selling a car without all the money down?

[driftking777]

So I have situation where I have my 97 4runner for sale. I had a guy test drive it tonight, and he liked it. However problem is I'm selling it for 7k and he only has 3k to put down on it. He's in the process of selling some stuff (worth easily the rest of the pay off). The guy said I can write up a contract (and get it noterized) and hold said stuff as collateral until it sells.

Background on the guy. Recently divorced, just got custody of his daughter, airforce enlisted. Ex-wife ruined his credit, doesn't have a vehicle.

Guy also said we can setup his bank account to give me $500 out of every pay check until vehicle is paid off. I would be keeping the title and extra keys until full payment. Guy also said he would get me his 1st sarges number for me so if anything were to go wrong I could contact him.

So zs, would you do it? Also any good pointers?

[driftking777]

He would also be getting full coverage on the vehicle right away. Plus I also have full coverage.

[Sckitzo]

He's Air Force Enlisted?

Make sure you get the contact info for his First Shirt, that way if he tries to screw you all it takes is a phone call.

Use that on top of the contract and other stuff assuming it's legit, but especially if this is a younger dude, the threat of getting his leadership involved in his financial affairs should be a nice reminder to pay you on time.

Edit: Crap, should have read the rest of your post....

I'd do it if you have a good gut feeling about the guy and that Shirts contact info check out. But that's me and assuming the guy feels legit.

[BigDaddyTX]

I've done it for people I never thought would actually pay, but then the car was only worth $500, not $7k. I'd consider it seeing as he's active .mil, but the issue I have is of course he wants a $7k car, but he's got $3k which can get him something to drive around just not as nice, so it's not like you're his only hope of getting a vehicle. Also, that's a lot of money and time; $500 a pop is 8 months you'll have to wait to get your money, and assuming you don't charge him interest you're losing money on the deal.. of course no one pays asking price so it could be considered the wiggle room money.

[TacAir]

I'd call his Shirt and talk with him/her.
Does you no good if the guy ships out to the 'Stan in two months and he gives the rig to his mother... or gets drunk and totals it.

I've seen this situation a metric-crapton while active. Sad story - but, your money, your risk.
I would suggest that he (the airman) visit the "lemon lot" on base to find something he can afford.

FWIW, diviorce seems endemic in the military today, so that part is not at all odd.

[dukman]

Personally, I don't care what story they give me. If they don't have the money, they don't get the keys. There are just too many ways to get screwed over. Sure you might have collateral.. but selling collateral to collect the full amount that is owed can be a headache all its own as value is in the eye of the beholder. That awesome (insert collateral item here) might be "worth" $1,000, but if you have to let it go for $300 just to recoup SOME of your money, well, it just sucks.

[driftking777]

Also, that's a lot of money and time; $500 a pop is 8 months you'll have to wait to get your money, and assuming you don't charge him interest you're losing money on the deal.. of course no one pays asking price so it could be considered the wiggle room money.

It would be 500 a paycheck, so 1k a month.

Personally, I don't care what story they give me. If they don't have the money, they don't get the keys. There are just too many ways to get screwed over. Sure you might have collateral.. but selling collateral to collect the full amount that is owed can be a headache all its own as value is in the eye of the beholder. That awesome (insert collateral item here) might be "worth" $1,000, but if you have to let it go for $300 just to recoup SOME of your money, well, it just sucks.

As far as selling things goes yea it would suck to have to do, however. The collateral would be two car titles ( two cars he's parting) and a engine and transmission from a 07 subaru sti ( worth about 6-8k by itself)

[Mad_Maxx]

In my experience, do not sell unless you get the full payment in hand before letting the car go. Been burnt by people i thought could be trusted by shit like this. You are not a bank. If he does not have the cash to buy the car, let him buy something cheaper.

[aus.templar]

Well I don't know you and I don't know him.
However if I was you (from the information provided) and he seemed honest (and I confirmed his ID with military personnel) then I'd be fine with that.
Even if it did take a few months to get all the money in installments, I wouldn't mind (in my current financial state, I don't know yours) and I like to help fellow military personnel in any reasonable way I can.

[TDW586]

He's Air Force Enlisted?

Make sure you get the contact info for his First Shirt, that way if he tries to screw you all it takes is a phone call.

Use that on top of the contract and other stuff assuming it's legit, but especially if this is a younger dude, the threat of getting his leadership involved in his financial affairs should be a nice reminder to pay you on time.

Edit: Crap, should have read the rest of your post....

I'd do it if you have a good gut feeling about the guy and that Shirts contact info check out. But that's me and assuming the guy feels legit.

I second this (I assume "First Shirt" is Air Force for his 1stSgt or equivalent). Between his leadership and the contract, I don't think it's much of a risk.

[57plymouth]

In my experience, do not sell unless you get the full payment in hand before letting the car go. Been burnt by people i thought could be trusted by shit like this. You are not a bank. If he does not have the cash to buy the car, let him buy something cheaper.

This.

Payment in full in cash before transferring the title or the keys. Like the saying goes: "In God we trust, all others cash."

[crypto]

Voting against extending credit to the guy.

