15/03/2021
"There is DANGER in the uprising PASALO SCHEME... BEWARE"
Video References:
https://www.youtube.com/watch?v=rA3VYGkZqHI
https://www.youtube.com/watch?v=0-zP4Of3Tsc
https://www.youtube.com/watch?v=Hbf5UCq3YRA
There are several nightmare scenarios that can happen–many stem from the fact that the car remains under the original owner’s name until it is fully paid off and eligible for transfer. If any of these situations are to occur during a deal, then legal issues and demands may not be far behind.
The seller stops paying, the bank seizes the car from the buyer
If the seller stops paying for their loan (even though they have received the PDC’s for it) then the bank will eventually repo the unit from the buyer even if they’ve already “bought” it. Some unscrupulous sellers may even try to offload units already on the verge of repossession.
The buyer stops paying, the bank chases the seller
If you are the seller and the buyer’s provided PDC start to bounce, then you will be stuck with a big problem with the bank. As far as they are concerned, the seller is still responsible as it is still their name on the loan. Meanwhile the buyer can simply disappear with the car and it would be your burden to find them.
No contract means no liability
There are stories of cars being used as rental units with the delinquent buyer knowing they would be repossessed in a few months anyway.
There is the possibility of either party being involved in a judicial case or illegal activities and being traced by the authorities to each other. If the car is involved in an accident and wrecked, should either party continue paying at all?
Further complicating things, there are even instances of buyers finding a third-party to “re-assume” the balance once they realized they couldn’t pay as well!
Since assume balance agreements are often done without a formal contract, sorting these scenarios out is very messy, time-consuming, and involve a lot of finger-pointing. The practice even made the evening news:
"Protect your hard-earned money by only transacting with legit and established car dealer."
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ADMIN OF TOYOTA BACOOR USED CARS
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