VetteSteve

If a corvette is sold person to person, and the buyer is asking the seller for a “personal loan on the car”. What type of paper work would be needed to write up between seller and buyer? For instance…

Buyer agrees to pay X amount monthly for it directly to the buyer for X amount of months.

What additional conditions would needed to be in the contract? (ie. Transfer of title, Duration of payments, Seller and Buyer names, etc. )
:hat


[Modified by VetteSteve, 5:46 AM 1/7/2003]

trw

I am not a lawyer.

But it needs to state:
*the sales price
*date of sale
*interest %
*payment amount, date due and penalty for late payment and when it is late.
*sold as is
*seller needs to be lein holder to the title and must have insurance in their name

That's about all I can think of off the top of my head.

Terry

mapman

VetteSteve,

If this is a friend, then personal loans are not good things to do. Owed money has a way of coming between friends. What happens when you friend is late paying - do they avoid you - do you loose your friend?

If not a friend, why don't they get a loan from a financial institution? If they are such a poor credit risk that they cannot get a loan from the bank, do you think they are going to make payments to you?

The interest % charged is a reflection of the chance of default. Banks spread their risk over many loans. Can you afford to risk the loss of the car and a default in payment?

Personal loans are generally not a good idea, especially not between friends or family.

Over the long haul, it is better to keep your financial transactions at arms-length.


[Modified by mapman, 8:04 AM 1/7/2003]

fauxrs

:iagree: However, many, if not all, banks will not loan money for a car as old as a C3, unless it attached to one of those loan shark car dealers you see around. However I gotta agree with mapman on this one, unlike a bank, you probably cannot afford to have the buyer default on the loan.

If it is a friend, keep him as a friend, not as a debtor.

OHSIXX

Why doesn't the buyer get the money from a bank?

Robert N

You should be able to get a loan for a C3 from a bank. The rate will be based on the credit of the buyer and the term. Generally, the term for older cars is 3 years or less.

Personal loans are a bad idea. If you are selling to a private party and they are not a friend, family member, work colleague, then the loan is safer. You are essentialing "carrying the note" as one would with a mortage for a home sale in a similar manner.

Spend a few bucks and get an experts advice. You will want a lien on the title since it wil have to be transfered (part of the sale process).

The list trw offered is great with ine exception. The insurance should not be in your name, but rather that of the buyer, and you need to state that the buyer "agrees to carry insurance on the vehicle for full comprehensive and collision with all associated coverages at the state minimums with a deductible of $500 or less per occurrence"

The last point is key. If there is no comprehensive, or the dedcutible is so high that the buyer could not pay if the car was wrecked or totaled, your lien on the car would be worthless. The buyer would still owe for the amount of the loan, but that is harder to get than a return of the car.


[Modified by Robert N, 9:14 AM 1/7/2003]

HDIronman

Got my loan for my C3 from my Credit Union. Term was 60 months and int rate was 8%. They valued the vehicle at $24,500 and financed the whole purchase amount (way less than their value).
:D :D :D :D :D :D :D :D :D :D

page62

Here's an example for my neighbor. He just told me the story yesterday:

My neighbor had an F150 which he leased. He then let a friend use it as long as the lease payments were made. Guess what? The guy couldn't make the payments. My neighbor had to repossess the truck from his friend! And to make matters worse, the guy had put 100,000 miles on the truck (the lease had a mileage limit).

Somehow, personal loans and business deals among friends often end in acrimony. Why this is so, I don't know! :boxing

MikeC

Maybe the person should try and get a line of credit. I bought my last truck this way and the one before it, I got a personal loan.

It isn't too hard. I would never be a financial institution for someone else( other the kids going to school) It is just going to be too much of a PIA

LAvetteman

Don't sell anything you wouldn't want trashed and not paid for....

BeachinVette

I would not do it. I have been screwed by freinds and family. I sold a car to my brother-in-law 3 years ago. He still owes me mony. right before Christmas he called and asked my wife to borrow $200.00 so he can by his kids some presents. He is working but he was not due to be paid till a couple day's after Christmas. So I figured he would pay me back he said he would put a check in the mail that day and my money order to him would pass his check to me in the mail. Guess What. No check and he does not answer his phone. Oh well at least I should not have to worry about him calling to borrow money again for 3 years.
Bob

page62

Y'know I just had a thought . . . perhaps Steve is trying to borrow the money!

OK everybody, now what's your advice? :D

Robert N

My advice still applies, only from the other perspective. Get everything as mentioned in detail and especially the insurance.

This prevents the possiblity that Steve gets hauled into small claims court over misunderstood arrangements. The insurance guarantess that the car is covered so the loan could be paid off if something happened.

Wrencher

Bad, bad, bad idea! If a guy can't come up with the scratch, something's wrong and you'll be the loser. The guy is probably a great friend, but I wouldn't sell them a car no matter what.

Hans

74FLCONV

PeopleFirst (www.peoplefirst.com) sent me a (basically) blank check. Rate? 6.25% (if you sign-up for automatic withdrawal). Application/Approval process took 2 days. Had check on 3rd day.

Highly recommended.

D. Ocean
Miami, FLA

Paul L

Go to a bank. Avoid the downstream misery.

mengbar

You can go to your public library and xerox copies of contracts that are for public use VetteSteve. That ole library has a lot of good public stuff in it. Your tax dollars at work.

I would really avoid holding paper for someone these days. There are to many ways to get fxxxxx. Especially for a vette. I'd have to hold something very valuable (permanently in my house) as colateral before I would do that. At least 50% of the value. I guess that item would cover repair when I got it back. They could have it back when I got paid in full.

:smash: :smash: :smash: :nonod: :skep:

foundvettelifeisgood

:iagree: This is what I did, and it worked great.

Maurice

If I was the seller :

Buyer agrees to make payments on car. When payment is made in full, the car will be signed over and the car will be released. Payment schedule follows. I will provide receipts for each months payments. If payments fall more than 60 days delinquent, this contract is null and void and no money will be returned to the buyer.


If I was the buyer:

Get as little in writing as possible and try to get him to sign the car over to you as quickly as possible because you can completely screw him over for any little thing you want, you can also renegotiate the deal since the car is in your name and there is very little paperwork.

VetteSteve

Actually I am the one buying the vehicle. Being only 19 years old I have no mortgage, security, credit etc. to for collateral. Thus a personal payment plan! : ) Well I figure I need a PROMISSARY NOTE and a VEHICLE BILL OF SALE. Below are links to them both. Any suggestions greatly appreciated?
http://www.firsttraderegistry.com/bill_of_sale.htm
http://austinweddings.com/promissary_note.html

*PS I didn’t mean to have a poll. I was just asking for more info about what needs to be on the contracts. Thanks for all the NO WAY answers, u got my hopes up!
:hat