Selling Car Full Settlement

[ryukeong]

Hi there everyone,

I am ryukeong here, and I have questions that needed help for answers, hope anyone can help.

My questions is regarding about car loan settlement, for example;

Loan – RM10000 for 2 years
Interest – 5%

Total Interest + Loan = RM11000
Monthly Installment – RM458

Ok, lets say I have paid installment for 12months, and I want to sell my car (and made settlement to the bank), so does the interest for the (balance 12months installment) be deducted or I still have to pay for it too?

(Please let me know if I had any mistaken)

Another question about selling of my car personally, what do I have to do if buyer wanted to take a loan?

Last questions, I notice there are a way for selling car ‘Continuing Installment’, mean buyer will pay the installment balance for the seller right? Any procedure required to do? Coz what if buyer didn’t pay the installment / received any saman, would it come back to the seller? And also how about the insurance?

Thanx for reading…..and hope will get some help…

 

[joejef]

answer

bro, the loan of 10k, interest 1k which means the interest is 500 per year,so let say after 12 months installment, u wannt to fully seattle the car u probaly still have to pay 5500.
if u want to sell the car your self is fine, but if your buyer want to take high loan its gonna be a problem, cos if u walk direct to the bank( its call direct case), the bank probaly give u a 60-70% loan.if go through used car u probaly can go up to 100% loan(depends on type and year made of the car) but of course used car gonna charged u a fee. further more if u doit ur self dont forget the running around jpj for transfer name, puspacom inspection, insurance, r.tax.
lastly regarding give ur car to someone to sambung bayar, my advise is if ur not desperate dont do it. it will cause alot of problem later on, like what if he got summon, didnt pay ur installment, got in to a car accident, legally there is no jpj or bank form for such arrangement.
thats what i know. regards.

 

[sakuraguy]

Thread moved to Car Talk forum, due to no selling involved and only knowledgable questions.

Thnx

 

[prozac]

I just did a full loan settlement last week. The balance doesn't include the interest for the remaining months, nor will it follow the "amount due" in your repayment schedule.

To find out how much it will cost for a full settlement, just check your loan docs for the branch phone number. Then call up the bank and ask "How much for a full settlement for car with reg no. xxx xxxx"

As for continuing loan, if i'm not mistaken whoever that's buying it must go through the usual financial background checking procedure first before proceeding.

 

[kyspeaks]

There is a loan settlement calculator on autoworld.com.my that I find pretty useful

 

[b00n]

usually there will be a discount on the interest portion. But they ofcouse wouldn't forgoe the total interest as the finance institute still wants to earn money.
Like what was mentioned; pls just call up ur finance company and ask. Maybe you could ask them to calculate line by line to you on why the "amount".

 

[putra4767]

car

For a full settlement, you only pay interest until how many months you
paid for ur car. the remaining is interest free.

Eg.

RM 10,000.00 Car / 5% interst / 5 yrs repayment

Loan total = RM 10,000.00
Interest per year = RM 500.00
Interest for 5 yrs = RM 2500.00
Monthly Payment after interest = RM 208.333333 x 60mths
Total payment after 5 yrs = RM 10,000.00 + RM 2500.00 = RM 12,500.00

Lets say you paid for 2.5yrs (30mths) & wanna full settle :

Interest per month = RM 2500.00 / 60mth (5yrs) = RM 41.6666667

= RM 283.333333 x 30mths = RM 6249.99999 (Installment paid with interest)
= RM 10,000 (loan amount) + (RM 41.6666667 x 30mths= RM 1250.00)

= RM 10,000.00 + 1250.00 = RM 11,250.00 - RM 6249.99999

= RM 5000.00 (Will be ur Full Settlement after paying for 30mths)

 

[sr_2321]

Selling Car

Hi all,

i am abt to sell my car. i have a buyer who is paying 40% cash 60% loan. both of us will go to the bank and do the full settlement (40% he and 60% me). NOW my question

i) can i sign all the transfer document prior receiving the balance 60% frm the bank?
ii) when do i pass him the car?

The buyer wants me to pass him the car once he pay the 40% as he is car-less at the momment. Also the buyer engage a used car person to do all the running but no offical receipt will be issued by the used car. AND the used car will charge me 3% interest frm the car selling price if i want them to do the full settlement.

Hope some one can explain me the proper procedure.

 

[hon_cs]

whether you are required to pay or not for remaining interest if do early settlement is all depend on finance companies. call them up and ask.

I just sold my car. Some guides for you:

1) do only puspakom inspection after buyer loan has been approved because if u do it too early, the certificate will expired and you need to re-do again. inspection money is pay by buyer.

2) buyer and seller go bank to sign some docs. then bank will release money to seller.

3) go jpj to do ownership transfers. before go jpj, buy wang pos Rm100. make sure buyer pays for it. before this, download and fill up the relevant forms.buyer and seller used the same forms. if buyer and seller go jpj, no need to do sumpah. if you are staying in selangor area, go Padang Jawa branch during morning because very very less ppl. less than 20min can kautim.
http://portal.jpj.gov.my/v5/index.php/en/ownership-transfer-guide/tukar-hak-milik-secara-sukarela

4) after everything done, collect watever amount buyer has to pay and you surrender your car.