Selling My Car to Buyer Obtaining a Bank Loan. Is this Process Described Normal?

[jeffandgop]

Selling my used car.  No liens, etc.  Buyer has to get a bank loan to finance the purchase.  Bank rep came yesterday to check my car and verify there VIN. Bank rep said the process is for the Seller, Buyer & Bank Rep to go to the DLT where the Buyer transfers car ownership to the Bank via recording the transfer in the Blue Book.  No money from the Buyer/Bank to the Seller during this transaction. Seller, no longer the owner of the car, walks away with the updated Blue Book and the car at this time and Buyer's new passbook (see next para.).

Then, in a few days time, the Bank funds the loan amount to the Buyer, Buyer having earlier created a new account with the Bank for the bank loan.  The account passbook and ATM card has given to the Buyer at the DLT when the Blue Book is updated.  Once the bank loan money is in the account then the Buyer will withdraw the amount, give to Seller, who then turns over the Blue Book and car to the Buyer.

 

Is this the normal process? Changing the ownership of the car to the bank and then the Seller waits for the money to be paid in good faith?

Edited December 28, 2021 by jeffandgop

[jonny on the spot]

Its quite amazing how they have managed to turn a simple transaction into this time wasting epic.

Im not sure if this is normal but dont let go of anything before you are paid mate. 

If the bank change their mind about the loan somehow the onus will inevitably fall on you to recover your car. Its never their problem.

[ezzra]

I wouldn't sign a transfer of the car to anyone unless i have a cashier cheque in my hand bearing my name on it, don't be a part to any other convoluted sell-buy scheme..

[jeffandgop]

Gentlemen:

 

With all due respect, I am not seeking advice on HOW it should be done.  My posting would indicate I am questioning the process as I laid out and asking persons who KNOW whether this is normal in Thailand or not.  Alternatively, if you have specific EXPERIENCE selling your car to a third party who had to obtain a bank loan to purchase the car and their process was different, then I would appreciate those specifics.

[4MyEgo]

7 minutes ago, jeffandgop said:

I am not seeking advice on HOW it should be done.

If I told you it was normal, would you proceed ?

 

Sometimes people give out advice when things don't sound right regardless if you asked for it or not and it sounds like great advice to me, suffice to say people you don't even know are watching your back.

 

The above said, why don't you ask a bank, and then you will get the answer your looking for, with all due respect. 

 

Edited December 28, 2021 by 4MyEgo

[jeffandgop]

6 minutes ago, 4MyEgo said:

If I told you it was normal, would you proceed ?

 

Sometimes people give out advice when things don't sound right regardless if you asked for it or not and it sounds like great advice to me, suffice to say people you don't even know are watching your back.

 

The above said, why don't you ask a bank, and then you will get the answer your looking for, with all due respect. 

 

If I told you it was normal, would you proceed ?  Yes.  And thank you for your input.

[Guest Isaanlife]

Our buyer viewed our truck first, took some photos, VIN,  got a bank loan and came to pick up the vehicle with cash. Once we saw he had the cash we went and had the title changed over. We never met with anyone from the bank.

[jeffandgop]

30 minutes ago, Isaanlife said:

Our buyer viewed our truck first, took some photos, VIN,  got a bank loan and came to pick up the vehicle with cash. Once we saw he had the cash we went and had the title changed over. We never met with anyone from the bank.

What bank and when did this occur?  Thanks!!

[jeffandgop]

Just now, jeffandgop said:

What bank and when did this occur?  Thanks!!

Sounds like the loan was given without the truck being collateral or any lien against the title by the bank....

[Guest Isaanlife]

48 minutes ago, jeffandgop said:

What bank and when did this occur?  Thanks!!

I have no idea what bank they used?

 

Couple years ago.

 

We didn't get asked to sign anything until the buyer showed up with the cash, then we went to an office somewhere to get the paperwork all signed over. Never near a bank the whole process. Once the papers were signed over, he handed over the cash right there in the office and we gave him a ride back to our house to pick up the truck.

 

[Kwasaki]

5 hours ago, jeffandgop said:

Is this the normal process?

That's not what we did selling a car sounds like buyer has no collateral.

What we did was :-

Buyer gets money from wherever.

Buyer gives seller the money.
Seller then signs 2 transfer papers from DLT and gives blue book to buyer.

Buyer then goes and gets blue book in his name.

