Sambung bayar / continue loan cars

[the_devil]

Hello all. Need your expert opinions / suggestions. The story goes like this, some tme back a very close fren of mine having some trouble finacially. End up maxing out his credit cards, till unable 2 pay off the debts. Resulting in being blacklisted by banks. Now few yrs downthe road, has a stable job n started 2 repay back banks. So as we know, blacklisted cant get any loans from bank, now he came across those sambung bayar / continue loan cars! Yes, touch wood so far no problem as he has been paying the bank n driving the car. But im afraid later if problem arise how? My question is, is there any way to safe guard this 'small' investment? (deposit paid). Wut if the owner suddenly wanna take back the car? Any ideas? Ps your replies highly appreciated. Thanks in advance.

 

[SataniC]

Always...ALWAYS document purchase agreement drafted by certified lawyer for cases of kereta sambung bayar... friend friend family family don't care... this to safeguard against such cases.. such agreement also would be as security for the seller in case car was used for illegal stuff or summons... to show that he had sold said car to said buyer...

 

[basikal_pancit]

If I am not mistaken, it is not possible to create another contract on the car coz the car is still charged to the Bank for the loan facility under the owner's name. I think this topic have been discussed so many times before and remembered that someone pointed out that it is 'illegal' to even create another arrangement until the loan is settled.

Correct me if i'm wrong. Just my 2cents

 

[the_devil]

Always...ALWAYS document purchase agreement drafted by certified lawyer for cases of kereta sambung bayar... friend friend family family don't care... this to safeguard against such cases.. such agreement also would be as security for the seller in case car was used for illegal stuff or summons... to show that he had sold said car to said buyer...

Ah, ic. Thanks 4 the info.

---------- Post added at 09:26 PM ---------- 6 hour anti-bump limit - Previous post was at 09:24 PM ----------

If I am not mistaken, it is not possible to create another contract on the car coz the car is still charged to the Bank for the loan facility under the owner's name. I think this topic have been discussed so many times before and remembered that someone pointed out that it is 'illegal' to even create another arrangement until the loan is settled.

Correct me if i'm wrong. Just my 2cents

No offense bro, if it is so illegal, y do we see ppl advertise looking for sambung bayar ppl? Theres a prancing horse 4 sambung bayar in mudah also! Crazy...

 

[YYC]

You can have any private agreement on the use of the car outside the hire purchase agreement, right? No problem. But as far as the bank concerns, the original hirer bears the legal liability and responsibility under the hire purchase agreement. You can charge the car to any other but the 1st charge is always prevail. The bank is still the true owner.
The previous owner and your friend should have made an verbal/written agreement on that car. So just settle among themselves if anything goes wrong. The bank won't give a shit and would pull back the car to recover the money.
Correct me if I am wrong.

 

[LesleyAprotto]

From the legal point of view, the car belongs to the registered owner...

My advice is NOT to sambung bayar...

Because the risk outweighs the advantage...

Many became victims already....

So dont repeat mistakes thousands other made...

Unless of course you wish to join the long list of victims too...

 

[the_devil]

From the legal point of view, the car belongs to the registered owner...

My advice is NOT to sambung bayar...

Because the risk outweighs the advantage...

Many became victims already....

So dont repeat mistakes thousands other made...

Unless of course you wish to join the long list of victims too...

Mind sharing bro? Wut r the risks vs advantages? Mind eleborate? :proud:

 

[LesleyAprotto]

Mind sharing bro? Wut r the risks vs advantages? Mind eleborate? :proud:

THE ADVANTAGES

(1) You can use the owners name and continue the loan...
(So if your name is blacklisted or not qualified to take that high loan as the loan is already given)

(2) Summons will go to the registered owner, thence you will think you are protected against paying any summons

(3) Also normally the down payment is minimal amount so its looks attractive..

THE RISKS

(1) You may be helping the owner to pay his loan, when the 9 years loan is about to settle, he can
anytime claim ownership of that car.
He will use the slightest excuse to blame you for the traffic summons and say...
"Aiyah you cause me a lot of problem la, never mind la i take back the car lah..."

