i submitted loan to Maybank Auto Finance for 30k loan with 5 year period. They want the previous owner to do full settlement before they proceed with the loan. They dont do contra anymore. Is this the current practice ? what about other banks.

i submitted loan to Maybank Auto Finance for 30k loan with 5 year period. They want the previous owner to do full settlement before they proceed with the loan. They dont do contra anymore. Is this the current practice ? what about other banks.

Yes this is true. There have been changes to the rules...If im not wrong about 2 years ago roughly... maybe more... Your car must be fully settled before you can sell it. This si to protect the interest of used car dealers, as these days we dont need them thanks to the internet.
So the banks, will willingly approve loans without advising the buyer that the sellers car must be fully settled, so when the seller says he cant fully pay the loan, the buyer needs to pay a cancellation fee with the bank... So its a win win situation.
Because you only have these options.

Option 1.

Seller hires service of a used car dealer to do invoicing and used car will settle the bank loan for you.. Then process the sale, then the buyer's bank releases the money to used car... any excess or shortage can be retrieved or paid to the used car dealer. This fee can range between 2k-5k , depending on the loan outstanding amount.

Option 2
Buyer cancels the loan due to seller unable to settle the car loan. But buyer will be charged with cancellation fee by the bank who approved his/her loan, this can be argued i believe if the bank approved the loan without asking/advising that the car must be cleared of any hire purchase. It will be a long and annoying fight

Option 3
Buyer and seller work out a deal to payoff the amount charged by used car for their fees. Maybe 50/50 etc.

Option 4
Seller clears the loan him/herself and wait for the disbursement by the buyers bank, you'll get back the cash
I hope this message reaches out to all sellers and buyers, because i feel this is really absurd. the way banks and the dealerships is playing around with the people. So before you get stuck in this cycle, PLEASE let your friends and family know.... if you are buying or selling a car, ALWAYS check if it has an existing loan, then advise the seller that it must be cleared before you apply for a new loan. Once you apply and approved, they win.

Hi guys. I am about to purchase a used car from a direct owner. As both me and the seller don't have any experience in doing this, I would like to seek advice from the sifus here.

Here's the plan:

I'll apply for a loan for this purchase. In the meantime the seller will take the car for a service inspection just to make sure the parts and components in the car are given the clean bill of health.

Once my loan is approved, the seller will then send the car over to Puspakom for a B5 and B7 inspection. Because the car has a non-JPJ compliant window tint installed, the seller will remove them before heading down to Puspakom.

Once inspection is passed, the documents will be submitted to the bank and the loan will be disbursed. And finally, both me and the seller will head down to JPJ and execute the name transfer process.

Question is, how long does it take for the bank to disburse the loan once Puspakom documents are submitted? Also, is there anything I've missed out in this plan?

Looking forward to the sifus' advice. Thanks in advance!

Much of it already covered by you, abt the loan approval once you submitted the B5 & B7 you need ask your loan provider & I believe it should be fast [ nowadays loan approval is very fast if you are qualified ~ you get wat I mean ? ]  but some loan provider insist you to use their runner to do the JPJ part which would be around rm200 for runner fee on top of the rm150 JPJ ownership transfer fee. Nego with them for the arrangemnent.......

quick question or need help i might add ... how to change ownership of the car, if the owner is no longer in malaysia ( going back to home country ), but i have been taking over the loan payment for more than a year ... any advice ??

guys , normally what is the procedure to sell car to USED CAR DEALER

loan left 6,500  , sell price agreed by both parties Rm21,500

dealer ask me to get copy of geran - > bring car to their shop -> puspkom inspection
once everything done , they will handover cheque

is it the correct way ? for inspection , take 1 day only right ?
and for cheque , once i hand over my car , i'll straight away receive my cheque is it ?

one more question , for full settlement , normally , shop will make payment and deduct from total amount or i need to do it myself ?

i will like to purchase a second vehicle from second hand car dealer
cash price 49k but loan price 52K
1. why there is different between cash and loan price?
2. They charged
    name transfer RM 375
    Puspakom RM 250 
    Invoice for RM 850 ( what is this for? )

1) rm52k-rm49k = rm3k ~ standard fee when you buy from a used car company, if not their Salesman eat grass ?

2) Those are "admin & runner fee"

Unless you buy from a "private seller" , else most used car co will charge you Item 1 + Item 2 or either 1.

Its a standard industry practice.

Want to ask, can i sent my car for inspection to Puspakom first without buyer (cash) there ?

The SOP is ~ Seller send the car to Puspakom to get certified & once passed the Cert will be valid for 30days. If you do not do any Ownership within the 30days, you need get another certification when you want to do OT later.

Buyer from different state, may not available. Or we both must be go Puspakom together ?

That cert can be used to do OT all over the JPJ's in MY

First time seller, noob abit 

And Saturday (Cheras branch), many people ?

Usually Sat will have less ppl compared to normal days.........

Got any runner here ? Charge how much ?

Why feed those runners when you can do it yourself

Thanks, about insurance how ? Since mine going expired Dec soon. Do i just let it go ?

I heard can transfer NCD to new car ?

Hi there,

My grandfather owns a car but unfortunately he has passed on. I'm thinking of selling it as it is just sitting under the sun and there are people inquiring about us selling it. He didn't put in his will who does the car belongs to. Is there a way to transfer the ownership to me?

The Ownership Transfer can actually be done, First you need to get the Dead Cert of your Grandfather and then do the OT to the closest next of kind, I believe its best you go enquire from JPJ the complete procedure..........

If you ask Runner to do it, they will quote you a bomb of a price.............

Thanks, heard from alot of friends and relatives that its a tedious process but whatever i can get for the car... its better than letting it rust and being an eyesore to the neighborhood.