Open letter Car financing

[pwuser152095619218]

Salam all. I want to know if i want to avail car loan from Bank AlHabib then is it necessary to buy car from a showroom, as bank staff say that the payorder is issued in the name of a showroom and not an individual person. The car that i have chosen is from an individual and not from showroom.
Also the car is on open letter. Anyonee with a suggestion is welcome

[saadtiger412]

Don't buy open letter car.

[anon35615524]

Wa Alaikum Salam. I think it does not matter that you always have to buy from showroom. Of course you can buy from the individual, however, there is a condition that, that individual must also be the current owner of that vehicle; at the time of sale, purchase, transfer, lease, etc.

[chinyoti]

The bank will make a payorder either on a person's name in case of a used car and on the name of the car company in case of a brand new car.

a car purchased on premium or used would be purchased from an individual in this case the car would be considered used. Used car financing is different from a new car financing.

In case you like the open letter car you would need to transfer in on your name or the person you are purchasing it from. Bank won't hand over the money to you

[pwuser152095619218]

Right brother. This means the person who is selling me this car has to first get it transferred to his name. Only then can the bank make payorder in his name.

[pwuser152095619218]

Why brother? Are there any issues that may arise

[anon35615524]

the car is on open letter.

First of all, open transfer letter cars may be avoided, as you may never now that in how many hands? it has passed. Secondly, you may face problems in getting it transferred in your name.

If car is on Open transfer letter, ask the seller to first get it transferred in his name, and then you may buy / lease from him.

I hope, it helps. Thank you.

[mohammedalahdal41]

Generally, banks issue pay orders in the name of showrooms or dealerships for car loans. However, some banks may allow you to purchase from an individual seller, but it's best to confirm this with Bank AlHabib directly. As for the car being on an open letter, it means the car is not registered in the seller's name. This can make the transaction a bit more complicated, but it's not necessarily a deal-breaker. I recommend seeking advice from a professional or someone with experience in buying cars on open letters to ensure a smooth process. And if you ever need mortgage advice, feel free to check out Mortgage Broker Sunderland. They might help you make the right choice.

[sardarg]

open letter vehicles are not processed for leasing since July 01 2021.
used vehicle leasing payment is processed directly under the name of seller as per registration documents thereby transferred to the bank under HPA.