Selling a car with assume balance

[kenn_06]

Hi Guys! I have an friend who's going to sell his Toyota Vios that was acquired February last year. It's a 5 year term, in-house financing and was approved by Eastwest Bank. His reason for selling is to upgrade to a new SUV.

He does have a potential buyer right now and they both agreed at a certain price. The buyer agreed to continue the monthly payment. We do not know the correct process / steps in selling a car with a remaining balance. Kindly let us know what documentation and necessary steps should we take. I'm only familiar if the car is fully paid which only needs the Original ORCR plus Deed of Sale.

Thanks in advance!

[ninjababez]

Hi Guys! I have an friend who's going to sell his Toyota Vios that was acquired February last year. It's a 5 year term, in-house financing and was approved by Eastwest Bank. His reason for selling is to upgrade to a new SUV.

He does have a potential buyer right now and they both agreed at a certain price. The buyer agreed to continue the monthly payment. We do not know the correct process / steps in selling a car with a remaining balance. Kindly let us know what documentation and necessary steps should we take. I'm only familiar if the car is fully paid which only needs the Original ORCR plus Deed of Sale.

Thanks in advance!

bro sa BPI ito instructions sakin, medyo nalilito nga ako eh
1. letter of request
2. auto loan application (fillup by buyer)
3. auto debit arrangement

sa office naman namin, ang gawain pala nila dito PDC ng buyer sa seller at kasulatan na pag nag skip ng 2 or 3 months yata hahatakin ng original owner sa buyer pag di nakapag bayad.

[TholitzReloaded]

bro sa BPI ito instructions sakin, medyo nalilito nga ako eh
1. letter of request
2. auto loan application (fillup by buyer)
3. auto debit arrangement

sa office naman namin, ang gawain pala nila dito PDC ng buyer sa seller at kasulatan na pag nag skip ng 2 or 3 months yata hahatakin ng original owner sa buyer pag di nakapag bayad.

Why take the risk? it's easy to loan a new car and the dp are insanely low..

[kenn_06]

bro sa BPI ito instructions sakin, medyo nalilito nga ako eh
1. letter of request
2. auto loan application (fillup by buyer)
3. auto debit arrangement

sa office naman namin, ang gawain pala nila dito PDC ng buyer sa seller at kasulatan na pag nag skip ng 2 or 3 months yata hahatakin ng original owner sa buyer pag di nakapag bayad.

Thanks sa response bro. Siguro will advise him na lang muna to check with Eastwest Bank mga requirements.

Medyo risky yung sa office niyo kasi under the name pa din ng seller. Many things might happen na iniiwasan din ng friend ko. And he might not be approved sa new car loan niya because of the existing one.

[dr. d]

Hi Guys! I have an friend who's going to sell his Toyota Vios that was acquired February last year. It's a 5 year term, in-house financing and was approved by Eastwest Bank. His reason for selling is to upgrade to a new SUV.

He does have a potential buyer right now and they both agreed at a certain price. The buyer agreed to continue the monthly payment. We do not know the correct process / steps in selling a car with a remaining balance. Kindly let us know what documentation and necessary steps should we take. I'm only familiar if the car is fully paid which only needs the Original ORCR plus Deed of Sale.

Thanks in advance!

i have no experience with this.
but i gather, the best authority to ask, would be the institution the car is mortgaged to.
they probably have forms ready to fill up.

but to me... "assume balance" is somewhat like, buying a used car at new car prices... the seller must have given the potential buyer a lot of incentive.

[kenn_06]

i have no experience with this.
but i gather, the best authority to ask, would be the institution the car is mortgaged to.
they probably have forms ready to fill up.

but to me... "assume balance" is somewhat like, buying a used car at new car prices... the seller must have given the potential buyer a lot of incentive.

Yes, a huge discount / incentive just to dispose the car. Almost 80K na din matitipid ng buyer and 4years na lang of installment.

[ninjababez]

Thanks sa response bro. Siguro will advise him na lang muna to check with Eastwest Bank mga requirements.

Medyo risky yung sa office niyo kasi under the name pa din ng seller. Many things might happen na iniiwasan din ng friend ko. And he might not be approved sa new car loan niya because of the existing one.

Yung sakin pala bro share ko lang, i will shoulder the transfer fees and chattel worth around 20k according to bpi. Plus the 2016 insurance which is about 19k according to bpi. lost around 12.8k x 12, 70k (dp) nd 40k in fees in the process, binigay ko narin seatcover worth 6.5k and other stuff. Ok lang, importante wala nako utang sa bank after this; and i can loan anytime after the transfer (altis? Sylphy?swift?) Ill prolly get a new car in 2017 pag nagsawa at bayad nako sa vios j 2006 na binili ko sa boss ko *190k .😊

[rey752]

Sir ninjababez,ikaw ung may Swift 1.2L na black diba? You disposed the Swift na?

[ninjababez]

Sir ninjababez,ikaw ung may Swift 1.2L na black diba? You disposed the Swift na?

In the process palang bro. Basta pag january 30 na at hindi pa nalipat sa name nung kukuha, dun ko papasa sa next in line 😄

[kenn_06]

Unfortunately hindi pwede yung transfer of mortgage sa eastwest bank. So under pa din sa name ng friend ko.. Need munang isettle yung full amount.. meron pa kayang other option to dispose yung car?

