Jie2209 Neutral Newbie September 14, 2012 Share September 14, 2012 Hi, Need some cash... ↡ Advertisement Link to post Share on other sites More sharing options...
Little_prince Supersonic September 14, 2012 Share September 14, 2012 that's not hire purchase. that's akin to mortgaging your car. dont think they will do that. Link to post Share on other sites More sharing options...
Jie2209 Neutral Newbie September 14, 2012 Share September 14, 2012 I know... but is there i law saying that if taking up a hire purchase loan w need to do a transfer of ownership to myself again? Link to post Share on other sites More sharing options...
Jerms Clutched September 14, 2012 Share September 14, 2012 I know... but is there i law saying that if taking up a hire purchase loan w need to do a transfer of ownership to myself again? i think you are trying to say you want to sell the car to yourself again? if you are in need of money why dont you just sell off the car and then get another when you have more cash in hand? if you can try to think of so many ways of trying to raise money.. it seems like you are really in need... why keep the car? and in the first place, your car is under your name and you have no outstanding payment for the car so how are you going to get a bank loan from the bank when the paper work for loan and ownership is under the same name? i hope you understand what i am saying. Link to post Share on other sites More sharing options...
Bighappyjer 1st Gear September 14, 2012 Share September 14, 2012 Hmmm idea hor. Mortgage your fully paid car by selling it to a relative, especially with transfer fee only $11 now, and relatively cheap car loans. Link to post Share on other sites More sharing options...
Jerms Clutched September 14, 2012 Share September 14, 2012 Hmmm idea hor. Mortgage your fully paid car by selling it to a relative, especially with transfer fee only $11 now, and relatively cheap car loans. and if you dont pay, cant afford to pay or dont want to pay? your relative pay? Link to post Share on other sites More sharing options...
Bighappyjer 1st Gear September 14, 2012 Share September 14, 2012 unfortunately, yes! Link to post Share on other sites More sharing options...
Hamburger Hypersonic September 14, 2012 Share September 14, 2012 and if you dont pay, cant afford to pay or dont want to pay? your relative pay? relative confirm siam far far.... Link to post Share on other sites More sharing options...
Little_prince Supersonic September 14, 2012 Share September 14, 2012 (edited) Hmmm idea hor. Mortgage your fully paid car by selling it to a relative, especially with transfer fee only $11 now, and relatively cheap car loans. hmmm. only will work if fully paid. otherwise need to pay loan penalty. never thought of it that way. but i guess it could work. but some stuff also must pay cash upfront. eg insurance, roadtax, first instalment. if you really so poor that u have to resort to that, then might as well sell the car. Edited September 14, 2012 by Little_prince Link to post Share on other sites More sharing options...
Jerms Clutched September 14, 2012 Share September 14, 2012 hmmm. only will work if fully paid. otherwise need to pay loan penalty. never thought of it that way. but i guess it could work. but some stuff also must pay cash upfront. eg insurance, roadtax, first instalment. if you really so poor that u have to resort to that, then might as well sell the car. i agree... if you want to start telling me you want to invest the money you get from the sale of your car and you will earn more than the interest of 2% then the more i doubt you are wise enough to do that because if you are so investment savvy.. you wouldnt need to take your fully paid car to your relative and "fake" a loan correct? Link to post Share on other sites More sharing options...
Little_prince Supersonic September 14, 2012 Share September 14, 2012 i agree... if you want to start telling me you want to invest the money you get from the sale of your car and you will earn more than the interest of 2% then the more i doubt you are wise enough to do that because if you are so investment savvy.. you wouldnt need to take your fully paid car to your relative and "fake" a loan correct? but i know of ppl who do that though. dad "sell" property to son . son take loan from bank. blah blah Link to post Share on other sites More sharing options...
Jerms Clutched September 14, 2012 Share September 14, 2012 but i know of ppl who do that though. dad "sell" property to son . son take loan from bank. blah blah me too.. i heard of it before but i dont personally know.. almost nv a success story. Link to post Share on other sites More sharing options...
