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Selling your car

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aargon
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Selling your car

Postby aargon » Fri, 21 Dec 2012 5:37 pm

Can anyone share with me their experiences when selling their car?

I was told by the dealer that bought mine, that they would settle my loan balance and pay me the differential by cheque...and that it was usual practise. However, one month has passed since I transacted with them and my loan balance is still outstanding and the car is still under my name.... what is worst is that I am now overseas and no longer in Singapore... my bad to be so ignorant in thinking you could deal with honest car dealers in Singapore....and my bad for not checking on this straight after selling the car and handing it over to them :(

keen to hear peoples experiences and advise....

and keen to name and shame this dealer if I cant reach a resolution soon..
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Postby aargon » Fri, 21 Dec 2012 5:39 pm

oh, and keen to hear what legal recourse i have to get this resolved.... small claims tribunal i presume.... :???:
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Postby taxico » Fri, 21 Dec 2012 10:59 pm

usually the car dealer sorts everything out and i get a check within a week (matter of days, i'd think). i'm surprised the car's still in your name. what did they tell you was the hold up over the phone?

or is this a finance/bank issue...?

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Postby JR8 » Fri, 21 Dec 2012 11:14 pm

Along the same lines as Taxi.

What did the car dealer say when you queried this with them? You have asked them?

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Postby aargon » Sat, 22 Dec 2012 7:44 am

Havent be able to get hold of him. only found out yesterday when i called the bank. Assume the car is still under my name given the loan is still outstanding on it? or is it possible to transfer car ownership despite this? :???:

what a hassle.....
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Postby JR8 » Sat, 22 Dec 2012 8:23 am

Hassle? But you're not speaking to the people answerable to you.

I mean this politely and helpfully, but I oso want to maybe give some kind of jolt ah. - Are you totally clueless!? Are you afraid of speaking to them!? Call the car dealer and ask him what is happening with your car ah? Simple.

Until you have done that, no one here can say anything that will help you.

Do it, and come back with an update and I'm sure people will try and help you further, if that is what is needed.

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Re: Selling your car

Postby offshoreoildude » Sat, 22 Dec 2012 9:12 am

aargon wrote:Can anyone share with me their experiences when selling their car?

I was told by the dealer that bought mine, that they would settle my loan balance and pay me the differential by cheque...and that it was usual practise. However, one month has passed since I transacted with them and my loan balance is still outstanding and the car is still under my name.... what is worst is that I am now overseas and no longer in Singapore... my bad to be so ignorant in thinking you could deal with honest car dealers in Singapore....and my bad for not checking on this straight after selling the car and handing it over to them :(

keen to hear peoples experiences and advise....

and keen to name and shame this dealer if I cant reach a resolution soon..


IT sounds to me as thought they are doing a consignment sale... i.e. when it sells then they'll pay you. When I last sold a car here I had a cheque in my hand when I left the dealers lot. I don't think you dealer is dishonest; more likely your stupid and ignorant of what you've actually arranged.
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Postby x9200 » Sat, 22 Dec 2012 9:57 am

Just for curiosity sake: how is it arrange then that you have a cheque in your hands and at the same time the loan is still with you so you have to pay the installments. Makes not too much sens to me. It's not a blank cheque I presume :)

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Postby offshoreoildude » Sat, 22 Dec 2012 10:02 am

x9200 wrote:Just for curiosity sake: how is it arrange then that you have a cheque in your hands and at the same time the loan is still with you so you have to pay the installments. Makes not too much sens to me. It's not a blank cheque I presume :)


I can't recall exactly how it happened - a long time ago. I believe the car guys worked out the balance I owed, what they wanted to pay and gave me a cheque for the difference. I normally buy cars with a bid deposit so that; unlike the OP; I have some equity in them going forward. Perhaps the OP's car was worth less than he/she owes?

OP - you have to continue servicing the loan until the car sells.
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Postby x9200 » Sat, 22 Dec 2012 10:05 am

Having a 2nd through, probably they will give a 2nd cheque for the installment difference after the car is sold and the first cheque is just to offset the initial difference (if any) and give you this as it is simply more fair this way.

