Procedures In Selling A Vehicle To Finance Company

Dharma65 · October 18, 2011

Does anyone have experienced selling vehicle to a buyer who is taking financing from CF?. According to their procedures, the seller first will have to handover the Vehicle Title, VIC and Vehicle Revenue License to them for registration of transfer at DMV. In return, the seller will be given a Delivery Order and sale amount will be payable in cheque the next day or when the transfer has been completed. Is it true they have such procedures? What about the Form A of MTA6 that is to be send to the Commissioner of Motor Traffic by the seller? Should I give it to the finance company if they ask? What about the vehicle itself? Can I handover the vehicle key to them after confirmed receiving the full payment? Cheque issued/deposit from different bank might take few days to clear sometimes. Sorry if its too much to ask as I'm new to this selling thing and would to to have advise from experts. Thank you.

Crosswind · October 18, 2011

Yes the procedure is correct for most Finance companies.

Get the delivery order at the moment you hand over the documents (VIC, Title etc.) to the finance company. Also get a letter from the buyer and the buyer's advance payment before you hand over the documents to CF.

Vehicle itself can be handed over when you recieve the cheque. You don't need to hand over the vehicle before that. But you have to give a duplicate key when you hand over the documents.

Try to convince them to give you cash instead of a cheque. They can do that if they want to. Or try to get an uncrossed cheque (if you are confident that you won't lose it).

State your conditions BEFORE you hand over the documents to the finance company. They can be a bit flexible if they want to be.

Edited October 18, 2011 by Crosswind

Gigi · October 18, 2011

Hi,

Im not that genious about the vehicle documents part, Since you are worried about the chaque, I will give you an advise about the cheque,

If your buyer obtains the lease from a bank most probably you will get a Pay order (bankers cheque) It is a 100% payment guarenteed method. If it s from CF, They might give you a Cheque (please chek with CF) which was issued from one of their bank accounts (it is not a Pay Order). Most probably It will be a crossed chq with "A/C payee not negitiable" crossing. It means it must be deposited to an A/C. If you want to encash it please ask CF to cancell all crossings ( ask them to write "A/C payee and all crossings cancelled" on the top of the chq and place their stamp and sign. But I highly doubt about it cz they dont issue any open chques due to various reasons. If they refuse to cancell the crossing, You will have to deposit it to an A/C. The Cheque will be drawn under your name. If you have a current A/C in any bank, you can deposit the cheque to into it without a prob. But if you dont have a Current A/C and you have only savings A/C, please talk to your branch manager and check with him wether he can accept it to the Savings A/C. The reason is bankers dont accept cheques to savings A/C as a practice. you will have to provide proofs to the bank to confirm the payment.

If you are depositing the chq in the same bank which it has been issued from, you will get the credit immediatly( since most of SL banks are online now)If it is a different bank, If you deposit it before the banks clearing cut off time, you will get the credit on the following working day at around 2 30 -3. 00 PM.

Hope you are clear about Chques....

Jith P · October 20, 2011

As corsswind said getting balance payment (Which is not covered by Finance) before signing and handing over the document is very very important, once it happned to me as i signed and handed over all the documents to see vehicle transfer has taken place . Luckly that guy was nice enough to make the balance payment.