WTK: buying a vehicle which is on loan to the bank???

Dragular · Postby **Dragular** » September 12th, 2014, 6:39 pm

Good day tuners, interested in buying a vehicle but the guy has a loan with RBC for the vehicle. He wants to sell the vehicle to pay off the loan but my issue is that if i make the cheque out to him would he really clear the loan or can i make the cheque to the bank and balance to him.

Anyone has any experience buying a vehicle with a situation like this?

Kenjo · Postby **Kenjo** » September 12th, 2014, 7:19 pm

horse the car belongs to the bank!!!
you need to pay the bank first and then give him the balance
contact the bank and he is supposed to inform them.do not give him the money direct at all!!!!

hyperdude · Postby **hyperdude** » September 12th, 2014, 7:26 pm

what you can do is go with the guy into the bank and speak directly to the loans officer
tell them of the transaction that the two of you want to enter,make sure you have all arrangements in writing
Do not buy the car/pay for it before the loan is paid
that is illegal...
and only you stand to loose...

Postby **toyolink** » September 12th, 2014, 7:46 pm

The seller /vendor must present a settlement letter and undertaking from the bank that they are aware of the pending sale.The letter from the bank would stipulate their requirements to allow for release of mortgage on the vehicle.
The bank must be a party to the sale.

Kenjo · Postby **Kenjo** » September 12th, 2014, 7:59 pm

Why is he selling the car though ? People who sell fast and may not be able to afford the car might not be too uptodate on maintenance

Dragular · Postby **Dragular** » September 12th, 2014, 7:59 pm

thanks for the advice guys. I will also involve my lawyer if i decide to go further

Kenjo · Postby **Kenjo** » September 12th, 2014, 8:18 pm

you dont need your lawyer , you just need the bank directly involved.at least you know he wasnt trying to outsmart you and he told you up front. i hope you didnt find out only on the title search the the banks generally do. if you were paying cash he could have outsmarted you but generally the name of the bank would be on the insurance certificate also

De Dragon · Postby **De Dragon** » September 12th, 2014, 10:23 pm

If the seller is on the up and up, he should have no problems with the bank clearance. The bank would collect their outstanding payment plus interest, and any balance would be paid to the seller. I did this already with a vehicle purchase.

kg494EJ-1 · Postby **kg494EJ-1** » September 13th, 2014, 5:50 pm

Kenjo wrote:you dont need your lawyer , you just need the bank directly involved.at least you know he wasnt trying to outsmart you and he told you up front. i hope you didnt find out only on the title search the the banks generally do. if you were paying cash he could have outsmarted you but generally the name of the bank would be on the insurance certificate also

As Kenjo stated involve the bank directly, as the payment (cheque) for the vehicle is to be made in the bank's name not the seller if there is any excess they will work it out with him/her. The seller is suppose to notify the bank in writing to the pending sale and await their input.

If you don't involve the bank you will be unable to transfer as the vehicle cc will be on the banks name, insurance unless the seller has an all in one financing,should be in the owners name. Recently purchased a vehicle that was on loan myself and trust me ensure the bank is involved.

DVSTT · Postby **DVSTT** » September 13th, 2014, 8:06 pm

Kenjo wrote:horse the car belongs to the bank!!!
you need to pay the bank first and then give him the balance
contact the bank and he is supposed to inform them.do not give him the money direct at all!!!!

This.
You'll get a receipt immediately and a letter, usually in the coming weeks.

10-01 · Postby **10-01** » September 14th, 2014, 4:38 pm

bought a vehicle like this already the entire cheq is paid to the bank , the bank issues you the buyer a letter stating they no longer hold the vehicle , and you have to pay for a mortgage release , or if you do a search you will see the vehicle is still on loan

very easy process can be done within 1 hr

Dragular · Postby **Dragular** » September 14th, 2014, 6:19 pm

Cool. going in the bank in the morning with the seller. Thanks for all the info!

Sunic · Postby **Sunic** » October 20th, 2014, 10:16 pm

Hmmmm

marvin23 · Postby **marvin23** » March 12th, 2015, 11:53 am

good info here.

true story,last week i saw a nissan wingroad on a very popular trini cars site. car looked good, price was good also.
i went to see the car in person and was very impressed. i obtained a copy of the c.c from the guy(vehicle was in his name/he was the second owner). we made arrangements to meet this friday (13th march) to finalise the deal. the guy for some strange reason called after and requested we do an account to account transfer instead of a manager's cheque...i dont know why

after finding this exact post on tuner, i decided to call my friend who works with an attorney, and request a search on the vehicle.......i remembered the owner saying too that he was out of a job for a while...would you believe the vehicle is mortaged with a balance of 72k....to the first owner :shock:

...i'm still counting my lucky stars..

point is ppl please be careful with your hard earned money....do not take anything for granted...the search cost me $400 and it only took a day...

Slartibartfast · Postby **Slartibartfast** » March 13th, 2015, 8:53 am

Damn.... good info here. One question, if I car is bought on loan, whose name is the cc in? The bank or the owner? Also, is this the same for new and used cars?

SMc · Postby **SMc** » March 13th, 2015, 8:59 am

^^The owner's name will be on the CC as they are responsible for it, including its insurance, roadwortyness etc

megadoc1 · Postby **megadoc1** » March 13th, 2015, 9:05 am

^so true ,yes the car may be on a loan but its always in the persons name same for the insurance..
occasionally,I transfer repossessed cars to new owners and when I do I have to get it transferred to the lending bank's name first then to the new owner

Slartibartfast · Postby **Slartibartfast** » March 13th, 2015, 9:10 am

Scene. Thanks for the info. Good thing last time I bought a car I could only afford one that was so old I'm sure the bank would not have had it out on a loan.

supercharged turbo · Postby **supercharged turbo** » April 22nd, 2020, 8:57 pm

How do you go about doing a search on a vehicle to make sure there isn't any outstanding loans on it?I'm contemplating the purchase of a relatively new vehicle and the owner hasn't given any indications that there is a loan on the vehicle but just to be on the safe side.

88sins · Postby **88sins** » April 22nd, 2020, 9:23 pm

supercharged turbo wrote:How do you go about doing a search on a vehicle to make sure there isn't any outstanding loans on it?I'm contemplating the purchase of a relatively new vehicle and the owner hasn't given any indications that there is a loan on the vehicle but just to be on the safe side.

Go to AV Knowles, give them the vehicle reistratuon number, current and previous owners names, and any other relevant information that you have & they will do a search for registered mortgages, liens, etc., and provide you with a report.
Last time I paid for one it was about 400 iirc.

Postby **nismodriver** » April 23rd, 2020, 1:07 pm

I use these guys.
Title Searches Limited
+1 (868) 756-1793

I do online transfers to their account, and send pictures of the Certified copy etc.
They email the report.
So everything is done online

supercharged turbo · Postby **supercharged turbo** » April 23rd, 2020, 1:08 pm

How long before you get back the report?

88sins · Postby **88sins** » April 23rd, 2020, 1:16 pm

Depend on how far back they have to search from, which is a product of the number of previous owners of the vehicle. On average, no more than about 3-5 days

medalist · Postby **medalist** » April 23rd, 2020, 7:02 pm

Av Knowles. Has different packages at different prices. Best to call and find out price. Min feedback time 24hrs then 2days and so on.

Their checks are only for loans though not accident history.

TrinbagoMan · Postby **TrinbagoMan** » April 23rd, 2020, 9:06 pm

nismodriver wrote:I use these guys.
Title Searches Limited
+1 (868) 756-1793

I do online transfers to their account, and send pictures of the Certified copy etc.
They email the report.
So everything is done online

Price??