Selling a car, to finance it or not

[hitch]

I've had the woody for sale now going on 4 weeks. I've received tons of calls, mostly tire kickers, but a couple of serious buyers. Sat around all weekend waiting for a guy to come through with the $ but now calls and said he needs another week. I've got a friend of the family (teen kid) who really wants the car, but no money. He's got about 1/2 down. He just got his 1st job so the ability to make payments is much better now. There is no father in the picture and I'm considering helping him out. What is worse case, I loose my money or the car. I'd be pissed, but it would not change my life. I think back on how a couple of people helped me get a start in life and was thinking of "passing it on". What cha all think? Stoopid or the right thing to do by bringing another rookie to Ratsun?

[Laecaon]

I say do it, as long as he understands what a contract is and he must pay you as he gets the money. Hopefully he is the type of kid who understands what type of gift this is and learns from this.

[lil89ram50]

do it if you trust the kid. maybe get some collateral

[joker72z]

If you trust the young fellow, draw up a promissory note with terms of repayment. Something that you both can live with and he doesn't feel stuck to pay it all at once. Better to get a little at a time than none at all. Make sure he understands that no money means no car and get him to tell you how much he can afford and how often. It'll build confidence and responsibility in the young man and you will have helped him along the way.

 

Can you tell I'm a banker? LOL

 

Good luck and good on you for wanting to help him out.

 

Chris

[Muad'Dib]

It's always safest to go through a bank to organize this. Because given a situation ( even if it's not his 'fault" ) that he would be unable to pay you back... This becomes the banks problem and not yours.

[dennis]

how old is the kid? You cannot legally get into a binding contract with a minor. I know he isnt family but I never do business with family or friends, it does nothing except ruin relationships. I am not sure how close you are with this kid and since you dont seem to mind if you get screwed over then go for it.

[Hardwyre]

If he's got a partial down on it, then what I'd do is help me through the loan process. I can't imagine him needing a huge loan for the remainder, so if you're feeling generous, you could help walk him through the process for a personal loan. You get your money without having to deal with the headaches associated with him defaulting on you. And then he learns a bit of what is involved in the loan process and also won't feel so free to miss a payment with the bank. I signed for a loan for family on a fucking Kia and ended up having to pay over $6000 to keep from having the dealership take me to court after this relative would miss payments 3-6 months at a time.

[hitch]

The kid is 17, mom said she would sign the note. I don't know any bank that will loan money on an old car unless it was a collectable. Plus, he has a one week work history.

[datzenmike]

Let him work for a while, a month or two. Tell him to save up if he wants it and if you haven't sold it in that time he can buy it from you. This will allow him to work toward it yet warn him there is a chance it will be gone. If really interested he will work towards ownership but if he can't save for it, then how is he going to afford to keep it on the road?

Anything worth having is worth working for. Anything worth working for is worth respect.

[exit64]

Make sure you go over all the hidden expenses that goes along with owning a car. At 17, insurance is going to be steep and he should carry full coverage until the car is paid off so that you get your dough should he happen to rear end his buddy in a Honduh screwing around in the parking lot. You got gas and maintenance and all the other crap that goes wrong on a regular basis with older cars. What he will gain is a bunch of mechanical know-how that he will use the rest of his life. My TR-4A made me the mechanic that I am today. I can fix anything with a 1/2" wrench, a screwdriver and some wire. Although that wagon is never going to die so he most likely won't learn squat.

Do your part too and show him how to check the fluids, air pressure and make him change a tire with some supervision one time. Mold him into a responsible Ratsun guy.

In these situations, I usually just trust my gut feeling and go with that. Just the fact that he actually has the gumption to get off his ass and get a job says a lot about his drive. I have only gotten burned once on a car deal and it was because I got lied to about the insurance bit. Luckily my name was off the ownership of the car with the DMV. Always fill out the change of ownership section and file it ASAP. Fucking strippers! :P

[metalmonkey47]

Let him work for a while, a month or two. Tell him to save up if he wants it and if you haven't sold it in that time he can buy it from you. This will allow him to work toward it yet warn him there is a chance it will be gone. If really interested he will work towards ownership but if he can't save for it, then how is he going to afford to keep it on the road?

Anything worth having is worth working for. Anything worth working for is worth respect.

 

I agree with Mike here. If he REALLY wants the car, saving up a little money on top shouldn't be a problem.

 

With that said, if you trust the kid, then I suppose it's worth it. Kids these days don't get those opportunities every day. It gives them the chance to work towards a goal and build confidence.

 

 

You could always put a lean on the title until it's payed off.

[yellowdatsun]

If you do it, you can have yourself listed as a lien holder on the title. So he has an incentive to pay it off. If he doesn't, he can't ever sell the car unless the lien holder is removed.

[izzo]

I think the asking price is a bit high on this car.

 

Id sell it to him for 1300a and just be done with it. You have had tire kickers and flakes look at it. Imo if it was a good deal at the 2600asking asking price, it would be sold already. But that's just my opinion.

 

Good luck hitch.

[H5WAGON]

You said he has enough to put half down, whats the asking price?

 

Take the half down, cut him a deal on the car where he only needs to make no more than 3 or 4 payments to pay off.

 

He will have to pay insurance and all the other fun stuff of owning a car.....+1...if you help him learn a few basics, if he needs it, to keep it running.:)

 

 

 

EDIT: What izzo said!

[Dirk Diggler]

Like Dennis said, be careful with a contract. You can in fact legally enter into a contract with a minor, however the terms of a contract may or may not be enforceable depending on the age of the minor at signing, the age of the minor at present, and the type of contract. If his mom signs it make sure you sign the car over to her, not him, as she will be stated in the contract.