[chuang]

5 hours ago, jeffandgop said:

Gentlemen:

 

With all due respect, I am not seeking advice on HOW it should be done.  My posting would indicate I am questioning the process as I laid out and asking persons who KNOW whether this is normal in Thailand or not.  Alternatively, if you have specific EXPERIENCE selling your car to a third party who had to obtain a bank loan to purchase the car and their process was different, then I would appreciate those specifics.

Explosive

[Srikcir]

"paid in good faith"

Doesn't appear good faith is involved from the seller's viewpoint.

Transfer to buyer isn't initiated until payment by buyer to seller is made. Until then the seller possess both the vehicle and Blue book. If there's any good faith it's the expectation of the buyer that payment results in quick transfer.

[jeffandgop]

10 minutes ago, Srikcir said:

"paid in good faith"

Doesn't appear good faith is involved from the seller's viewpoint.

Transfer to buyer isn't initiated until payment by buyer to seller is made. Until then the seller possess both the vehicle and Blue book. If there's any good faith it's the expectation of the buyer that payment results in quick transfer.

I'm the Seller...are you suggesting that my Q is indicating a lack of "good faith" on my part?

[TheFishman1]

Seems like a few people have giving you good advice or you reply sounds awfully arrogant why don’t you go to your bank and ask them what the procedure is instead of asking strangers here then you’ll know for sure sounds awfully fishy TIT

[jeffandgop]

4 minutes ago, TheFishman1 said:

Seems like a few people have giving you good advice or you reply sounds awfully arrogant why don’t you go to your bank and ask them what the procedure is instead of asking strangers here then you’ll know for sure sounds awfully fishy TIT

You are not understanding the limited scope of my query.  I know I can go to MY bank and ask what THEIR process is.  I know what the prospective Seller's bank process is- a different bank than mine.  And we all know from experience that how processes are defined are not always what occurs.  That is why my question is- and remains- has anyone had an experience with the process I have described?  I am not asking for any other advice.  I am fully acquainted with what is the experience most of have had- money first to the Seller then the transfer of the property or goods to the Seller.  This is the opposite.  That's why I am "asking strangers" if they have had a similar experience. Nothing more. Nothing less. Not eliciting opinions from anyone that hasn't actually gone through the process I have described in my original posting.  Nothing arrogant.  Just trying to focus the conversation.

[jeffandgop]

35 minutes ago, Srikcir said:

"paid in good faith"

Doesn't appear good faith is involved from the seller's viewpoint.

Transfer to buyer isn't initiated until payment by buyer to seller is made. Until then the seller possess both the vehicle and Blue book. If there's any good faith it's the expectation of the buyer that payment results in quick transfer.

This is where you got it incorrect.  The process I described in my original post is that I am being required to transfer to the Buyer title to the car BEFORE reaching any money- in fact, the process will require I wait at least 24 hours after transferring the title to receive the payment for the car....it is me, the Seller, that the transfer results in a quick payment.

[Yewbzee]

Are the number of buyer's so rare here that you are considering signing away the title of an expensive asset before receiving any payment first?

 

I appreciate you are trying to find out if this process is normal but seriously use your common sense and play out the "what if' scenarios. 

[Peterphuket]

Sure this is normal, may I remind you TIT.

The same happens to me about a year ago when I sold my car.

And also to mention, they make many copies from my passport and have to sign it a million times.

And yes I was forced to open an account with that bank.

Terrible.

Edited December 29, 2021 by Peterphuket

[Liverpool Lou]

10 hours ago, Isaanlife said:

Our buyer viewed our truck first, took some photos, VIN,  got a bank loan and came to pick up the vehicle with cash. Once we saw he had the cash we went and had the title changed over. We never met with anyone from the bank.

The buyer in the OP is probably asking the bank to finance it as opposed to obtaining a (probably unsecured) personal loan as your purchaser likely did.  That would explain the bank's interest in the car as it would be taking the title.

Edited December 29, 2021 by Liverpool Lou

[jeffandgop]

11 hours ago, Liverpool Lou said:

The buyer in the OP is probably asking the bank to finance it as opposed to obtaining a (probably unsecured) personal loan as your purchaser likely did.  That would explain the bank's interest in the car as it would be taking the title.

Correct.  And the bank is using the auto as the collateral requiring the car to be in the Buyer's name BEFORE giving the Buyer the loan to pay me, the Seller....at the time of the Blue Book Transfer to the Buyer's name, I will be retaining/possessing:

1. Buyer's passbook of the account Buyer had to open per the bank which will deposit the loan amount into the account.

2. The "sold" car's Blue Book.

3. The car itself.

 

Only after the bank has put the funds into Seller's account (24 hours after the Blue Book transfer) and it is subsequently withdrawn and given to me will I turnover/release to the Buyer the Blue Book and the car.

