[WTA] Transfer of ownership of used car with existing loan

Hi all,

If I’m getting a used car (buying with cash), is it possible for the current owner to process the ownership transfer if he/she still have outstanding balance of the loan with the bank? Will JPJ approved the transfer? The car is in good condition and the price is below market value. So, I’m kinda worried if the owner try to pull the trick on me…please enlighten me on this, thanks heap.

i think all countries work the same? u continue his loan, deduct from final price. in some occasion where the seller just wanna get rid of his debts u only need to continue the loan payments


   Sorry to confuse you with my question. Anyway, just let me simplify it. 
  • I want to buy a used car using cash money (and not continuing service his/her loan).

  • If the owner can provide me the original copy of the vehicle green card(certificate of car ownership in Malaysia), can I safely assume that the car in not under any loan or refinance scheme ?

i believe so, as for other countries the banks are obliged to hold that original ownership copy under any loan arrangement, not sure for m’sia. it wont hurt doing more due diligence check.

if banks there follow the same rules, yes, original cert means it’s freed from loan, but of course check that cert carefully. we always do extra steps for ‘below market price’ stuff 8)

points taken, thanks for your advise.

if they got the original green card dosent really mean they are still not charge under the bank… u have to look at the hakmilik dituntut oleh which bank at the front page… usually will print by jpj… if the hakmilik cancel by the jpj and sign. we can assume that it is a not under any bank

Thanks you very much for your reply. Another forumer was telling me the same thing. So, one more thing…if the hakmilik cancel was being done by JPJ, does this mean that JPJ has a way to find out if the car is still under loan?

em yup… if the car is still charged under certain bank, transfering of ownership cant be done because it would first require the bank to discharge the ownership of the car.

I see. Thanks again for all the info.

 One last question: I've been hearing about "sambung bayar", so I assume it exist. So, if the seller manage to trick me in signing the transfer of loan (sambung bayar) then the transfer of ownership can still be done right?

yeah was wondering bout the same thing…how do they process the ‘sambung loan’ method…does the potential new owner of the 2nd hand car hv to go for loan approval (due balance from the car loan) ? and then go jpj change ownership?

hi, wat type of car u looking for? u already find the car?

Better ask the bank to change the HP loan to your name instead and bank might /might not ask the previous to stand as guarantor (assignment of loan). Then the ownership of the car have to change to the new owner and you will be continuing the payments under your name.
If you decided to continue paying the loan (which the car is still under the previous owner name, just to skip the proper procedure), it will be risky in case the owner refused to sign the transfer form once the loan has been fully settled. Therefore, the vehicle will still be under that owner name.

To Loseseeker, for your info, the bank ownership of the car is stated on the bottom of the front page of the reg. card, and the information of the hirer and details of the vehicle were submitted to JPJ via on-line. If the car has been fully settledm, then the bank will discharged their ownership of the car and will again submit the cancellation of ownership via on-line to JPJ. The owner will have to bring the original reg. card to JPJ to cancel the bank ownership.

hi, wat type of car u looking for? u already find the car?[/quote]

Yes, that’s why I’m asking for help regarding the transfer of ownership.

To all, thanks a lot for all the inputs. I got a much clearer understanding now as to how to protect myself from potential fraud resulted in car purchase.