Lien Contract for private party vehicle sale ? ? ?

jlbf0786

New Member
Joined
Jul 21, 2011
Location
Charlotte NC
Im going to be selling my 96 4x4 Ram to a guy, but since he doesnt have enough to buy it outright im thinking of doing a LIEN on the truck where he can pay me 3/4 of the total and i'll hold the TITLE.. he'll take the truck.


Can anyone tell me if I need to get a NOTARY to sign a legal document or do i need an actual legal contract ?

He's paying me $1100 of the total $1500 (I dont feel the need for a notarized document).. but my wife does.

WHAT DO YALL THINK..
ANYONE EVER SOLD A VEHICLE, HELD THE TITLE AND LET THEM GIVE YOU THE REMAINDER AT A LATER DATE?
 
Simple document stating all the specifics as to how much down, and how much of a payment to be paid, within what amount of time. Have it notarized. On the title as cardude stated you can put a lien on it, it will be sent off, he can go ahead and get insurance and be driving it, but title will come back to you. When he's paid it off, you sign off on the lien and give it to him, all done.
 
Take the $1100 and hold the truck for him until he gives you the rest. No way would I let someone take off with a vehicle I was selling unless I had the full amount CASH in hand. See how long it will take him to come up with the other $400. Give him till that deadline. If he doesn't meet the deadline then agree one a dollar amount you will keep for holding the vehicle for him.
 
$1500 ?

Take a $200 non-refundable deposit from him. Make 2 receipts clearly stating how long of time he has to come pay for the vehicle. Clearly stating that he will NOT get his deposit back. Tell him to keep saving..

I think it would cost you more than your truck is worth to actually attempt to collect the $400 owed if you actually had to..


I'd sold lots of stuff and held the title.... But I also hold the item with few exceptions. An exception would be I know the person well or possibly a good member of a reputable club or similar. Good luck
 
I'm w/ Mike & yager on this.
While what you are doing is very honorable, do you have a reasonable means to actually collect that remaining $400, or the vehicle, if he doesn't pay you? In reality it will be very troublesome and time consuming to do so. I wouldn't want to worry about trying to handling repo-ing a vehicle myself...
 
One more piece of food for thought.
You hold the title, turns out his license has been suspened, he drives drunk and kills someone...guess who just found themseles in a civil suit for aiding his ability to drive.
 
Ron said:
One more piece of food for thought.
You hold the title, turns out his license has been suspened, he drives drunk and kills someone...guess who just found themseles in a civil suit for aiding his ability to drive.
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Now that would be a freakin' nightmare if there ever was one!!!
 
Ron said:
One more piece of food for thought.
You hold the title, turns out his license has been suspened, he drives drunk and kills someone...guess who just found themseles in a civil suit for aiding his ability to drive.
Click to expand...

I gotta call B.S. on that one. Have you ever heard of that happening? For God's sake, all he's doing is financing the vehicle. Ever heard of a bank getting sued for financing some drunks vehicle? If you have please point it out to me, because I've never heard of that happening before. Most people finance vehicles instead of buying outright, so this isn't exactly uncharted waters.

But as for wether you should do it or not, can you afford to lose the money? If not, then don't lend it to him. If it's really not a huge deal if you never get paid, and you trust him, then go ahead. The best rule of thumb is to never lend money that you can't afford to lose.
 
Roughshod said:
I gotta call B.S. on that one. Have you ever heard of that happening? For God's sake, all he's doing is financing the vehicle. Ever heard of a bank getting sued for financing some drunks vehicle? If you have please point it out to me, because I've never heard of that happening before. Most people finance vehicles instead of buying outright, so this isn't exactly uncharted waters.

But as for wether you should do it or not, can you afford to lose the money? If not, then don't lend it to him. If it's really not a huge deal if you never get paid, and you trust him, then go ahead. The best rule of thumb is to never lend money that you can't afford to lose.
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Banks carry insurance just for that reason...and require proof of insurance and drivers license etc.
 
legaly you are responsible for the vehicle but can only be charged if you new his DL was suspended or revoked, there is nothing wrong with a simple paper stating he will pay you the rest but it has to have a notery. get a copy of his DL, insurance and a piece of mail with his address on it.
 