[Orinoco]

Not the way i do business with Thai people.

But as they say,  up to you

[Ralf001]

1 hour ago, jeffandgop said:

Correct.  And the bank is using the auto as the collateral requiring the car to be in the Buyer's name BEFORE giving the Buyer the loan to pay me, the Seller....at the time of the Blue Book Transfer to the Buyer's name, I will be retaining/possessing:

1. Buyer's passbook of the account Buyer had to open per the bank which will deposit the loan amount into the account.

2. The "sold" car's Blue Book.

3. The car itself.

 

Only after the bank has put the funds into Seller's account (24 hours after the Blue Book transfer) and it is subsequently withdrawn and given to me will I turnover/release to the Buyer the Blue Book and the car.

Would have thought the book transfer to the bank, not the buyer.

[Gottfrid]

16 hours ago, jeffandgop said:

Nothing arrogant.

Yes, it is a lot of arrogance from your side. People here are telling you how they have been selling their cars and how they look at the problem at hand. Just live with it and make up your mind after the information given to you. As another choice you can just wait until a person answers that have made the same kind of transaction. The problem, though, is that you are asking for an experience from people that is so far off normality, that there probably does not exist such person. I would never do a sale that way, and as I understand it, that´s what people hear trying to help you also says.

[lom]

On 12/29/2021 at 5:01 AM, jeffandgop said:

Then, in a few days time, the Bank funds the loan amount to the Buyer, Buyer having earlier created a new account with the Bank for the bank loan.  The account passbook and ATM card has given to the Buyer at the DLT when the Blue Book is updated.

What kind of security for you as seller is the buyers passbook if the buyer also gets and keeps an ATM card for the account?

[jeffandgop]

8 minutes ago, lom said:

What kind of security for you as seller is the buyers passbook if the buyer also gets and keeps an ATM card for the account?

I also keep the ATM card....

[ezzra]

Hey buddy, do us all a favor and next time when you have a question that you only want to hear what you want to hear and confuse everybody, take it somewhere else will you?...

[itsari]

4 minutes ago, ezzra said:

Hey buddy, do us all a favor and next time when you have a question that you only want to hear what you want to hear and confuse everybody, take it somewhere else will you?...

A presumptions remark . 

You run into trouble when assuming all agree with you . 

The man posting the question could be more polite I must say .

[jeffandgop]

33 minutes ago, Gottfrid said:

Yes, it is a lot of arrogance from your side. People here are telling you how they have been selling their cars and how they look at the problem at hand. Just live with it and make up your mind after the information given to you. As another choice you can just wait until a person answers that have made the same kind of transaction. The problem, though, is that you are asking for an experience from people that is so far off normality, that there probably does not exist such person. I would never do a sale that way, and as I understand it, that´s what people hear trying to help you also says.

What is arrogant is your posture that I should welcome unsolicited advice. You, as some others, have not cared to address the specific question which is not "What Would You Do" nor "How Would You Do It" or "What is Your Opinion on this Sales Process". Because this process is different than the standard, I have asked the community only if anyone has gone through the same or if they know this process is normal in Thailand where a Buyer needs a bank loan.  That, and only that, is the information I am seeking.  Yes, it seems "far off normality", but there is a person in this thread who replied that they did have a similar experience; and the Buyer's bank's own website describes their process in loaning funds to Buyer's of used cars- they have to have ownership first and it's then a loan to the Buyer/Owner up to the value of the asset and the asset is the collateral.

 

 

 

 

[jeffandgop]

17 hours ago, jeffandgop said:

You are not understanding the limited scope of my query.  I know I can go to MY bank and ask what THEIR process is.  I know what the prospective Seller's bank process is- a different bank than mine.  And we all know from experience that how processes are defined are not always what occurs.  That is why my question is- and remains- has anyone had an experience with the process I have described?  I am not asking for any other advice.  I am fully acquainted with what is the experience most of have had- money first to the Seller then the transfer of the property or goods to the Seller.  This is the opposite.  That's why I am "asking strangers" if they have had a similar experience. Nothing more. Nothing less. Not eliciting opinions from anyone that hasn't actually gone through the process I have described in my original posting.  Nothing arrogant.  Just trying to focus the conversation.

Correction.  It should be "money first to the Seller then the transfer of the property or goods to the Buyer. "