Posted: 11/17/2011 11:27:00 PM EDT
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Despite learning about contracts pertaining to agriculture I know little about selling a rig. I bought a powerstroke diesel and I've got another pickup that I need gone. A kid I know real good kid, who I went to high school with needs a pickup but is pretty poor.
We talked about a deal $600 cash, a firearm, and then monthly payments of $100 until he pays off the bill( a limit of months something around 12 months or less). Him and I both agree that he is to carry fully coverage insurance. My issue is should he get the pickup and then decide to quit paying what does that mean in terms of the money I have received to the point in time, do I get to keep it or do I return it when he returns the pickup (or even if I have to repo it myself?). |
| you may be able to sell it to him listing yourself as the lien holder, same as a bank would do. I sold a vehicle to a friend like this, set up with me as the lien holder and a contract written between us. State showed me on the title like a lender would be, when it was paid off I signed the title over to them. I have a good friend who traded off an 02 f-350 dually for 3 older trucks and a tractor. He knew people that needed the trucks, he sold them the same way, everyone pays him, and he was listed as lien holder, so if vehicle is wrecked, the insurance payoff goes to him. If it someone you trust, it may be the only way they can get their first vehicle. |
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Send the kid to his own bank to apply for a short term loan. He may need a co-signer on the loan, just make sure it isn't you.
If he welches on the payments, not only does it hurt his credit score, the co-signer is effected as well. You can set up an "In House" contract with him where you hold the title of the vehicle until said vehicle is paid in full. One late payment and you can pop the truck from him with no legal recourse. Get at least 1/2 of the agreed selling price as a down payment, that way if the kid trashes the truck you can still recover the other half through salvage /parting it out. HTH |