Payment/ Contracts/Car titles Questions

[LightningSpeed]

sorry if this is in the wrong post, but i really dont know where to post this, so here it is.
if i were to sell my car to a private party, and the other party was to be paying in payments, what would my contract consist of and what do i need to do in general, such as car title,and etc... i would like some help on this, if anyone know anything please help THANKS IN ADVANCE!! :cheers:

[The BUCKY]

that would be hard to do. i think

[LightningSpeed]

i would think so....thats why i have no idea, and i would like some advice. Thank you

[Cool Cat GTR]

If I understand you correctly, you are going to finance the car to the buyer. Here's what all needs to happen to protect you. First, I assume you have the title to the car which you need to keep until the loan you made to the buyer is paid in full. If you have the car financed and you are looking for someone else to take over payments, you have no protection and I wouldn't recommend doing it. Now ask yourself, why would a buyer want you to finance the car. Answer: Because the buyer cannot obtain traditional financing which would indicate you have a potential bad debt on your hands. So here's what you do. First require at least $1,000.00 down payment so the buyer has a vested interest in the car. Require the buyer to keep full coverage insurance on the car while they are making payments to you and the insurance should show you as the lien holder and loss payee. Be sure your loan has interest incorporated into it because without interest, the courts can claim that the transaction was a gift and you can get screwed if the buyer quits paying. Now get an amortization schedule prepared that indicates the purchase price, the down payment, the amount financed, the interest rate, the duration of the loan. Spell out the penalties for slow payment. To me, the first time the buyer is one day late, go repossess the car, keep the down payment, and go sell it again. Even if you protect yourself as much as the law allows, you still face risks. The biggest risk I can think of is if the car gets abused by the buyer and then they decide not to pay you. Believe me, it happens all the time. These lots where you see the sign that says buy here/pay here have gigantic steroid inspired body builders that do their collections and repossessions. Unless you have a Guido the Killer Pimp to help you, you will probably be sorry you ever fooled with any of this.

[99SI]

you can't repo and resell that easily if you are the lienholder. I have a buy here pay here car dealership. You should give a grace period whether five or ten days, generally a 5% penalty of the payment is a late charge. You HAVE to transfer the title to the person you are selling to, otherwise they can not obtain a tag and can not obtain insurance. You fill out the title with the buyer's name EXACTLY how it is on their drivers license. At the bottom of the title there is a section to fill in LIENHOLDER, put your name and address in that section. Charge the buyer an $18 fee, which is what the state charges to transfer the title. THIS IS IMPORTANT! YOU MUST TRANSFER THE TITLE WITHIN 20 DAYS OF THE DATE OF THE SALE IN ORDER FOR YOUR LIEN TO BE PERFECTED. If you were to transfer the title in 21 days after the date of sale and the buyer goes chapter 13 (bankruptcy) then the courts can and will award them the vehicle because you failed to perfect the lien on the vehicle. Keep that in mind with who you are financing. If a buyer goes chapter 13 it is a pain in the ass. The courts and lawyers get paid first, then the lenders, generally it is six months sometimes a year before I ever see a payment and even then they cut down the payment and do it at a prime interest rate. Also if someone has even begun to file the paperwork for chapter 13 you can't contact them or repossess their vehicle. As was stated above, full coverage insurance with you as the lienholder is a must. They will mail you a letter indicating a renewal or cancellation on the insurance. I would not finance a vehicle for someone personally unless I knew them EXTREMELY well and considered them almost family. Otherwise, it's risky business, and there is a reason why I charge 28% interest rates. :D If you have any other questions or would like to see an example of a finance contract let me know.

[Julio]

you can't repo and resell that easily if you are the lienholder. I have a buy here pay here car dealership. You should give a grace period whether five or ten days, generally a 5% penalty of the payment is a late charge. You HAVE to transfer the title to the person you are selling to, otherwise they can not obtain a tag and can not obtain insurance. You fill out the title with the buyer's name EXACTLY how it is on their drivers license. At the bottom of the title there is a section to fill in LIENHOLDER, put your name and address in that section. Charge the buyer an $18 fee, which is what the state charges to transfer the title. THIS IS IMPORTANT! YOU MUST TRANSFER THE TITLE WITHIN 20 DAYS OF THE DATE OF THE SALE IN ORDER FOR YOUR LIEN TO BE PERFECTED. If you were to transfer the title in 21 days after the date of sale and the buyer goes chapter 13 (bankruptcy) then the courts can and will award them the vehicle because you failed to perfect the lien on the vehicle. Keep that in mind with who you are financing. If a buyer goes chapter 13 it is a pain in the ass. The courts and lawyers get paid first, then the lenders, generally it is six months sometimes a year before I ever see a payment and even then they cut down the payment and do it at a prime interest rate. Also if someone has even begun to file the paperwork for chapter 13 you can't contact them or repossess their vehicle. As was stated above, full coverage insurance with you as the lienholder is a must. They will mail you a letter indicating a renewal or cancellation on the insurance. I would not finance a vehicle for someone personally unless I knew them EXTREMELY well and considered them almost family. Otherwise, it's risky business, and there is a reason why I charge 28% interest rates. :D If you have any other questions or would like to see an example of a finance contract let me know.