If you have to "finance" $400 to buy a $1500 vehicle, odds are pretty good that you are a HUGE credit risk to begin with....
 
Roughshod said:
I gotta call B.S. on that one. Have you ever heard of that happening? For God's sake, all he's doing is financing the vehicle. Ever heard of a bank getting sued for financing some drunks vehicle? If you have please point it out to me, because I've never heard of that happening before. Most people finance vehicles instead of buying outright, so this isn't exactly uncharted waters.
But as for wether you should do it or not, can you afford to lose the money? If not, then don't lend it to him. If it's really not a huge deal if you never get paid, and you trust him, then go ahead. The best rule of thumb is to never lend money that you can't afford to lose.
Click to expand...

Kind of a different senerio but he can be dragged into a lawsuit because he's name is on the title.

I owned a 92 bronco and needed some brake work. My brother was driving it to my dad's for me. Well on the way he had an accident and hurt the guy pretty bad. After the accident and insurance was paid out I never thought anything of the wreck until right under a year had passed. I got a letter from from an attorney saying I was being sued for $300,000.:shaking::mad::shaking::mad::shaking:

I called my agent and took her the letter. Next thing I know I was in an attorney's office along with my brother going over details about the accident. Then at a depisstion (SP) with the man's attorney and his wife. They didn't want to settle out of court so we went to court.

The ONLY REASON I was being part of the lawsuit was because my name was on the title. Now my part was dissmissed by the judge. He said I had no part in the accident other than being the owner of the vehicle. Boy talk about a relieve.

It all came down to a couple just sueing me and my brother to get some money. But it put me through about 3-4 months of stress.

So he CAN be suied for being the owner of the vehicle should the guy get into an accident before coming the sole owner of the truck.
 
HDMike said:
Kind of a different senerio but he can be dragged into a lawsuit because he's name is on the title.

I owned a 92 bronco and needed some brake work. My brother was driving it to my dad's for me. Well on the way he had an accident and hurt the guy pretty bad. After the accident and insurance was paid out I never thought anything of the wreck until right under a year had passed. I got a letter from from an attorney saying I was being sued for $300,000.:shaking::mad::shaking::mad::shaking:

I called my agent and took her the letter. Next thing I know I was in an attorney's office along with my brother going over details about the accident. Then at a depisstion (SP) with the man's attorney and his wife. They didn't want to settle out of court so we went to court.

The ONLY REASON I was being part of the lawsuit was because my name was on the title. Now my part was dissmissed by the judge. He said I had no part in the accident other than being the owner of the vehicle. Boy talk about a relieve.

It all came down to a couple just sueing me and my brother to get some money. But it put me through about 3-4 months of stress.

So he CAN be suied for being the owner of the vehicle should the guy get into an accident before coming the sole owner of the truck.
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I am no attorney, but I think a simple clause in the bill of sale staring that the buyer is responsible for all claims, accidents and problems involving the vehicle from the date of signing would cover his butt sufficiently. Also that the buyer is responsible to keep a valid license and keep the vehicle insured.
 
Something my dad told me once... "Anyone can sue anyone for anything at any time... It's just a matter of whether or not they can win. In the process, though - only the lawyers make money."

I've found through experience that thos words are true, and that in most instances, it's easier to avoid instances where I feel anything is outside the normal realm of business and finances and to risk wording contracts correctly and getting lawyers involved.

The $400 in question would be eaten up with just a visit to (or even a phone call from!) an attorney.
 
ManglerYJ said:
Something my dad told me once... "Anyone can sue anyone for anything at any time... It's just a matter of whether or not they can win. In the process, though - only the lawyers make money."
I've found through experience that thos words are true, and that in most instances, it's easier to avoid instances where I feel anything is outside the normal realm of business and finances and to risk wording contracts correctly and getting lawyers involved.
The $400 in question would be eaten up with just a visit to (or even a phone call from!) an attorney.
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^^^ This was my point.
If I wanted to hold a lien on 250k, maybe.
$400? no way.

Not saying they would win, necessarily but just the headache aint worth it. I'd drop he price $400 before Id lien and hold title.
 
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