Finance

Question: Owner finance documents for vehicles?

(Posted by: david on 2010-03-10 08:38:53)

What documents should be used to owner finance a vehicle

Posted by: mbrcatz on 2010-03-10, 08:42:50

You need a legal loan agreement, and you need to make sure you 're listed as leinholder on the title. Private owner finance situations usually end up a disaster - I don 't recommend it. If you, the owner, ALSO have a lein on your car, then you can 't sell it to someone else under a finance contract.

Posted by: lucy on 2010-03-10, 09:09:09

Why would you want to finance yourself? Is it because they cant get a loan period? If so, you will forever be chasing those payments every month, if they cant get a loan, then they will probably do the same to you. If you own it, then have them get a loan from somewhere else, be it a bank or thu one of their family members and pay you cash and move on. But if you are still owing, cant sell till paid off. good luck

Posted by: Steve on 2010-03-10, 09:09:23

What you 're thinking about doing is a VERY bad idea and I highly suggest you reconsider. When selling a car the deal should go something like this, "here 's the cash. " "OK, here are the keys and the title. " Anything more complicated than that usually goes poorly for the seller. If you 're dead set on doing it, keep it simple. Have the agreement say you 're the owner until an agreed upon amount has been paid - and you hang onto the title. Set a payment schedule and stick to it. Have a specific amount of time the payment can be late before you repo it, I suggest no more than 24 hours - make sure you keep a key. Require full coverage insurance be carried on the vehicle and have your name on the insurance as a payee - if it gets stolen or wrecked, buyers are notorious for not paying for the rest. I 'd also require proof every month that the insurance is current. With a company like geico all you have to do is call and ask - it 'd take less than 5 minutes. Finally, take good pictures to document the condition of the car when you give it to them and give the buyer a receipt every time he makes a payment. If you follow all of these rules your odds will be better but I still bet you a hundred to one that you don 't get paid in full and it ends up in court.