Letter Template for Carry On Instalment (COI): Subletting of Motorcycles

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In this article, we will be sharing with you how you to write a letter of subletting for your motorcycle under a carry on instalment (COI) plan.

The subletting of motorcycles is quite a common practice in Singapore. It is done when the current owner wishes to sell his/her motorcycle that is under a hire-purchase. The Seller and Buyer can conduct the deal through a Carry On Instalment or COI for short.

Under COI, the Seller will sublet the motorcycle to the Buyer. The ownership of the motorcycle will remain under the current owner, and the Seller will collect the monthly instalment from the Buyer. Once the loan tenure ends, the motorcycle ownership will be transferred officially to the Buyer. Should you need bike refinancing for your current instalment plan, Motorist offers it here.

Why choose a Carry On Instalment?

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To clear the air, COI is usually preferred when the owner of a bike would like to sell their motorcycle but the buyer does not have the upfront cash to settle the remaining loan.

To simplify matters, some owners allow the buyer to carry on his/her instalment, with an agreement to transfer the ownership of the bike if/when the instalment is cleared.

Carry On Instalments are also available for some motorcycle shops, but when it comes to the agreement details, motorcycle shops would have their own set of terms and conditions for the deal.

For direct buyer to seller deals, the agreement terms and conditions can be settled amongst themselves. Carry On Instalments are possible in Singapore because motorcycles are able to have two riders, the leading rider and sub-rider.

The motorcycle will be passed on to the buyer as the sub-rider after he/she pays the balance in full. After that, the ownership of the motorcycle will be transferred to the buyer.

There should be an official legal agreement between both parties done in black and white for obvious reasons.

Here are some examples:

1. The Buyer will have peace of mind knowing that the bike will belong to them after the instalments are fully paid for.
   
   
2. The Seller will have peace of mind knowing that the person cannot run away with the bike without paying the agreed figure.
   
   
3. Both parties will be able to seek restitution in the event the agreement is breached by either parties.

If you wish to conduct a COI with your buyer here are some things you would have to include:

Buyer and Seller Details

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Like any other legal agreement, it has to contain the details of both parties, the Buyer and Seller. It should have the following information:

• Name:
• NRIC:
• Mobile phone number:
• Address:
• Name of Shop (Optional):

Motorcycle Details

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For the Seller, you will have to include your motorcycle details (you may refer to your log card) and the current state of the motorcycle for the Buyer. This will protect the Seller if any new problems arise after the ownership handover.

• Make/Model:
• Motorcycle Vehicle No.:
• Engine No.:
• Number Plate Retention:
• Chassis No.:
• Original Registration Date;
• Road Tax Expiry Date :
• COE Expiry Date:
• Current Mileage:
• No. of Keys:

Sales Details

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Next, it is essential to include the details of the sale. For example, how much the vehicle is going to be sold for, the instalment amount that has to be paid each month, and any other monetary details regarding the deal.

Be sure to include the official handover date once the Buyer has finished paying the instalment as well.

• Motorcycle Price:
• Balance Due:
• Mode of Payment:
• Deposit:
• Loan Amount (for bike shops):
• Intended Vehicle Transfer Date:
• Instalment Date:
• Number of Months of Instalment Left:

Terms and Conditions

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The terms and conditions should be fair to both parties and follow the Laws of Singapore. Should there be any breach of the contract, both parties can dispute it legally. Ultimately, the terms and conditions should be agreed by both Buyer and Seller. Terms and conditions of the agreement should include:

• That the Buyer will pay the remaining instalment of the motorcycle.
• The compensation amount should either the Buyer or Seller breach the contract.
• That the Seller is to preserve the condition of the motorcycle before the handover.
• That both Buyer and Seller have both acknowledged, understood, and agreed to the terms of the agreement.

Signing the agreement

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Lastly, insert a slot for both parties to provide their signatures just like any other form of agreement.

Is there a need for a lawyer?

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Once you’ve gotten the agreement drafted out, the next thing you need would be a third party to act as a witness. If you want, you could hire a lawyer for an estimate of around S$300.

You could also bring along a trusted person to witness the signing of the agreement. It is fine as long as there is a witness for both the Buyer and Seller.

In conclusion, the process of a Carry-On Instalment is straightforward despite it being different from how people conduct car deals. It is easy to carry out when both parties are accommodating to the transaction.

We hope these steps will guide you in crafting a letter for the subletting of your motorcycle. You can also check out our Carry-On Instalment Letter template below to make your life simpler.

Letter of Subletting of Motorcycle Template

If you need a copy of this template, download and print it out here.

Read More: The Costs Of Owning A Motorcycle in Singapore

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