i'm trying to sell my car and the only person who wants it, wants to make monthly payments on it. i can't give her the title untill it's paid off but she can't get insurence till she gets the title. so how do i set it up so we don't get screwed?
2007-01-15 04:38:40 · 13 answers · asked by Anonymous in Cars & Transportation ➔ Insurance & Registration
sell it but have yourself as a lien holder on title.Have her sign a contract( promissory note) with terms of repayment. You are now a banker. congrats, dont forget the interest.get a down payment
2007-01-15 04:46:13 · answer #1 · answered by vincent c 4 · 0⤊ 0⤋
DON'T DO IT!! Think about this, if the buyer has such bad credit that they can't get a loan from a lender, why do you want to be the lender? If they have good credit they can get a loan from a professional company who will make them carry insurance and so on to protect the investment. Can you make them get and keep insurance, the asnwer is no!!
Plus if they can't afford the car with normal payments, why would you think they could afford them from you? I sold a boat once and the guy was supposed to make payments, he blew up the engine and told me I could ahve it back, it wa destroyed. A car is no different.
You are anxiuos to sell the car, but let any buyer handle their own financing, unless you want to wind back up with the car. Andot take it two steps further, if they damae the car, will they fix it or give it abck to you and walk away and if they stop making payments and maybe disappear with the car, what do you do then? Can you repo the car, do you have the time and means to track them down?
don't be so anxiuos to sell that you throw caution to the wind, make them get their own financing first and you sell it outright.
Oh yeah, if they get in an accident and you are on the tital, you can be sued too, since you have a financial stake in the car, so that's one other added misery.
2007-01-15 04:50:56 · answer #2 · answered by vettedude02 2 · 0⤊ 0⤋
I wouldn't get involved with a vehicle sale with payment plans. Personally financing a person can be very problematic for you should they decide to stop paying or damage the vehicle. Recourse for you is, of course, to repossess the car and sue for the damages. Do you think a person on a payment plan will be able to pay you for any damages? Even if you win in court, you still lose, because the person cannot make payments! Financing is best left to big companies that can absorb the loss of a few deadbeats.
Better to sell the car for a few bucks less and call it a day.
2007-01-15 04:54:30 · answer #3 · answered by David 3 · 0⤊ 0⤋
She can get insurance without the title.
Just make sure you get everything in writing. Include what day of the month you get your payment by, and what you will do if she defaults on payments.
You could add her to your policy for that car, and have her make the insurance payments too. Then transfer the title when she's paid up.
If you are uncomfortable with this deal, don't do it, or get a lawyer to write the deal up for you. It may cost a little, but may save you a lot.
Good luck!
2007-01-15 04:48:45 · answer #4 · answered by michaelsmaniacal 5 · 0⤊ 1⤋
Tell her to get a loan at a bank. You do NOT want to mess around with financing contracts. If you do, make SURE that it is drawn up by an attorney that specializes in consumer business law.
She does NOT need the title to get insurance! If that were true it wouldn't be possible to buy insurance on a financed vehicle. Furthermore, you can't tag your car and transfer the title unless you have insurance FIRST. Whoever is telling you that she needs to have the title in her name to get insurance is blowing smoke. Out their backside!
2007-01-15 05:00:43 · answer #5 · answered by Bostonian In MO 7 · 0⤊ 0⤋
until you have thoroughly settled the finance, the motor vehicle isn't yours. It belongs to the finance corporation. in case you have been to sell the motor vehicle, that would desire to be seen the two fraud or theft by the finance corporation and/or the Police. the two conviction would desire to bring about a penitentiary sentence, and a criminal checklist which will injury your employment opportunities for something of your existence. besides, you could nonetheless be liable to pay something of the finance. in case you stopped the money the finance corporation will check out, and would take you to courtroom. you will not win that case. Failure to maintain up the money will injury your credit, which will make it harder which you will get any form of credit interior the destiny (e.g. electricity or gas account, cellular telephone settlement, yet another motor vehicle loan, a loan, a mastercard or keep card, etc.). while you're wanting money, you will desire to telephone the finance corporation to describe the placement. you could then get their permission to sell the motor vehicle, yet which would be on the understanding which you utilize the money from the sale to settle the finance. Ask them for a settlement determine. you will desire to be conscious that in case you got the motor vehicle new or almost new with a small deposit, the settlement determine from the finance corporation may be better than the present re-sale fee of the motor vehicle. Any clever customer will do an HPI examine earlier procuring your motor vehicle, which will happen that there is finance wonderful on the motor vehicle. do you ought to sell the motor vehicle without clearing the finance, the finance corporation are interior of their rights to repossess the motor vehicle from the customer. In that experience, the customer will possibly chase you for a reimbursement, and in case you do not pay up would desire to take you to courtroom. A County courtroom Judgement against you will better injury your credit.
2016-10-20 05:52:42 · answer #6 · answered by Anonymous · 0⤊ 0⤋
Just write up a contract that says something to the effect:
Jane Doe owes John Smith $2000 payable in installments of $200 a month for 10 months for a 1982 Yugo. Both parties sign and date the contract and get it notarized.
If Jane stiffs you for the Yugo, she don't stand a chance in court with the signed and notarized contract....
2007-01-15 04:48:28 · answer #7 · answered by Hawk996 6 · 0⤊ 1⤋
The buyer needs to apply for auto finance. She needs to make sure that the product allows her to purchase a vehicle from an individual (instead of a dealership). The finance company will pay for the car and she will begin making payments to the finance company, instead of to you.
Here's an article that will help explain it.
http://development1.blogspot.com/2007/01/financing-car.html
Also, Capital One Auto Finance has a blank check process that will allow her to do this.
2007-01-15 04:44:16 · answer #8 · answered by trigam41 4 · 0⤊ 0⤋
Contact your lender and tell them you want to transfer the loan to someone else. If their application is approved (must pass credit check), the payments will legally become her obligation.
Now you can either just turn the payment over (if upside down) or charge her "downpayment" (if you got equity).
Have her insure through esurance.com.... they don't request a title.
2007-01-15 04:47:52 · answer #9 · answered by Anonymous · 0⤊ 1⤋
Make a contract and see a legal person so she can pay it off and have the title so she can get insurence
2007-01-15 04:43:37 · answer #10 · answered by Anonymous · 0⤊ 1⤋