OK, Here's the deal.

An Olds lover, 600 miles away, that I've never met, wants to purchase a car I have.

We talking about me financing the sale with X down and X per month for X months.

The car stays with me until paid in full.

Does anyone have any experience selling a car like this? What kind of paper work would protect both parties?

 

Hard for you to loose on this deal as long you keep the car and have in writing the terms that you can sell it again and keep his money.

 

Thanks Richard,

But I need to protect his interest so I don't sell the car while he's making payments. The distance involved doesn't make it practical for a normal UCC deal.

 

Sold a truck like this last fall.Problem is the guy has missed 4 of his last 10 payments, and he has the truck-he is a neighbor and I see the truck everyday This said , I did keep the extra key!
If I was to do again, I would have kept truck and retained a lawyer to draw up a contract between the two parties. Jamesbo,just make sure you keep the car-hope this helps.

Ted

 

Just put in writing the deal with the note that if he misses a payment yuo keep his money and option to resell. should be ok.

 

Ted,

Me thinks if you just go get it,You could be in trouble with the law as you have "other legal remedies" [that BTW are a PITA and cost $$]

 

Why don't you agree to not sell the car to anyone else (it sounds like it wasn't really on the market anyway) and have him set up a savings account separate from his current one and make those payments to himself. Then when he has all of the money, he pays it to you and you give him the car. That way you are not holding his money and nobody loses. Unless, of course, you are actively trying to sell this car.

 

I would never do a deal like that, as you're not in the banking business. Closest thing I'd ever come to that, is getting a non refundable deposit to hold it for awhile, and let him make payments to his own account, until he comes up with the cash. Even that's a pain, as you'll need properly written up legal ducuments. If you both agree on that, make sure you get his signature on them.

 

Agree, just a "gentlemen's agreement" to hold for X months until he can pay in full and leave financing to real financial institutions. If not hard cash, do the final transaction during business hours at his bank (or yours) to verify funds before you hand over car/keys/title. Wait until funds clear your account if you have any doubts or concerns.

 

The only problem I have with that is, If he doesn't do his part. In X months, I'm right back whaere I started and all I've done is taken the car off the market for X months.

He wants it............I want to sell it. So we have 2 legs of the tradional 3 legged stool that makes deals come together. Financing is the only leg missing.

 

what car are you selling ???

 

Tell him to get a classic car loan and owe the money to them.

 

69 442 hard top non matching #'s.

Origionally a Lancing built Trophy Blue car wit black vinyl top and black interior.

Stipped to bare metal, all rust removed, primed and ready for paint.

New 455 and rechrome bumpers,

Needs to be wet sanded, painted, and interior.

Long story made shot. My Frigg'in brother in law sold his body shop in the middle of finishing up my car and brought in back to me on a trailer.

I've been tripping over parts in my garage cause I don't want to put it back together until it's painted long enough. It's time for it to find a new home.

I looking for a 69 W-30 drop top. Yeah, I know..........Good Luck

 

I agree with this too. Nothing but heartache (maybe for both of you) can come from you holding the money.

 

How long is said x months and how much up front ? Good paper work and how can you get hurt you just have to trip over it for another few months or years or decades If not payed of by or payment missed said sale is off and you are free to re-sell . Isnt that how conract for dead work's ?

 

Depends on the person i would say... What i did with my H/O was a similar story... i got approved with the bank for 80% of the cost and i set up a payment with the owner for x months at x dollars for the 20% down.

Big thing with that though is i am military and i have an allotment that comes out of my check every month that i didnt even see.... If i missed a payment all he had to do was call my first shirt and put me in a world of hurt.

The way we did payments was put it in a bill of sale. And if this guy is a serious buyer he would have no problem coming to you to look at the car and setup everything in person. That way it can be notarized and legallized signatures. Just make sure ALL details are in there with all loopholes avoided.

I am all about payments and it does seem like something to look into. What i would do is put the money he pays you into a CD/savings account. That way if he backs out or cant afford it you can refund his money, with a "restock" fee . If you setup a CD and keep putting the money into it, you would at least make some money from the guy with interest ... That would work if you arent hard up for money IMHO.

 

Yup. Too much downside Risks aplenty as well. Even with a contract, you now have the responsibility to keep the car out of harm's way for the guy. God forbid its stolen, vandalized, your house burns down, whatever...

When I sell aything, I won't even take a deposit. Did that once, and after getting jerked around for a good long while, you can guess what happened. Now, I tell people who want to leave a deposit: "come back when you have all the money, if its still here, its yours".

You can't be THAT desperate to sell.

