Ethos83

Like quite a few people in Dubai, I'm putting together my exit strategy should the worst happen and I am sacked.

My only financial obligation in this country is the car loan, which I obtained from my bank (Lloyd's) and not the dealership.

Assuming I am sacked, what is the status of the car loan, once the bank is notified by the company of my newly unemployed position?

Since the loan was arranged with the bank, the monthly payment is deducted from my bank account and I didn't have to write multiple cheques to the dealership. I did sign a form letter while applying for the loan that essentially signed over the car to the bank should I be unable to continue the payments.

Does it mean I can simply leave the car at the bank with the keys and a letter explaining that I would be unable to make any more payments (as I would be flying home with no serious intent of returning to Dubai). Would that end my obligation to the bank? After all, the car is the collateral for the loan.

I put down a hefty downpayment on the car (30K for a 90K 5-door Pajero in November 2008) so even now the car's value outweights the value of the loan.

Second question: would it be relatively easy to sell a 6-month old Pajero for 65-70K?

Thanks!

admon

should be easy to sell the car, even if you have to take a tiny hit for a quick sale.

I don't think you have a problem there, but I wouldn't think the bank would be happy at having the car back, would sell it at a ridiculously distressed price, then still want you to cover the loss.

Blue Cat

I think it would sell, they are good cars. Nice to hear people are thinking ahead.

ray2gill

[QUOTE=Ethos83;7191023]Assuming I am sacked, what is the status of the car loan, once the bank is notified by the company of my newly unemployed position?

Some employers have a nasty little agreement with your bank, whereby the employer gives any last pay cheque to the bank who take any outstanding loans or monies owed before handing the balance over to the employee. Most employees are totally unaware of this.

This happens especially when the employee has opened a bank account with their employers bank - for ease of salary payment

Second question: would it be relatively easy to sell a 6-month old Pajero for 65-70K?

Any person you wish to sell your car to will not be able to register it in their name without a letter from the loan company/bank stating that any loan on the vehicle has been paid off.

I know this from experience 3 months ago. My car had been paid off 6 years previously but a letter was never issued. We had the vehicle test done, the buyer had his insurance and the guy asked for the letter stating there was no outstanding loan which we didn't have. We managed to get it at 12:00pm on a Thursday before the testing station closed at 1:00pm. The registration card states if a vehicle has a loan against it - unfortunately it is in Arabic. Sale was completed and We headed straight to the airport. Didn't have time to cancel my insurance.

Shadya

You appear to be encouraging an illegal act BC...the car is not his to sell and the documents will have the bank as the registered owner or at least its financial interest recorded. Selling is not really an option..

Madam Medusa

what, so you're saying that anyone who has a bank loan can't sell a car...that can't be right, surely...??

MM, xx

Blue Cat

course it is woman! the person you sell it to settles your finance.


it aint right MM

Madam Medusa

i didn't think it was...or hardly anyone would ever be able to sell a car here...

MM, xx

Blue Cat

exactly, some people just don't know what they are talking about, if in doubt say nowt

Shadya

But surely the original owner has to settle the finances? The car cannot be registered by a new owner without bank approval...so I was told.

Blue Cat

1 find someone to buy car
2 take person with cash to bank to settle the finance
3 take car and person with balance of cash to car registration place
4 transfer car into new owners name
5 collect balance of cash

it goes like that.

Jeeper

Since when has a bank ever been the registered owner of a car?

It's bad enough the banking industry is f'd and the US auto industry as well......lets not combine them.

Jeeper

Was that you in the GN tabloid section yesterday?

Blue Cat

as much as love W10 and I make no secret of it, I know longer get Gulf News so it weren't me

ray2gill

I am sure there is a way that any buyer who would probably have to take out a loan would pay off the outstanding loan with the new one.

Never done this but not everybody would hang onto their vehicle for 2 - 3 years until any loan was paid off.

Alternative is take to a dealer and see what they will offer.