[narayanang76]

Originally Posted by shekharlele

11. Closed the deal at 4.25 L, paid him 3 now and since he does not want to foreclose his loan (avoid penalty), I have given him PDCs of the remaining amount. Loan would close in Aug 2010. He also would renew insurance in September and said it will help me as he has a 40% NCB on it.
I trust him and vice a versa, so we have made an email agreement laying out the terms as mentioned above.

First of all congrats and enjoy your ride!

I have a query regarding your point 11 though.
Does it mean that the Owner of the vehicle is still your boss, RC book has Hypothication and it is NOT cancelled?

If it is then I would not be agreeing for such a transaction (either as a seller or as a buyer), and that is only my view

Regards,
narayanang76

[shekharlele]

Hi Prince / Spitfire

Actually, I have sent an email communication (considered legal) to my boss saying the car is under my possesion and responsibility (similar to a delivery note?) as well as the commercials. So that probably takes care of any eventuality

I will maintain it the same way in which my boss did, probably a shade better, and tell the new owner that I was using the car. Just that the mere change of name will impact the value when I decide to sell it. I am only trying to avoid needless value erosion.

However, after I have paid my boss all installments (ending Aug 10), I WILL get the car transferred to my name. This was just in case I did not like using this car.

That said, I understand the spirit with which the comment was made. However, cheating was not the intention of this arrangement

[shekharlele]

Hi Narayan,

Thanks. You are quite correct, my boss is the owner of the car and I am using it. The car is hypothecated and the EMIs end in Aug 10. I will be paying the PDC of the EMI to my boss who will pay it forward (all monies amounting to total of 4.25), the insurance is due in September and boss has a 40% no claim bonus. This arrangement helps me and him in 2 ways:

1. Gives me an EMI facility at no extra cost / loan
2. Helps him avoid foreclosure charges
3. Helps keep the insurance costs down

However, none of the above is more important than being legally safe. When you say you would not agree to this transaction, do you have any particular pitfalls in mind?

[narayanang76]

Originally Posted by shekharlele

Hi Narayan,

Thanks. You are quite correct, my boss is the owner of the car and I am using it. The car is hypothecated and the EMIs end in Aug 10. I will be paying the PDC of the EMI to my boss who will pay it forward (all monies amounting to total of 4.25), the insurance is due in September and boss has a 40% no claim bonus. This arrangement helps me and him in 2 ways:

1. Gives me an EMI facility at no extra cost / loan
2. Helps him avoid foreclosure charges
3. Helps keep the insurance costs down

However, none of the above is more important than being legally safe. When you say you would not agree to this transaction, do you have any particular pitfalls in mind?

You have mentioned some points which are reasonable explanations.

regarding my comment, am happy to clarify my view, (not because any pitfalls). I would be more concerned as a seller than a buyer in this situation.

As a seller I wouldnt be doing it because someone elese is using my car (still in my name) and any issues (theft, accident) the original owner has to take care (at least paperworks). And if I want to buy another vehicle, there will be more vehicles in my name.

As a buyer, I am paying some good amount to the original owner, but still not being the real owner of the vehicle, is the reason. when you say this to the next buyer, I feel it gives the same influence as you are the second owner, paperwork wouldnt show it and to some extend you are right there. As I said I would like not to do this, it will give tension for me always :-)

I would like to mention this to you - in case of any insurance related communications, please dont mention this deal of yours to them - that could have issues with any dealings with the insurance companies. Please make your boss do all communications etc with insurance companies.

TBHP itself have threads talking about insurance claims being void because the sale was incomplete (RC books not updated) and the new owner claimed insurance on the vehicle, in a particular case that I remember.

Regards,
Narayanan