By the way, ln the subject of selling a car, I have a 4 speed '67 442 convertible, but it has some issues that I'd just ans soon not broadcast to the whole wide world. SO...anyone near NJ who is interested, send me a PM if interested. Asking $17K. (I'm serious)

 

In lieu of the new news, with the car in the middle of a restoration, think I'd pull the car off the market until finished. The earlier mention of a non refundable deposit could only screw things up right now. Sure you'd maybe get to keep $500 bucks in six months, but you'd still have a half restored car, you could of had finished by now.

 

I likey this deal...

 

if youre even considering financing the guy, you need a lawyer..a contract lawyer...by accepting and cashing his checks/pament, you are obligated to finish the contract, if he misses a payment you cant just sell it to the next guy, you have to foreclose on it...lot of advice here, and if your silly enough to ask on a car forum, your asking for trouble...spend a few bux and ask a lwayer..not your car buddies...

there are laws in every state for transactions and many are in place to protect the buyer more than the seller...if he has a legal claim to the car and you sell it, wheather you have some scribbled contract or not you may be obligated to pay his money back..you could loose your butt...

Ive been selling cars and parts my whole life, ive seen this happen many times..


...even if you have possesion of the car...when he puts money down..hes the owner, an you puting it all on paper without a lawyer is really foolish...and you are obligated to finish...

and he could dick you around for twice the original contract terms..all hes got to do is make 2/3s of the payment or half etc, and on and on it goes...if you do finance it, there needs to be a penalty for late payments and a penalty if he doesnt finish paying on an agreed time, and if you have a contract, you cant throw it away because he stopped paying, you need to follow the laws in your state and forclose/reposess the car thru the courts....sound like fun? still want to do it? get a lawyer...the aggivation factor should justify the call to the lawyer..it has the potential to get ugly...and he needs to get insurance on the car..what happens if it get damaged like others have said...man you are not a bank, if you get a loan to finance a car they make you get insurance..and put them as a lienholder, if the insurance stops, they get it and tack it on the loan...they protect themselves, you need to also....the hassle factor is getting bigger and bigger...

you have some control of your life but no control of his, he could loose a job a spose etc and then its all screwed up..if he can afford to pay you, he can afford real bank financing...if he cant get bank financing theres the RED flag youre looking for right there!

 

I'd advertise the car and tell the guy to take a leap. Cash on the barrel head or no deal.

 

Don't know about your state, but in Illinois, you can put the car title in his name, with you as the leinholder!
Title comes back to you.
Safeguards both, as it's not his until you sign it, and neither can you, with his name on record!
Just make it so if he misses _ payments, it reverts back to you!!

 

. Did you see the one in this months JWO?

 

Seems like you're really going out of your way for this guy Jamesbo, is he a relative???

His name wouldn't happen to be Wimpy would it??
"I'll gladly pay you Tuesday for a 442 today".

 

Thanks for all of your comments/suggestions.

Seems like there is a wide field of thought on the subject. There may be no way to Keep it simple.

No Allen, He's not a relative. If he were I would deal with the SOB.

I wasn't aware there is financing avaliable for project cars.

What I'm trying to do is

A] Get the car out of my way
B] Help an Olds guy out
C] Avoid the normal hassel of e-bay/Craig's list buyers

Maybe the thing to do is call a frigg'in lawyer. Which BTW, I hate doing.
But if I sell it one e-bay or Craigs list the time I waste talking and waiting for idiots to show up, I'd be better off by the hour flipping burgers and McDonalds

 

For whatever it's worth, I've done this once successfully, but it was to sell a car to a local high school kid for $1,000. He just kept coming by every 2 weeks and giving me $100, until he had paid the price and I drove the car over to him. No problem.

In your case, I like the idea of having him set up a bank account, with your name on it as the "in trust for" person, and statements mailed to you every month, with a separate amount of money directly to you up front as a non-refundable deposit, for payment in full by X date, with a written agreement that you will not sell the car to anyone else as long as deposits are being made, and that he will pay you at the appointed time, at which time you will sign over the car.

That way his money never leaves his possession, but you can see that he is making payments, and he's got a few hundred bucks out to you that he stands to lose if he walks away. He can't argue that he has already bought the car, because he's just been putting money in his own bank account.

Just my 2¢.

- Eric

 

I have done similar deals in the UK where the details of law are probably different.
I t was a hassle as the prospective buyers kept nagging me to let them have the car after they made a few payments.

Now my terms are strictly;
Give me all the money and I'll give you all the car and all relevant paperwork.

If the guy can't pay all the money now and you agree a financing deal what happens if he gets in financial difficulties for some reason, loses his job, gets a big medical bill or some other unforseen circumstance?.
Loan companies are in business to take care of such issues, let paying be his problem, not yours.

Roger.