[sirLancelot]

Do you guys think worth it bumili ng cars under assume balance?

[_Cathy_]

Do you guys think worth it bumili ng cars under assume balance?

NO. Too much hassle.

[ninjababez]

Do you guys think worth it bumili ng cars under assume balance?

Depende bro, marami nagsabi sakin swerte daw kukuha nun auto ko kasi wala akong money na inexpect sa transaction namin ng buyer. Yun iba kasi akala mo brand new yung benta eh
Kumbaga ayaw palugi lol

Unfortunately hindi pwede yung transfer of mortgage sa eastwest bank. So under pa din sa name ng friend ko.. Need munang isettle yung full amount.. meron pa kayang other option to dispose yung car?

Typical assume balance transaction lang siguro bro. Pdc from buyer, and deed of sale/transaction from seller.

[dishcom]

On my own opinion. Ok lang basta walang cash out at walang major na sira ang auto. Ikaw na lang mag tutuloy ng hulog. Nililigtas mo lang siya sa legal problem.

[kenn_06]

Depende bro, marami nagsabi sakin swerte daw kukuha nun auto ko kasi wala akong money na inexpect sa transaction namin ng buyer. Yun iba kasi akala mo brand new yung benta eh
Kumbaga ayaw palugi lol


Typical assume balance transaction lang siguro bro. Pdc from buyer, and deed of sale/transaction from seller.

What if magkaproblem financially yung buyer then hindi na makabayad later on? What if hindi na nya maretrieve yung car?Iniisip namin na yung seller or friend ko pa din hahabulin ng bank since sa kanya pa din nakapangalan ung autoloan. Or would the deed of sale suffice? Advice ko nga na magseek muna kami ng legal advice or iretain na lang nya para wala ng problem. Wala ding in need sa family nya na lesser risk siguro compared sa total stranger. Yun nga lang 4 years pa syang mghihintay and magbabayad..😂 buti pa sa bank mo na pwede..

[L1quid]

What if magkaproblem financially yung buyer then hindi na makabayad later on? What if hindi na nya maretrieve yung car?Iniisip namin na yung seller or friend ko pa din hahabulin ng bank since sa kanya pa din nakapangalan ung autoloan. Or would the deed of sale suffice? Advice ko nga na magseek muna kami ng legal advice or iretain na lang nya para wala ng problem. Wala ding in need sa family nya na lesser risk siguro compared sa total stranger. Yun nga lang 4 years pa syang mghihintay and magbabayad..😂 buti pa sa bank mo na pwede..

pede rin dyan siguro iparecompute nya sa bank kung magkano lahat if he's going to end the term early, afterwards benta nya oto ng full instead of assume balance then use the money sa sale to fund the bank payment, sigurado kapos yung funds sa sale vs what he'd need kaya magready lang sya to add some more.

[yebo]

Yung bt50 ko sa eastwest bank and i ended the loan term early to sell the car.

Pa-compute mo outstanding balance with intent to terminate the loan. Then sell the car to 2nd hand car dealer. Babayaran ka nila ng cash, dun kayo sa loob ng banko magbabayaran. Then babayaran mo ng full yung bank, sign the deed of sale, then turn the car over to the buyer. End of story. Don't expect na babalik pa sa iyo ang down payment at nahulog mo. Swerte ka na kung may 20% ang mabawi mo sa pera na nagastos mo na. Usually halos wala.

[kishAn]

Do you guys think worth it bumili ng cars under assume balance?

yes if the price is right, and also yung sa mga buyer na hindi maaprubahan sa bank due to bad records pwede sa kanila yan. risk nga lang ni seller/loan borrower kung hindi na mabayaran siya pa din hahabulin ng bank at name nya masisira in case hindi allowed ni bank ang loan transfer

[kenn_06]

Yung bt50 ko sa eastwest bank and i ended the loan term early to sell the car.

Pa-compute mo outstanding balance with intent to terminate the loan. Then sell the car to 2nd hand car dealer. Babayaran ka nila ng cash, dun kayo sa loob ng banko magbabayaran. Then babayaran mo ng full yung bank, sign the deed of sale, then turn the car over to the buyer. End of story. Don't expect na babalik pa sa iyo ang down payment at nahulog mo. Swerte ka na kung may 20% ang mabawi mo sa pera na nagastos mo na. Usually halos wala.

Thanks yebo! looks like a better idea.. clarification lang, are you referring to car dealership (Toyota mismo) or car hubs (the ones that sell used vehicles)? so bale ang buyer si car dealer na?

[ninjababez]

What if magkaproblem financially yung buyer then hindi na makabayad later on? What if hindi na nya maretrieve yung car?Iniisip namin na yung seller or friend ko pa din hahabulin ng bank since sa kanya pa din nakapangalan ung autoloan. Or would the deed of sale suffice? Advice ko nga na magseek muna kami ng legal advice or iretain na lang nya para wala ng problem. Wala ding in need sa family nya na lesser risk siguro compared sa total stranger. Yun nga lang 4 years pa syang mghihintay and magbabayad..😂 buti pa sa bank mo na pwede..

di lang dapat kilala bro pagbentahan, dapat alam mong capable magbayad. transfer dapat lahat ng papers/ownership sa buyer. medyo malaki ilalabas mong pera nga lang, mine is almost 20k for fees and chattel for a small car pa lang.