Taking over Car Loans
By presdallias •
I'm not in Qatar yet but still am looking at the local car market. I see loads of ads to take over someones' car loan. Is this for real? If so how on earth does it work? I would appreciate someone enlightening me on this as it sounds too good to be true.
Julie
Personally, I would not get a car that way either. Because I suspect under such method the buyer will be paying banking interests too which make the overall cost of the purchase high.
Who knows, may be the bank would lend money to you with lower interest compare to car owner case ?
Unusual as it may seem to those of us from the UK, where it just doesn't happen that way, it does seem to be an entirely accepted way of doing things here.
As indicated above, it is pretty straightforward if buyer and seller both bank with the same institution. If they don't I'm not sure exactly what you would need to do.
Personally, I don't think I would bother going down that route unless the loan rate/total interest payable was better than one I could get for myself for the same loan amount.
Maybe there are other factors I haven't thought of that make it a better idea than I think it is. Hopefully you'll get more answers to this from the old hands here who know the "ins and outs".
Simple as this just transfer his loan to your name and continue the rest of the payments which he has.
You need to have a bank account from where the loan is acquired. Some banks might ask for your salary transfer for EMI to be deducted directly from your salary.
Hope it helps. wait for other QLer's to respond too.