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Kevin119

Buying a leased car

Question

Hello, 

I was in search for a car last couple of months and found a good one. Vehicle is on lease and owner is not in the country. Owners brother was the one who selling the vehicle and he claim that he will settle the lease and can transfer the vehicle. Also he has signed MTA form by the owner and concent letter as well. Is it worth the risk or am I taking unnecessary risk here. Your valuable inputs highly appreciated. 

Thanks in advance!!! 

 

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A finance company will not release the CR of a vehicle to anyone except the registered owner unless the other person possesses a power of attorney. So he won't be able to get the CR out even if he pays in full.

 

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but then if the brother actually has a power of attorney and can get the CR out after paying the full amount then you are pretty much on a straight path.

However, if he expects to pay out the lease from the money you are going to pay for the car..then you will have to do some due diligence to make sure that the guy gets the PoA and that the leasing company is willing to accept it BEFORE you give him your money. You do not want to give him a whole lot of money only to find out that the guy hit a snag and couldn't get the CR out.

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5 hours ago, Crosswind said:

A finance company will not release the CR of a vehicle to anyone except the registered owner unless the other person possesses a power of attorney.

Lease companies do give the CR to the bearer of a letter signed by the registered owner. One leasing company had a letter template requesting that CR and the letter to DMT to erase absolute ownership to be collected by a specified third party. (Such as the new owner of the vehicle)

Better ask from the company itself. Remember the registered owner has to sign the letter. If the company is willing to accept such a letter, ask the seller to get a letter signed and posted to him.

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14 hours ago, varotone said:

Lease companies do give the CR to the bearer of a letter signed by the registered owner. One leasing company had a letter template requesting that CR and the letter to DMT to erase absolute ownership to be collected by a specified third party. (Such as the new owner of the vehicle)

Better ask from the company itself. Remember the registered owner has to sign the letter. If the company is willing to accept such a letter, ask the seller to get a letter signed and posted to him.

Normally such letters are accepted if the letter is signed in front of the representative of the finance company. (When vehicle is sold etc.) Otherwise there is the risk of forgery.

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I couldn't remember if signing in the presence of a company representative is necessary. The registered owner can sign the power of attorney even when abroad. (I'm not sure if a document signed in one one jurisdiction is valid in another. But once such a power of attorney was accepted for a property matter)

Also, the leasing company has a signed MTA form which they will return when the lease is settled.

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Do the transfer at the leasing company by settling them direct, you need to get a letter addressed to RMV that the lease is settled in full and the leasing company no longer have any interest in the said vehicle.

Be extremely careful as there have been several scams where people have parted with their money, however not got the ownership of the vehicle as seller has not settled the leasing company.

Common statement of the seller is that they will do the needful and get the leased settled with minimum inconvenience to the buyer which never happens.

 

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On ‎9‎/‎18‎/‎2019 at 11:09 AM, varotone said:

I couldn't remember if signing in the presence of a company representative is necessary. The registered owner can sign the power of attorney even when abroad. (I'm not sure if a document signed in one one jurisdiction is valid in another. But once such a power of attorney was accepted for a property matter)

Also, the leasing company has a signed MTA form which they will return when the lease is settled.

If you are signing a document abroad it should be done at the embassy in front of specified official and follow the due process. Otherwise it will not be acceptable. Also such PA should be a recent one as we will not know if the PA has been cancelled subsequently.

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