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

[ccsgl1900]

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? 

 

Hi,

 

You cannot transfer your car if you have an outstanding loan. The finance company will register with LTA that there is outstanding loan. You can check on LTA onemotoring.com to verify is there outstanding loan. Next, you need 1 day to clear the loan status from with outstanding loan to no loan,  after which than you can transfer the car to the next owner. It is a very safe process, you have to do your part to verify that the car is under your name.

 

If the buyer is taking a loan, the finance company will also register with LTA that the car have outstanding loan.

 

Hope that help, I learn it from selling my previous car.

[Apple-Tree]

Er ...... not entirely true leh.  Over the last decade, LTA has voided a few transactions citing fraud lor and the car ownership is reversed to the previous owner.  Got 1 case, a Mercedes, I remembered that the previous owner only report to LTA after a few months after the transaction lor.

 

With a simple reason, the car was sold without his permission and he had not received any money from the transaction wor ...

 

 

Once ownership is in YOUR NAME, you are safe.

 

[cmcex]

Hi,

 

You cannot transfer your car if you have an outstanding loan. The finance company will register with LTA that there is outstanding loan. You can check on LTA onemotoring.com to verify is there outstanding loan. Next, you need 1 day to clear the loan status from with outstanding loan to no loan,  after which than you can transfer the car to the next owner. It is a very safe process, you have to do your part to verify that the car is under your name.

 

If the buyer is taking a loan, the finance company will also register with LTA that the car have outstanding loan.

 

Hope that help, I learn it from selling my previous car.

 

I am curious, can u enlighten me where in the OneMotoring web can we see the car is under finance obligation ?

[ccsgl1900]

I am curious, can u enlighten me where in the OneMotoring web can we see the car is under finance obligation ?

 

Login to onemotoring.com.sg and check the transfer fees.

Below the transfer fee, it will indicate is there outstanding loan.

[Teo2000]

Er ...... not entirely true leh.  Over the last decade, LTA has voided a few transactions citing fraud lor and the car ownership is reversed to the previous owner.  Got 1 case, a Mercedes, I remembered that the previous owner only report to LTA after a few months after the transaction lor.

 

With a simple reason, the car was sold without his permission and he had not received any money from the transaction wor ...

 

Wow! Like that it is considered a FRAUD case. Police will have to roped in. I believe these cases are quite rare.

 

The more common ones are the 2nd hand car dealers who "sell" cars to people like us but ownership does not belong to them. The cars are either still in their previous owner's names or in the names of finance companies, those in the motor trade called it "floor stock financing" or something like that.

 

Once you pay the money to these "rogue" 2nd hand car dealers, they will take the money but never do any transfer of ownership to your name..... Finance companies will then repo the car that you bought... This is where your nightmare begins.

 

The problem is you don't know which 2nd hand car dealers will become like that....Some are honest and then become "rogue",,,, You never can tell.

 

As what CASE claims, go to the "accredited" or CASETRUST 2nd hand car dealers, I guess it all depends on your luck lor....

[cmcex]

Login to onemotoring.com.sg and check the transfer fees.

Below the transfer fee, it will indicate is there outstanding loan.

 

When u see the info of it unable to transfer or deregister, it simply means the vehicle is tagged by LTA for either illegal modification, offences unpaid or inspection not done. There is never an indication on loan obligation. If this is possible, i dont need to spend $1 every time to check under HPFLAS system in which we as dealers have to register and pay a monthly fee to be able check for finance obligation.

 

Maybe you can use ur friend info for those with outstanding finance and one without finance and u see if there is a diff

Edited March 20, 2019 by cmcex