[Regular Guy]

In my experience, do not sell unless you get the full payment in hand before letting the car go. Been burnt by people i thought could be trusted by shit like this. You are not a bank. If he does not have the cash to buy the car, let him buy something cheaper.

This.

Payment in full in cash before transferring the title or the keys. Like the saying goes: "In God we trust, all others cash."

+1. I have done the payment plans thing and every single time except with certain people I know very well who are members of a certain society I'm in, have been burned every time. People have burned me for $5. I don't get it, but if you give this guy the keys, he will burn you. You will not get your money. This will be a massive pain in the ass and you may never see your money.

DO NOT DO IT.

[Braxton]

Learn from my stupidity.

DO NOT DO IT.

In god we trust, All others pay cash.

[nateted4]

See, being enlisted sans car sucks, but ain't nobody gonna die. His food, sleep, shower and work can all be within walking distance. What I'm saying is don't feel bad for not extending him credit.

Even if he lives off base and is collecting BAH, he can move into junior enlisted quarters on base or have his LPO (or whatever you guys call E-6) give him a ride to work.

If he pays you in a timely manner you are still out your lump sum of cash and had to wait to be made whole. If you have to collect more forcefully, then you're looking at a a world of headache even if you do get his command involved.

He'll live without a ride, but there is no upside to you doing this deal. The utilitarian in me sees no moral imperative to engage in this loan.

[yossarian]

Background on the guy. Recently divorced, just got custody of his daughter, airforce enlisted. Ex-wife ruined his credit, doesn't have a vehicle.

Then he doesn't need to be four grand in the hole. Especially on a private loan that won't help patch up his credit. Personally I don't think its a good idea for either of you. $3000 will get decent set of wheels free and clear.

[dukman]

Personally, I don't care what story they give me. If they don't have the money, they don't get the keys. There are just too many ways to get screwed over. Sure you might have collateral.. but selling collateral to collect the full amount that is owed can be a headache all its own as value is in the eye of the beholder. That awesome (insert collateral item here) might be "worth" $1,000, but if you have to let it go for $300 just to recoup SOME of your money, well, it just sucks.

As far as selling things goes yea it would suck to have to do, however. The collateral would be two car titles ( two cars he's parting) and a engine and transmission from a 07 subaru sti ( worth about 6-8k by itself)

Car titles aren't worth shit. Hell, cars someone is parting ain't worth shit until you find the right buyer. (Scrap value is only about $250 each) I have tried to part a couple cars in my time. Even a newer car is worthless if you can't find the right buyer. If that motor is worth 6-8k by itself and he wants your ride bad enough, he should have no problem "dumping it" for $4k to add to his $3k to give you the full $7k within the next week or two.

[Sckitzo]

He's Air Force Enlisted?

Make sure you get the contact info for his First Shirt, that way if he tries to screw you all it takes is a phone call.

Use that on top of the contract and other stuff assuming it's legit, but especially if this is a younger dude, the threat of getting his leadership involved in his financial affairs should be a nice reminder to pay you on time.

Edit: Crap, should have read the rest of your post....

I'd do it if you have a good gut feeling about the guy and that Shirts contact info check out. But that's me and assuming the guy feels legit.

I second this (I assume "First Shirt" is Air Force for his 1stSgt or equivalent). Between his leadership and the contract, I don't think it's much of a risk.

Pretty much, though for us it was a position more then a rank.

Folks seem pretty split on this, I will add I have never been burned before in deals like this so this is why I am suggesting possibly going for it.

And the 500 a pay check thing is pretty common, you know you will get your money, but he can cancel it any time he wants. If you did go for it, maybe ask him if his base legal office can write a form of contract up.

And yeah, divorce seems to be the norm any more, I know my unit was sitting at about 75%

[p00ch]

In my personal experience no cash no car , a few years ago I got ripped off on a vehicle. I listened to his sap story and gave him the benifit of a doubt and never seen the vehicle again he started out paying like he said he would and got about half of it paid for and I never heard of him again. I still have the title but I had the last laugh.

[raptor]

If you sell him the car you need a note and lien contract for the amount of the debt. You should then register the lien with the state DMV to perfect you lien against the car. If he fails to pay you then have to go through your state's appropriate legal process to legally repossess the car. If you have screwed up any one of the documents you lien may or may not be valid.

If it is worth the trouble to record the lien legally then sell it to him. My personal opinion is that you are better off not extending credit for cars unless you are in the "buy it here, pay here" car business.

[RoneKiln]

3k can buy a quality used honda civic that will run reliably for years with minimum upkeep. Sounds like you're both taking unnecesary risks for minimal return.

[Ad'lan]

Payment in full in cash before transferring the title or the keys. Like the saying goes: "In God we trust, all others cash."

I won't even give Gods credit, if you can't scratch a window with it, I won't accept it.

Would you sell him the car for the cash + his collateral? If yes, then maybe go for the deal, if no, especially if you can't afford the financial loss, then not just no but Bloody He'll No!

[TravisM.1]

Fuck that noise.

He may be a stand up guy and all that, but you're looking at (best case scenario) a prolonged payment schedule or (worst case scenario) him just not paying up the money owed.

Tell him to go buy a $3000 car.

[Tater Raider]

In god we trust, All others pay cash.

QFT!