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Car Purchase Complicated Procedure - Need Professional Advice

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  1. #1

    Car Purchase Complicated Procedure - Need Professional Advice

    Hi Good Afternoon Friends

    I am interest to purchase a car from a dealer who said that the car is owned by his own friend and it is registered under company name. Car value is about 450K , it 277K still under mortgage with OCBC Bank. He said to me that if car passed the HKMI Test , I will need to bring along cashier order on same date and under bank name will need to settle the outstanding payment of 277K with bank . After the bank procedure they will release the car certificate to me and allow me to go TD to transfer of car ownership with this dealer after my insurance ready.

    I have told dealer only way to settle the payment with bank is by you or the car owner. He replied car owner will issue guarantee letter to me on this car transactions to speed up the process.

    Now my question is what protection I have or should I ask the car owner before I take this action or I should not, what documents should I ask them to prepare on my name which can legally protect me, incase I paid the bank and they change the mind.

    Now as per the deal the procedure he said is

    1) He will drive the car to my car park for HKMI test and leave the car with me and keys,
    2) He will need me pay 10% deposit if car passed the test because he said car is with me he need protection too.
    3)He need me to prepare 2 collection orders
    a) Bank name to settle the mortgage
    b) Balance payment to car owner under company after transfer of ownership

    He want me to go to bank immediately after HKMI test and settle payment. But problem is HKMI test I will need time to buy car insurance & without it I will not able be able transfer name. So if I settle payment to bank on same day after HKMI and not able to transfer the ownership on the same day , I will be at risk even though car is with me. Paper is still under their name for me is like a tissue paper.

    I would need advice how should how deal with this , any one can advice me.


    MIllion thanks


  2. #2

    Join Date
    Feb 2005
    Location
    Manchester, UK
    Posts
    7,789

    contact insurance and get a quote on the insurance required
    once test is passed, quickly deposit the money into the insurance company and they will send you a cover note very FAST by email.
    Use email cover note to transfer car at TD, you can show them the email.
    Get the test arranged early in the morning so you have plenty of time to get the insurance cover note sent to you fast.