Taking Payments for a car I'm selling

[sawtooth4x4]

A guy up in Montana wants to buy my BMW.

He wants to make payments. He went through a crappy divorce and probably had to do bankruptcy. He wants to pay it off in 3 months to the tune of $835 a month. I went to school with the guy in elementary and junior high.

Do you think this is legal and okay? Trying to cover my ass......

I think i'll make a contract.

Stipulations of the contract:

• I keep possession of the car and title until its fully paid for. I will not drive it, I'll sit in my garage.
• Payments must be made on such and such day of the month. 10 day grace period. If payments are not made within 1 month buyer forfeits ownership of car and all payments.
• Once vehicle is paid for in full, buyer must retrieve the vehicle within 1 month. After two months vehicle will be assumed abandoned and seller will auction car to the highest bidder.
• A $500 non-refundable deposit is required to begin contract.
• Acceptable forms of payment are as follows: Cash or USPS Cashiers Checks.

 

[ID Bronco]

If you keep the car how can you go wrong?

 

[DAA]

I've done it twice. Worked out fine both times. First time, I let the guy take the truck. He only made the first two (of six) payments, then seemed to be blowing me off, so I showed up at his work (an auto repair shop, somewhat ironically...) and re-po'd it. The shop owner came out, tried to stop me, until I explained the situation, then he just shrugged and walked away.

Re-sold the truck for a bit more than I had charged the first buyer originally. So, it all worked out pretty good, I thought.

Second time, I did it like you are planning. I held on to the car and title until it was paid off. The guy was late on a couple payments. Didn't blow me off, let me know he was short and was going to be late, so not a biggie, to me. Ended up getting all my money, just a month later than expected, wasn't a problem for me.

- DAA

 

[Troop92]

I don't see any issues with legality, and if you're keeping possession, I'd agree with Bronco. Should be good. Sucks for him, but you're potentially doing him a favor.

Only question I have is your 10-day grace period. Does nothing happen between that and the month forfeiture point? I mean, if it's due on the 1st, the grace period runs through the 11th, and then.... What? I'd throw in there that you, at that point, reserve the right to actively try to sell it, and if sold, will return him his money less his $500 deposit or total sum.

 

[sawtooth4x4]

Thanks.

I'll clairify the grace period stuff. it doesn't make much sense. I like your idea Troop.

Now I can pick up another Range Rover classic I have my eyes on. LOL

 

[Caleb]

The one thing I'd note is once the contract is made, any money paid towards it is yours...end of story. If you take loan (essentially what he's doing) and you stop paying on that loan and the bank repos the item, they don't give you money back. The only difference is you're giving him that loan interest free. So I'd do 10 day grace period, after that you can actively sell it and if it sells, he's SOL. If it hits a month, he's SOL. Should hopefully keep him motivated to pay on it. It's all a non-issue if he sticks to his contract.

 

[Troop92]

So I'd do 10 day grace period, after that you can actively sell it and if it sells, he's SOL. If it hits a month, he's SOL. Should hopefully keep him motivated to pay on it. It's all a non-issue if he sticks to his contract.

Thinking about it, I agree with Caleb. You're the one that's accommodating him.

 

[Kiel]

hopefully you are not close friends, because I don't see this ending well, if he doesn't pay. Somebody is going to end up butt hurt. Besides if he has 835 of disposable income a month why isn't he saving it up?

 

[jeeper]

I got burned really bad once on a deal like this.. I let them take the car and title home.. (I was 17, big learning moment..)
Payments are fine, but car stays with me know.

 

[sawtooth4x4]

No not a friend other than a facebook friend. i know him from elementary. we had the same teachers. not someone that I am fond of.

 

[frieed]

I sold a tent trailer a few years back for $2000. I took a $200 non-refundable deposit via Pay-Pal to hold it for 2 months (guy was out of state and had a trip scheduled for later).. Worked out fine

 

[ricsrx]

my experience was bad, a coworker, they took the car but not the title, 2 months later she got fired and diapered, called the vehicle in as stolen, no luck it was gone. then about a year later i was driving down state street and my jeep passed me by....
i followed her home, the tags were current, she still had it registered in my name and my address...

when i tried to use my spare set of keys, the ignition had been changed, i called the cops, title in hand, he said possession is 9/10's of the law and it was not his problem, but i could have a towing company repo it, so i did and they did, then i had to deal with the bastard towing company racket... ****ers....it cost me $500 to get it back from them, instead of the quoted $130...

the vehicle has lost most of its value and the condition was poor, so what do you do with a beater Cherokee??

drive if like you stole it until it dies, or let your 2 daughters drive it, oh same thing.. hahaha...sorry Brook and Rachele

 

[Gravy]

If you're holding on to it, I see no issue.
Just be prepared to deal with crap if the guy is late. I loathe calling in debts.

 

[rockreligious]

Too much of a headache, Ive done these kind of deals before, never worked as well as planned... People who need to do these kind of deals are usually flakey and you have to hold their hand through the process. Id rather wait longer to get a solid sale than have to waste my time and energy playing bill collector.

 

[MikeGyver]

This doesn't even make sense... If you're keeping the car until hes paid for it completely, why on earth doesn't he just pay a $500 holding deposit and then save up the money himself and pay you all at once...