(2) Legally if you take to court, you will lose because he is the registered owner!
I have heard cases where the registered owner got spare keys, drive away your car and sell it to
used car dealers the next hour....

So if you STILL want to take chances its up to you...!

---------- Post added at 11:37 PM ---------- 6 hour anti-bump limit - Previous post was at 11:17 PM ----------

OTHER RISKS

(1) The owner may be using his name on many other cars, rental cars etc
So the accumaled summons & blacklists may run into hundreds pf summons.
So when the JPJ blacklist his IC number, your car which is under his name may not be allowed to renew roadtax, unless and until all summons are paid. Are you willing to pay for ALL his summons in order to renew your roadtax?????????????????

(2) The owner may also become bankrupt.
And therefore your car cannot be transfered because of his bankruptcy case.
Are you willing to settle his bankruptcy amount in order to have the name changed????

So its best not to even think of SAMBUNG BAYAR in the first place..
As i said many had been victimised but there will be many more jumping into the "headache" scenario even when others advised against doing so...

---------- Post added at 11:40 PM ---------- 6 hour anti-bump limit - Previous post was at 11:37 PM ----------

Other Risks

Owner bankrupt - cannot transfer name after finishing paying the loan

Owner blacklisted - cannot renew roadtax because owner other cars got many summons...

 

[the_devil]

hmmm... icic. thanks a lot 4 sharing lesley... but unfortunately, like i mention earlier, the damage already been done. (fren already took the car!) so was asking around c is there anyway 2 safeguard this small investment. i doubt the 'real' owner would return back the deposit paid... sigh...

 

[Izso]

Instead of sambung bayar, ask your friend to borrow money from relatives or something and bayar THEM every month with interest and just buy the car over from the current owner. Change car owner name and all and forget about bank loan.

 

[cmng]

Since already commit on it
Treat it as leasing..
expect you gain nothing from end of the day and if lucky all can changed to your friend name without any issue

but my suggestion. forget it.
drive a cheapo car than take this risk lo

 

[the_devil]

Instead of sambung bayar, ask your friend to borrow money from relatives or something and bayar THEM every month with interest and just buy the car over from the current owner. Change car owner name and all and forget about bank loan.

point taken, thanks... will suggest to him later...

---------- Post added at 11:25 AM ---------- 6 hour anti-bump limit - Previous post was at 11:21 AM ----------

Since already commit on it
Treat it as leasing..
expect you gain nothing from end of the day and if lucky all can changed to your friend name without any issue

but my suggestion. forget it.
drive a cheapo car than take this risk lo

another advantage vs risk! yea, like lesley said... thanks

 

[DanzEterna]

only sambung bayar with FAMILY members, but not with outsiders.

 

[vr2turbo]

Charged to bank cannot do anything. Maybe check with Lawyer, to see whether can draw personal contract that owner has sold the car to your friend and that your friend is paying the installments. Get owner to sign the car transfer forms to your friend, then when loan is finished, bank issue release letter, your friend can transfer the ownership to himself.....my 2 sen

 

[papagoines]

I'm also blacklisted who now my financial life is stabilizing slowly....

at first I was tempted to sambung bayar then most of my frens advise me against this... instead, they told me to search for 2nd hand car dealer can help for the loan....

for example, on mudah you can find lots of cars that blacklisted can apply loan.... just that have to fork a bit more for the downpayment. For example, based on my current financial strength the below ads are right for me
http://www.mudah.my/Proton+Iswara+1+3+M+LMST-17092131.htm?last=1

It maybe not a prancing horse, but a work horse nonetheless... the downpayment is high in my case but not as high that I can ask for help from a few relatives (as per Iszo says) and the car is perfect for my family of three...

so now I working my way to get at least RM5k for downpayment and I can start searching for the cars like in that ads....

sorry if my rants are not on subject... just felt compelled to share