Rip off. :lmfao: @ 28 %

You are prowling people with bad credit in order to kill them... 28 % interest is highway robbery.
I think there should be a cap on shit like that.
No pun intended.. but damn bro... I know we all have to eat.. but damn..

[thepolecat]

hey they got themselves into a position of bad credit- this is their way to buy out of it again. Building credit is not easy and it takes time. If someone f's it up then too bad so sad. There is a good reason why they cant get financed anywhere else at a lower percentage.

[LightningSpeed]

thanks for the good info, the person buy the car is 18yrs old. i dont think he has credit of any sorts, but he did however pay a mechanic for a inspection, and is going to be paying $1500 for a down payment, which leaves him at $3000 more to go after. but overall this guy seems like a good person, not shady. anyways thanx for the tips, more suggestions would also be appreciated.
THANK YOU IA

[Cool Cat GTR]

Good Post 99SI. I learned from it.

[HiPSI]

thanks for the good info, the person buy the car is 18yrs old. i dont think he has credit of any sorts, but he did however pay a mechanic for a inspection, and is going to be paying $1500 for a down payment, which leaves him at $3000 more to go after. but overall this guy seems like a good person, not shady. anyways thanx for the tips, more suggestions would also be appreciated.
THANK YOU IA


tell him to go get a bank loan. it's not in your best interest to try to finance especially for that little to another private party. if he runs off and doesn't pay you may be ass-out, at the least it'll cost you cash to have it repo'd and try to get the title worked out.

all the people that "seem" un-shady can't be trusted here, just look at all the bad buyer complaints on here where many are because some dummy said they'd take payments on their good will.

he can get a bank loan and get a co-signer. hell i had a co-signed loan when i was 16 and by 18 was financing my own vehicles.

[HiPSI]

Rip off. :lmfao: @ 28 %

You are prowling people with bad credit in order to kill them... 28 % interest is highway robbery.
I think there should be a cap on shit like that.
No pun intended.. but damn bro... I know we all have to eat.. but damn..


it's entirely their choice to pay @ 28%, or take their business elsewhere/save up cash and buy it. if the people want to pay who's to say it's wrong in any way?

[99SI]

Rip off. :lmfao: @ 28 %

You are prowling people with bad credit in order to kill them... 28 % interest is highway robbery.
I think there should be a cap on shit like that.
No pun intended.. but damn bro... I know we all have to eat.. but damn..
There is a cap on it, it's 33%! Most finance companies go up t 33% and that's only if you qualify which generallly is around a 550 beacon score. You should see the credit reports for the people that I finance. I report to the credit bureau, I do not put people in cars they can't afford, I also will not finance a car longer than 30 months. Some people want to come in and put 1,000 down on an 8,000 vehicle, well at 250 or 350 per month it would take forever to repay. I sleep well at night because I know that without me most of my customers would either not be able to go to work because they don't have a vehicle or they will be paying someone else more money, on a longer contract, and really get ripped off. An example of a car I may finance, $5995.00 plus taxes etc. you put $1200 down and pay $250/month that note will be right at 30 months. I only buy from dealers, and I buy good cars. I have people that have financed three, four, even five cars with me over the years and eventually we get their credit built up to where we can get them financed in a much better situation. Most of my deals that I finance will range from $700-$1800 in interest over the term of the note. Also, you have to consider that I am doing two jobs, I am selling the car and financing it. My money is out in the street, not some banks, but MY MONEY! You loan someone who has never paid for anything in their life six thousand dollars wjp has collections placed from phone companies, hospitals, cell phone bills, jewelry they financed, etc. and let them pay you back for two years. See how long that lasts, I can tell you from experience, not very long. It takes about $40k a month to keep my doors open, and I am a small dealer, usually have around 50-60 cars on my lot. Sorry, I just hate it when people say shit like "highway robbery" etc. Some lots are predatory, however, the interest rate is not what makes it that, it's taking very little down and running notes out for four or five years on a car that may not be running by the end of the term on the note, that is predatory. I looked at someones contract the other day who bought a car at another dealer near me. They took $500 down on a car they sold at $6995 and set her payment at $225/ month. She was going to be paying it for 48 months and pay back almost $3000 in interest! That's not right, that's why I don't do it.