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Postby taxico » Sat, 22 Dec 2012 11:08 am

aargon wrote:...only found out yesterday when i called the bank. Assume the car is still under my name given the loan is still outstanding on it? or is it possible to transfer car ownership despite this?


possible but very unlikely, since you don't have ownership of the vehicle and i assume only in very odd circumstances would the bank sign away ownership of the car until they've been at least "assured" someone will be liable for the outstanding amount...

someone said "consignment" and i'll have to agree. in this case, why not dig up a picture or two of your car (if any) and post it on the local carmart website? it's not expensive.

demand is strong for second hand cars right now but i assume the dealer is not in a position to need to quickly sell your car since it's on consignment...?

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Postby offshoreoildude » Sat, 22 Dec 2012 1:02 pm

OP - what do you owe the bank and what is the paper value and body value? Once we know that we might have an idea of what's going on.
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Postby aargon » Sat, 22 Dec 2012 7:13 pm

JR8 wrote:Hassle? But you're not speaking to the people answerable to you.

I mean this politely and helpfully, but I oso want to maybe give some kind of jolt ah. - Are you totally clueless!? Are you afraid of speaking to them!? Call the car dealer and ask him what is happening with your car ah? Simple.

Until you have done that, no one here can say anything that will help you.

Do it, and come back with an update and I'm sure people will try and help you further, if that is what is needed.


mate, I'm not asking for help (not yet anyway).

and read the first and last sentence of my original post.

Merry Christmas!!!
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Postby Strong Eagle » Sun, 23 Dec 2012 2:16 am

x9200 wrote:Just for curiosity sake: how is it arrange then that you have a cheque in your hands and at the same time the loan is still with you so you have to pay the installments. Makes not too much sens to me. It's not a blank cheque I presume :)


Easy. I sold my car little more than 3 weeks ago. Dealer promised to pay off note and give me the difference. So, on Friday morning, dealer shows up. First thing we do is drive to loan office so I can watch him pay off loan.

Then, we drive to LTA. I transfer car to his name, and get my check. I would never do it any differently because you just cannot tell who the rip off artists are.

aargon - did you sign transfer forms? Were they completely filled out and signed by dealer as well?

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Transfer process

Postby christay » Tue, 25 Dec 2012 11:03 am

Dear all,

any motor vehicle that is financed by a bona fide financial institution CANNOT be transfered without the loan being completely paid off.

When you buy the vehicle, assuming you take a loan, the bank will "tag" the car electronically with the LTA.

Only when the loan is cleared, the bank will "release" the tag, usually within 24-48 hours of the payment being cleared. If the loan is cleared with cash / cashiers order today, the bank will release the tag the following working day, and LTA will permit the transfer.

When selling a car to a dealer, its important to establish an understanding of the process that the dealer will go through.

Most reliable dealers will:

1) Pay you a deposit
2) Write to the bank to get the exact amount owing on a particular date
3) Show you the bank's reply (a dealer's calculation will not cut it)
4) Collect your car with the balance payment to you. They will also sign a collection slip so you are no longer liable for any traffic offenses from the time of handover.
5) Proceed to the bank to pay off the loan immediately
6) Wait for the car to be untagged and transfer immediately.
7) Send you a copy of the receipt of the loan being paid off.
8) Assist you in canceling your insurance.

Once transferred, you will receive a letter from the LTA stating the vehicle is no longer yours.

There have been known cases of rogue dealers who do not have the bankroll, who will pay you the deposit, take possession of the car, and try to find a buyer, collect a deposit from the buyer, then get a short term loan from some other party to clear the loan, transfer the car in, and out so as to minimise the interest cost for such a facility.

The above scenario is not common, but happens.

I can't think of an easy way out other than to engage a lawyer to try and "compel" the dealer to complete the transaction. In effect the dealer has not paid for the car, and therefore, has breached the standard terms of a sales and purchase agreement whereby the agreement is only valid as long as the item has been paid for.

There is a recent thread on a similar case on the my car forum, and it apparently took a long time to settle it.

In the meantime, your car is running around the island (or beyond) on your insurance policy as any insurance company will not cancel a policy without evidence that the car has been transferred. If the dealer lets your insurance and road tax lapse, as the car is still under your name, these two offenses will technically be your responsibility, at least till you can prove to the authorities that it was a rogue deal.

I would get a lawyer to handle this to for you immediately.


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