14 May We found a private buyer for you. So, what happens next?
You must be wondering what happens next when we find a buyer for you. What should I do?
- Do I still relax and do nothing?
- What about my balance payment?
- What about my outstanding loan with the financial institution?
- Who does the transfer of ownership at LTA?
Basically, you really do not need to do much. We will handle everything for you so you can still sit back and relax.
Once the car price had been agreed between the buyer and seller, we will proceed to collect the deposit for the seller. (An agreement for the deposit will be drafted for both the buyer and seller).
The seller’s side
We will meet you up to pass you the deposit and an agreement for the deposit will be drafted. We will also brief you on what are the next steps;
- Outstanding Loans, if any; If there is any outstanding loans on the seller’s side, we will need the seller to sign a letter to request for the full settlement amount from the bank. Thereafter, with this letter, we will be able to get the exact full settlement amount. *The letter to request for full settlement will be provided by SGCARCONSIGN or you can find it under one of the articles on this website.
- Transfer of ownership with LTA; SGCARCONSIGN is an agent with the LTA that can do online transfer. However, the seller needs to request for a transaction pin from LTA either by logging in with their singpass to the LTA website at www.onemotoring.com.sg or going down to LTA personally. If the seller is a foreign passport holder or under the company; you have to go personally to LTA main office at 10 Sin Ming Dr S575701 to request for one. LTA will issue you the transaction pin letter immediately at their office. Once you have the transaction pin letter, you are ready to effect the transfer if there is no outstanding loan. *If there is any outstanding loan with any financial institution, the vehicle cannot be transferred even if you have the transaction pin letter as the bank will tag it as ”under finance” on the LTA online system.
- Handing over your vehicle; once the buyer is ready to take over your car, we will arrange for you to handover the vehicle. We will come or you can drive over to our office for the handover.
What to expect during the handover?
- The balance payment after deducting your outstanding loan. If your car has no outstanding loan with any financial institution, you be paid in full.
- Sign on LTA transfer form, also known as “M01”.
- Prepare all keys and owner’s manual, if any.
- An agreement will be drafted to list the payments made and the date/time of the handover.
- Personal insurance cancellation service; we can help you to cancel your insurance so that you can get some rebates from your insurer for the unused period of your insurance coverage.
The sale of your car is complete and thereafter, we will handover the car to the private buyer.
What happens after the handover to the private buyer?
We will settle your outstanding loan with your financial institution (if any) and do an online transfer with the transaction pin provided by LTA from the seller.
Frequent Asked Questions
- Deposit – Can I forfeit the deposit if the buyer changes his mind? You can only forfeit the deposit only if the buyer changes his mind due to personal reasons. If the buyer requires a car loan and is rejected by all the financial institution, then the deposit collected cannot be forfeited and have to refund fully to the buyer. However, if the seller had collected the deposit and changes his mind not to sell, then the seller will have to refund the buyer twice of the deposit paid to the seller on top of the deposit paid.
- Transaction pin letter – I am not in Singapore, can I authorized some else to collect on my behalf? Yes, you could. But you will need to arrange for a power of attorney to authorized whoever is going to collect.
- Transaction pin letter – What is that? It is a sealed letter given by LTA. Inside this letter, you will be able to see a unique alpha numeric password that would allow an agent with LTA to do an online transfer of ownership. This letter does not have an expiry date and can only be use once.
- Evaluation at inspection centers or workshops; Is it normal for buyers to request for an evaluation? Yes, this is normal. Normally, the buyer can only tell if there is a problem visually. Some buyers wants it evaluated before buying so that they can have a piece of mind.
- Full settlement; Why is my loan with the financial institution not settled first before the handover? Once the car loan is settled, it is irreversible. There are instances when the seller changes their mind about selling after the car loan had been settled by the agent or finance company. Thereafter, they were not able to pay the full settlement back to the agent or finance company and legal methods were resorted to get this money back. If you are still not comfortable, you can choose to settle the finance by yourself and we will come down with the full balance when we collect your vehicle. In this way, we will also not be worried about you changing your mind about selling the car.
If you have any further questions about this article, you can contact us directly at 61000200 or whatsapp to 93888166. We will assist you with whatever knowledge we have. Alternatively, you could leave us a comment below this article so that we can improve this article.