Iisterry 3rd Gear September 14, 2012 Share September 14, 2012 I know... but is there i law saying that if taking up a hire purchase loan w need to do a transfer of ownership to myself again? It is know as a mortgage loan. You do not need to transfer to yourself. The bank will indicate a financial interest in your vehicle once it is processed. Only DBS does this currently I believe. Rates are considerably higher than normal HP. Link to post Share on other sites More sharing options...
Jie2209 Neutral Newbie September 15, 2012 Share September 15, 2012 So is hire purchase loan same as mortgage loan? and the agreement isn't using the same one? cause i know hire purchase loan i need to do a transfer of the ownership and mortgage loan we no need and HP loan interest is cheaper as compare to mortgage loan. Please correct me if i am wrong.. Thank bro Link to post Share on other sites More sharing options...
Iisterry 3rd Gear September 15, 2012 Share September 15, 2012 (edited) So is hire purchase loan same as mortgage loan? and the agreement isn't using the same one? cause i know hire purchase loan i need to do a transfer of the ownership and mortgage loan we no need and HP loan interest is cheaper as compare to mortgage loan. Please correct me if i am wrong.. Thank bro It is under different naming convention but still the same fundamentally. IE; it is a secured loan. Similar to Shell Enersave, Synergy, 5000, 8000, V-Power, etc. It is essentially just the RON grade of the fuel that distincts them. HP loan interest is cheaper than mortgage loan and in turn, mortgage loan is cheaper than personal loan rates. Simply because it is a secured VS un-secured loan. Any financing company should be able to handle it for you easily especially if you are looking at a loan quantum significantly lower than market value of the car. Regarding HP or mortgage loan, I don't believe the interests saved will be that significant as compared to the hassle involved of getting a third party to act as the hirer for the HP loan. Unless you are talking about 6-7 figures with a loan period of 5 & above years. Edited September 15, 2012 by Iisterry Link to post Share on other sites More sharing options...
Jie2209 Neutral Newbie September 15, 2012 Share September 15, 2012 Hi, Thank for the reply. Iam am taking up a 50k loan from a car dealer with my existing car.. they approve the amount i request.. i went down and wanted to sign the contract and i find out something funny... the contract is a standard hire purchase agreement but the invoice printed out and it stated as mortgage loan.. and the interest rate stated in the hire purchase agreement is 6%.... End up i did not sign and ask for few days to consider.. my question now is:- 1) mortgage loan can be done without transfer of ownership... am i right? 2) hire purchase loan must do transfer of ownership before taking the loan... this is what bank in doing dun care isn't new owner of existing owner... am i right? 3) I have check with MAS and IPTO they r not listed inside... do they need to have licence to give out such loan? Thank you very much with ur advise... Link to post Share on other sites More sharing options...
Iisterry 3rd Gear September 15, 2012 Share September 15, 2012 ... They will be using the same template as per normal agreements but it is technically a "mortgage loan". I cannot remember the exact interest rate now but it was around 4-5% a year ago from DBS. 1) Mortgage loan is done without transfer of ownership. 2) Hire purchase is done with transfer of ownership. It is essentially a new loan taken up by the new buyer. The banks do not care who the new or old buyer is. Standard bank approval guidelines will apply. 3) Your dealer is likely an agent or arranging such a loan through an agent of the financing bank, as such, they would not be the registered finance company or bank. They should be able to provide you with a documented approval from the bank. You can then call up the bank to verify the loan details before deciding. Link to post Share on other sites More sharing options...
Jie2209 Neutral Newbie September 15, 2012 Share September 15, 2012 The docu or agreement they provide to sign is not from the bank. it have their company name printed on it.. it did not stated any bank name in the agreement.... in this case they need licence? i notice a lots of car dealer credit company have registered under ipto under money lender... Why sign under hire purchase will suddenly become mortgage loan? mortgage loan did not have a standard agreement? is not right when hire purchase loan in taken without transfer of owership? ↡ Advertisement Link to post Share on other sites More sharing options...
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