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

[jeffandgop]

20 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?...

Really? My question should invite or accept replies that don't answer the question and if I don't want non-responsive answers I have no right to post a question in the first place?

[amykat]

Is there a penalty for answering the question incorrectly??

 

Could you please state this before asking a question next time??

[jeffandgop]

1 hour ago, Ralf001 said:

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

Normally my experience as well. Here in Thailand the bank will put in lien in the Blue Book

[Ralf001]

8 minutes ago, jeffandgop said:

Normally my experience as well. Here in Thailand the bank will put in lien in the Blue Book

And they keep the book until the buyer has cleared the loan.

 

[Peterw42]

OP, The process will be easier to understand if you realize that the bank is buying the car. Any car loan/finance etc, the bank/finance is the new owner in the blue book. The bank is buying the car, the bank will pay you. Anything else is between the bank and the guy getting the loan.

The process of funding an account, that you then draw on, sounds convoluted but is most likely the way the bank does it.

The bank is putting the money into a newly created account, (the account probably belongs to the bank, not the buyer). 

Its probably more for the banks internal checks and balances. they dont want to hand out cashiers cheques or put funds into 3rd party accounts etc. They will have a clear record of the transaction, the loan was funded into account X and the seller drew the money from account X.

The account name is probably Trustee account for buyername/sellername.

 

Edited December 30, 2021 by Peterw42

[jeffandgop]

15 minutes ago, Peterw42 said:

OP, The process will be easier to understand if you realize that the bank is buying the car. Any car loan/finance etc, the bank/finance is the new owner in the blue book. The bank is buying the car, the bank will pay you. Anything else is between the bank and the guy getting the loan.

The process of funding an account, that you then draw on, sounds convoluted but is most likely the way the bank does it.

The bank is putting the money into a newly created account, (the account probably belongs to the bank, not the buyer). 

Its probably more for the banks internal checks and balances. they dont want to hand out cashiers cheques or put funds into 3rd party accounts etc. They will have a clear record of the transaction, the loan was funded into account X and the seller drew the money from account X.

The account name is probably Trustee account for buyername/sellername.

 

Thank you but no, that is not correct in this instance.  The bank will loan/fund the Buyer's account that the bank requires the Buyer to set up.  The Buyer is really a Borrower at this point.  They are borrowing from the bank using the car as collateral for a personal loan.  That's why I will be transferring title to the Buyer first. The bank will apply a lien against the asset so that the Buyer/Borrower cannot sell the car until the loan is paid off.  The bank is neither buying the car or paying me directly.  The account name is in the name of the Buyer/Borrower.

 

My "security" to be willing to transfer title before receiving payment includes (1) holding the Buyer/Borrower's account passbook and ATM card so they cannot access the money without me that the bank will put in the account the day after the transfer; (2) holding the Buyer's Blue Book; (3) retaining the car; and (4) receiving 35% down payment before title transfer.

 

Only after I go to the bank with the Buyer to withdraw the newly placed funds in the Buyer's account does Buyer get possession of everything I will be holding on to.

 

[Orinoco]

This is a funny thread. all this leg work !!!!!!!!!!!!!!

A seller being told how he should sell his car by a bank and a buyer.

what a joke,

Cash, bankers draft  or bank transfer.

if not, on your bike.

 

Next thread , How i got scammed in Thailand. 

 

 

 

 

Edited December 30, 2021 by Orinoco

[Troy Tempest]

Run a Mile!....Save on Gasoline too!.... 

[seedy]

Amazing how complicated some make what is a very simple transaction.

[DJ54]

OP my experience when we traded in car on new car (loan).. it was over  a couple of days.. negotiated trade in price with on new car. Lender (Tisco) for New car dealer came to our house looked around and left. 

 

Day of transaction went to dealer with trade in. Drove the company buying our used car to their bank waited in car he came back with cash handed it to wife.  Back to dealer we gave blue book and cash

To dealer... signed loan docs .. drove off in new car.... which I’m happy to say paid off 3 months early no penalty...   so yes very strange but in the end all came out in the ok...

 

Not same scenario as you but strange to what we (Farang) think as normal... 

 

 

[Troy Tempest]

Never buy a car that has Finance owing....(Check first).

 

Only pay cash when you have been to the DLT, Transferred the car to your name and the keys and Blue Book are in your hands!

 

NEXT?

 

 

[Ralf001]

2 hours ago, Troy Tempest said:

Never buy a car that has Finance owing....(Check first).

 

Only pay cash when you have been to the DLT, Transferred the car to your name and the keys and Blue Book are in your hands!

 

NEXT?

 

 

did you even bother to read the OP ?

[Ralf001]

3 hours ago, jeffandgop said:

Thank you but no, that is not correct in this instance.  The bank will loan/fund the Buyer's account that the bank requires the Buyer to set up.  The Buyer is really a Borrower at this point.  They are borrowing from the bank using the car as collateral for a personal loan.  That's why I will be transferring title to the Buyer first. The bank will apply a lien against the asset so that the Buyer/Borrower cannot sell the car until the loan is paid off.  The bank is neither buying the car or paying me directly.  The account name is in the name of the Buyer/Borrower.

 

My "security" to be willing to transfer title before receiving payment includes (1) holding the Buyer/Borrower's account passbook and ATM card so they cannot access the money without me that the bank will put in the account the day after the transfer; (2) holding the Buyer's Blue Book; (3) retaining the car; and (4) receiving 35% down payment before title transfer.

 

Only after I go to the bank with the Buyer to withdraw the newly placed funds in the Buyer's account does Buyer get possession of everything I will be holding on to.

 

Once the buyers name is in the book he/she is the new owner.

 

I'd tell them thanks but no thanks and find another buyer.

[seedy]

Maybe go ask DLT what they have to say.

It just might be that they have seen this happen many times, are familiar with this (to me) weird procedure, and will understand your concerns and lay them to rest.