Exit strategy-Car loan
Jan 23rd 2009, 10:45 pm
#16
Forum Regular
Joined: Apr 2008
Posts: 54
Re: Exit strategy-Car loan
bc is right, we recently bought a car that still had finance outstanding. We had to take the cash to the bank to pay off the loan then 3 days later the previous owner was issued with a noc in order that we could register it in our name. Simple.
Jan 24th 2009, 5:17 am
#18
Account Closed
Joined: Jul 2008
Posts: 820
Re: Exit strategy-Car loan
Which is exactly what I was trying to say. You as the owner have to settle the outstanding loan before the car can be sold. That means that you cannot simply sell the car and exit the country without paying off the loan as the original poster was seeming to imply. The loan can be a very large amount over here.
Jan 24th 2009, 7:19 am
#19
If I have to explain...
Joined: Sep 2008
Location: Where ever the road takes me
Posts: 3,999
Re: Exit strategy-Car loan
It all depends on whether the car loan was a "car loan" or a personal loan. If an invoice was issued by the dealer to the bank, then the bank has title. If the loan was made to buy a car and was of a personal nature; no invoice issued to the bank; no ban title to the car.
Pajero should sell reasonably easily although getting finance to buy one can be a bit sticky!
Pajero should sell reasonably easily although getting finance to buy one can be a bit sticky!
Jan 24th 2009, 8:16 am
#20
Guest
Posts: n/a
Re: Exit strategy-Car loan
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.
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.
I know someone who bought a three year old Porsche Boxster S for Dh90,000 recently.
Jan 24th 2009, 8:20 am
#21
BE Enthusiast
Joined: Mar 2008
Location: all over the place
Posts: 759
Re: Exit strategy-Car loan
Sadly not. I'm trying to sell my car at the moment. And people are only throwing ridiculous offers around. I'm not in a hurry to sell so its not a problem but there are massive bargains to be had from people who need to sell ASAP.
I know someone who bought a three year old Porsche Boxster S for Dh90,000 recently.
I know someone who bought a three year old Porsche Boxster S for Dh90,000 recently.
Jan 24th 2009, 8:24 am
#22
Guest
Posts: n/a
Re: Exit strategy-Car loan
If you're feeling secure in your job (and rich)...I've seen a 2007 Vantage for sale for Dh350,000.
Jan 25th 2009, 3:57 am
#26
Account Closed
Joined: Jan 2007
Posts: 244
Re: Exit strategy-Car loan
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!
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!
We recently had to get rid of two cars although we were living in Al Ain but I assume the process will be the same anywhere. We had loans with HSBC. We sold both cars, one by way of assigning the loan to another party which was reasonably simple, just paper work. The other one the buyer wanted to purchase outright so we had to pay off the loan before we could sell the car, as the car actually belongs to the bank when you have a loan on it. This was a nightmare process but one whic was excarbated by the fact that our residency was in Dubai and we sold the car in AD. You cannot just park your car at the bank's doorstep and walk away as this will been seen as a default on the loan and you will be persued for the costs.
As far as I am aware there is no relationship between the bank and your employer so I'm not sure how they would know that you are no longer emplyed by that company!
