Buying bike (Cash + COI from seller)

[tokillmob]

Hi guys,

 

Thanks for wasting your time reading on my issue, not really an issue i would say, just some stuff to clarify.

Buying this bike from Person A,

Person A have not finish paying the bike shop

Person A insurance is due in a months time

 

The current plan now would be, Person A sell me his bike, i pay a sum, and continue his installment, WITH THE BIKE STILL UNDER HIS NAME.

Of course, with all the black and white agreement of transfer after i have finish paying the bike.

In regards for the insurance, he will add me as sub rider, and i will top up the amount as my premium will cost more.

 

But isn't that stupid cause I will pay an amount to only top up the insurance for a month.

 

Is it possible, to go to the bike shop, and do a transfer, like to change the owed amount to my name, therefore, allowing the ownership to be transferred to my name, instead of his.

Is it possible, for him to terminate his insurance, and let me do a renewal straight away, hence allowing me to ride and not him.

 

Just find it, "unsafe" to pay for a bike that isn't under my name yet.

 

 

Thanks in advance for the advice.

[underage91]

no u cant. as the hire purchase agreement is under his name. so basically the bike will be under his name when u coi it. it take mutual trust in order to practice this coi thingy. u can only change the ownership when the loan term expires as stated in the agreement.

[tokillmob]

Ah, that sucks, what about the insurance ? Is it possible to just renew it with just my name ? or because since the bike is still under his, the insurance still have to be under him

[Demon]

Ah, that sucks, what about the insurance ? Is it possible to just renew it with just my name ? or because since the bike is still under his, the insurance still have to be under him

 

You can go get your own insurance but the cover will only be effected upon you being the registered owner. The only proper way to ride a bike that doesn't belong to you is as a sub rider.

 

There are too many pitfalls in a COI arrangement, and you should never get into one.

[captain_des]

go ask the bike shop, normally bike shops might do that provided you cough up 3 months installments upfront + your insurance..

btw not all bike shops will allow it, best to ask the bike shop

[tokillmob]

You can go get your own insurance but the cover will only be effected upon you being the registered owner. The only proper way to ride a bike that doesn't belong to you is as a sub rider.

 

There are too many pitfalls in a COI arrangement, and you should never get into one.

 

Oh well, the bike is nice and the price isn't that expensive, so i thought why not, didn't thought of all these complications though, thanks anyway

 

 

 

go ask the bike shop, normally bike shops might do that provided you cough up 3 months installments upfront + your insurance..

btw not all bike shops will allow it, best to ask the bike shop

 

Right, shall check with the bikeshop and see what deals do they have

[rhema83]

Reloan and put the bike under your name. Safe and clean. Whether the previous owner can settle his outstanding loan with what you pay him is not your problem.

[tokillmob]

Reloan and put the bike under your name. Safe and clean. Whether the previous owner can settle his outstanding loan with what you pay him is not your problem.

 

What you mean by that ?

[Jehuty]

Reloan and put the bike under your name. Safe and clean. Whether the previous owner can settle his outstanding loan with what you pay him is not your problem.

 

Then owner never clear how the finance coy want to repo if owner transfer ownership already?

[tokillmob]

Then owner never clear how the finance coy want to repo if owner transfer ownership already?

 

Haha, true, if i reloan, i would be loaning to pay the full amount to the bike shop

[haoKR]

find other bike not under any coi.

not worth to pay for one's interest..imo

lol

[tokillmob]

find other bike not under any coi.

not worth to pay for one's interest..imo

lol

 

Did thought of that, but the seller rushing off to overseas for further studies, so the deal was pretty good, decided to go for it, manage to solve all the problems stated in my first post on this thread, thanks for the reply

[nohorserun]

insurance may not cover u, touch wood if u met any problem which need claim. If they found out this COI things

[tokillmob]

insurance may not cover u, touch wood if u met any problem which need claim. If they found out this COI things

 

I'm covered, to ride you need to have at least 3rd party insurance coverage. Main rider is owner, sub rider me.

[joshsss]

Did thought of that, but the seller rushing off to overseas for further studies, so the deal was pretty good, decided to go for it, manage to solve all the problems stated in my first post on this thread, thanks for the reply

 

Hi, how did you end up settling the issue? I'm also stuck in the same situation! Bike shop does not want to COI under my name even with 3 months upfront + insurance. Many thanks for the reply!

[tokillmob]

Hi, how did you end up settling the issue? I'm also stuck in the same situation! Bike shop does not want to COI under my name even with 3 months upfront + insurance. Many thanks for the reply!

 

My solution was to use black and white, if you search long enough online, there're actually many people doing this, like us, so you have to do black and white. You can get some good examples of documents on sgbikemart, they have standard formats you can choose from. I don't think I am allowed to post any links here. Go to their homepage, and find "Forms to download", and take your pick.

 

Therefore, these are the steps you can follow:

 

1. Get the receipt document, it's a black and white where you can fill in the amount you paid to the owner, print 2 copies, 1 for you, 1 for the owner. In the document, state the amount you paid to the owner, and both parties will have to sign both copies, to show you paid, and to show he received.

 

2. Get the COI document, in the document, you can fill in the deposit or amount you paid, amount of months of installments left to pay, amount left to pay, mileage when you took over the bike. They have a Terms and Condition printed out for you as well that states something like before the date of taking over, any accident, fines, etc etc will be held by the previous owner, and after the taking over date, you will be the one responsible for the bike. There's also 1 that states after you have finish the installment, the owner will have to do the transfer immediately.

 

3. You can print an additional one if you want, like do up your own document, that includes a place for witness, get a friend to witness the transactions, at least got people help you if needed.

 

These are the 2 documents i used, there are a few more, you can pick whichever that helps you in the transaction.

 

 

 

Regarding the insurance part,

 

I guess you will have to either continue from the owner's insurance as a sub rider, whereby the owner will have to inform his agent or company to add you as a sub rider, then you will have to pay the extras if there is,

 

Or

 

Apply a new one, meaning to get the owner to terminate his, and you re-apply, under a company that you always use or trust. Same though, you 2 will still be needed to be present when signing the new insurance policy. Owner and main rider, you as sub rider, you might think, if I'm signing up a new policy, why not just put myself as the main rider since the owner will not be riding that bike you bought anymore. I made this mistake and learned from it, LTA does not allow that, hence, it would be illegal to ride with a bike that doesn't belong to you officially even though you have insurance covered along with the bike.

 

I am trying now to pay off the bike, to allow the shop to release the bike, so that I can do an official handover. Hope i helped, can reply here again if you have any other doubts, i will do my utmost best to help you.

Edited October 1, 2014 by tokillmob

[Taurian365]

tokillmob: thanks for the detailed explanation. I just got a 2B license and planning to buy a bike. This really helps especially the insurance part of riding a bike which is not under your name.

 

Cheers