Need some advice about selling car

[neokenzo]

Hi ZTH-ians,

One of my friend is selling her car. Her car is still under bank loan. She and the buyer already agreed on price and now is finalising the sale of her car.
The buyer has never bought a car and has asked a car dealer to help him arrange everything. Loan as been approved. However, now the dealer wants my friend to sign the change of ownership form first then only he said that she will received the money. According to him, the buyer's bank will only release the money once my friend has signed the transfer of ownership form. This to me sounds a bit dodgy. Cause once she signs the transfer of ownership form, then whats stopping then from not giving the money to her? Is this standard practise? Can someone please advice whats the best way to complete the deal. My idea was to do it at the bank so that everyone is happy.

TiA.

 

[^pomen_GTR^]

done with bank's repesentative or not???

if there's 3rd (law/bank) person involved then shud not worry too much.....but if done without those 3rd person then maybe the seller shud check and verify buyers loan document (related) first)

 

[neokenzo]

This is what the dealer said how things will get done:

1. Seller and buyer signed all documents then submit to buyer’s bank for disbursement.
2. Buyer’s bank will contra the loan with the settlement in seller’s bank.
3. Then, seller’s bank will release the E-batal after buyer’s bank make full settlement to seller’s bank.
4. After get the E-batal, buyer’s bank will release the balance payment to Used car dealer
5. Used car dealer will pay u the bal payment and at the same time buyer’s bank will do the transfer name.
6. Seller can deliver the car to new buyer after transfer done.

Is this the normal practice?

My concern is the 2 parties (seller and buyer) is a private sale. The only reason why the used car dealer is involved is because the buyer ask him for help. So I don’t understand why the balance payment have to go through them. It should go to the seller no?

 

[YYC]

This is what the dealer said how things will get done:

My concern is the 2 parties (seller and buyer) is a private sale. The only reason why the used car dealer is involved is because the buyer ask him for help. So I don’t understand why the balance payment have to go through them. It should go to the seller no?

Because bank will only pay to its authorised dealer when car dealer is involved.

 

[neokenzo]

Thats the thing, seller or buyer is not from a car dealer.

So just because a car dealer handles the loan, it pays to the car dealer eventhough buyer and seller got nothing to do with the car dealer?

Apart from that, everything else is normal practise when selling a car?

 

[YYC]

That part you are in doubt is also the SOP when transacting through a dealer. That's the agreement between bank and dealer.

 

[DanzEterna]

supposed the buyer transfer the $$$ to seller 1st then only seller sign those forms....
get the buyer to show the LOU Letter Of Undertaking by the bank, proof that the bank has finance the buyer a certain amount of $$$.

simple, meet up somewhere....get the buyer to transfer the money on the spot, after that u sign the k3 form

 

[neokenzo]

supposed the buyer transfer the $$$ to seller 1st then only seller sign those forms....
get the buyer to show the LOU Letter Of Undertaking by the bank, proof that the bank has finance the buyer a certain amount of $$$.

simple, meet up somewhere....get the buyer to transfer the money on the spot, after that u sign the k3 form

This is what my friend wanted to do but was told bank dont release the money unless everything is signed first.

 

[DanzEterna]

has the bank confirmed this?