I ask company A to give me the full UEN of the company that own the car, they refuse to give me.

 

They explain that the reason why the car ownership is company B, is because they not enough cash to purchase the car from the seller previously, so they borrow money from company B. So company B keep the ownership of car to be safe.

 

So should I still purchase this car from company A? Is it safe?

 

Please advice!

 

xoxo

 

 

Doesn't matter who own the car but please make sure that before final settlement the transfer of ownership is properly done to you.

  • Praise 3
Link to post
Share on other sites

Thanks a lot guys for your kind replies. At least now I have peace of mind 

 

Buying a used vehicle for the first time is .... quite stressing  [bigcry]

 

So happy to be part of this forum

  • Praise 6
Link to post
Share on other sites

Normal la, temp ownership under company B, it is collateral place by company A to purchase the "goods" in this a car.

 

In actual car belongs to A, Company a has to "redeem" back from company B if u "buyer" decides to purchase the vehicle. Simple as that.

Not necessarily hor. Remember this?

 

http://www.straitstimes.com/singapore/courts-crime/case-issues-alert-over-car-dealer-after-complaints

Link to post
Share on other sites

If you are buyin in loan, after ur loan is approved better check with the financial instituition the ownership of the car

 

 

If you are buyin in cashier's order, whose name is it going to be issued to?

 

I normally dun have a gd impression of smaller dealers, usually i would want them to transfer immediately infront of me when i handover the CO, failing which i will recover the cheque.

The current lta system allows internet transfer , theres no reason why they cant do it.

 

 

Pls note there are cases dealers did not settle with 3rd party ownership n run road with the buyers' money

  • Praise 1
Link to post
Share on other sites

I had a very unpleasant buying experience with a small time dealer.

 

Henceforth, I will only buy from reputable and more established dealers. Even if I their prices are a little more expensive, I also wouldn't mind for the peace of mind.

Link to post
Share on other sites

I had a very unpleasant buying experience with a small time dealer.

 

Henceforth, I will only buy from reputable and more established dealers. Even if I their prices are a little more expensive, I also wouldn't mind for the peace of mind.

even "reputable" and "more established" dealers can be subjective. best is to buy from AD if u want the peace of mind.

 

then again... i still buy from PI haha...

Link to post
Share on other sites

Hi guys, thanks for your replies. I also abit scared this company run away with my money

 

It is not a big company... when I background, they are actually sole proprietor

 

Which means if they run away i can sue the owner till his pants drop  -_-

Link to post
Share on other sites

Hi guys, thanks for your replies. I also abit scared this company run away with my money

 

It is not a big company... when I background, they are actually sole proprietor

 

Which means if they run away i can sue the owner till his pants drop -_-

hope u dont have to go to the extent to sue the owner... too much hassle.

 

all the best man.

Link to post
Share on other sites

Hi guys, thanks for your replies. I also abit scared this company run away with my money

 

It is not a big company... when I background, they are actually sole proprietor

 

Which means if they run away i can sue the owner till his pants drop -_-

You already said earlier that the company dont even have the $ to own the car.. you think u will be able to get back your $ by sueing the owner when the coy cant deliver the car?
  • Praise 1
Link to post
Share on other sites

Hi guys, thanks for your replies. I also abit scared this company run away with my money

 

It is not a big company... when I background, they are actually sole proprietor

 

Which means if they run away i can sue the owner till his pants drop -_-

Provided he has the assets to let you sue, otherwise, it will be a LL situation.

even "reputable" and "more established" dealers can be subjective. best is to buy from AD if u want the peace of mind.

 

then again... i still buy from PI haha...

I'm referring to AD used car section.

Link to post
Share on other sites

Provided he has the assets to let you sue, otherwise, it will be a LL situation.

 

I'm referring to AD used car section.

eh but u said "small time dealer"... means they are AD of a lesser known car make?
Link to post
Share on other sites

Hi guys, thanks for your replies. I also abit scared this company run away with my money

 

It is not a big company... when I background, they are actually sole proprietor

 

Which means if they run away i can sue the owner till his pants drop  -_-

 

Good joke bro. If you can afford legal fees to sue and the months of waiting for the case to be settled, you won't be buying a used car from a tiny company and asking for advice on an online forum.

  • Praise 3
Link to post
Share on other sites

Thanks bros, was indeed joking about the suing part. but honestly at least dealing with sole proprietor I feel relatively safer as compared to dealing with pte ltd. Cause after all pte ltd can just wind down, but for sole proprietor have to declare bankrupt. Consequences abit diff lah. 

 

Still abit nervous, hope that after payment, ownership will be transferred promptly. Fingers crossed..

 

Will update here

Link to post
Share on other sites

I would like to share some insights on this:

 

1. Dealers who first come out to strike on their own would normally require financing support for them to buy stock, industry practice we call "flooring". Flooring comes in many many forms, 80% or 70% of valuation of the vehicle. The rest of the difference, paid by the dealer who used this financing scheme.

 

2. Once car is floored, 2 ways to "tag" the car, either the dealer is a ESA of LTA, he can temp transfer to his company and finance tag the vehicle or finance can transfer vehicle directly into finance company.

 

3. Car is sold, loan has been approved, normally, financier of "Flooring" can be credit agent who submits loan on behalf of the dealer, if this happen, finance will transfer the car to dealer who is a ESA or if not, transfer to buyer straight away as the loan was approved in favor of the financier. If the loan was processed by 3rd party, the dealer has to settle the "floor" amount of the car and get the rights back to transfer.

 

4. There are cases where buyers took the vehicle and yet car was not transferred and subsequently towed back by the finance company due to non payment of floor interest. Doesn't matter who owns the car, as long as transfer is not done, buyer have to take note and follow up with the dealer and make sure car is transferred. In some cases, dealer has no money to settle with the financier and may take a short delay, dealer probably asking the loan agent to help with the settlement and then the ability to transfer.

↡ Advertisement
  • Praise 5
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

×
×
  • Create New...