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Ct3833

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

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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? 

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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
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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

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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.

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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
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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.

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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. 

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Printing/seeing the latest log card...

 

Remember seeing a line below saying vehicle is under finance.... (if under bank loan).

 

 

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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
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Previously I bought a used car from a direct owner, he forgot to settle his loan, cannot transfer. LTA system got record.

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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

Now new system since 28 nov 2018, if buy direct sale from owner direct is ownself help own self. Buyer seller do online whether do together on the spot or got outstanding loan to clear etc...

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.

I dun think anyway for u to verify or check, so many banks how to know, worse is settle those in house credit company outstanding loan. If I'm not wrong, only business account like LTA or car dealers they may be able to verify. Call LTA to ask n confirm Edited by YEN96

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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...

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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:

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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

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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.

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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.
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