Selling tractor : do I have to tell Kubota Credit ?

[ohbehave]

Whenever we get a thread on buying a used tractor, or selling a used tractor that was financed through Kubota the solid advice is this. Caveat Emptor. Buyer Beware. Smart buyers would never just hand over the cash without first asking for the original loan paperwork, on which is the serial number and loan number. A smart buyer goes completely around the seller and calls Kubota directly. No monkey business would ever occur.


In the end, the true seller of a used, financed tractor, in such an instance, is Kubota Credit. They are the true owner for that matter, until their interest is satisfied. The buyer should drop a dime, speak directly with Kubota and hash out the details of the matter. That's how is should be done and IS done every day.

A wise buyer would never be a party to what the OP described, even theoretically, in the opening post. Just wouldn't happen.

Yes. It seems obvious now. But sometimes what is obvious or common sense gets confronted with something that was unexpected. Lacking certainty, I asked. Not that you are obliged to read this entire thread, I gave some examples (refridgerator bought on a credit card) in which the buyer does not seek nor cares about the sellers credit situation.

The best lesson that I have learned here is that if I ever BUY a tractor from an individual, I will seek information on a possible lien!

 

[murphy1244]

Then my advice would be never buy a used Tractor as you can't trust anybody anymore.

 

[coobie]

LOLs you got that right Coobie!

Thanks murph,the part that really scares me I paid 4 years of college tuition for my son to attend the university Tenn. in Knoxville where this person is located.LOL

 

[murphy1244]

Thanks murph,the part that really scares me I paid 4 years of college tuition for my son to go to the university Tenn. in Knoxville where this person is located.LOL

Oh my! Can you get your money back?? or was it a loan?:laughing:

 

[coobie]

Oh my! Can you get your money back?? or was it a loan?:laughing:

LOL,paid in full.

 

[firemailwv]

I am saying this without having fully read the purchase contract that I signed when I financed my tractor.

But, if I were to go purchase a $3000 john deere lawn tractor at Lowes and I put that mower on my Lowes credit card. If I sell that tractor, would I have to pay off the credit card with the proceeds from the sell? No, I don't think so. I'm still on the hook for the purchase price to Lowes. I guess maybe the difference is that my Lowes credit card is a line of credit of which I do not have with KCC. The loan through KCC is an installment loan on a single piece of equipment. That does make a difference.

I think maybe some of the responses were a little too harsh and implied that the OP was trying to deceive someone. I don't think he was. I think he was asking a legitimate question on a weekend without calling KCC to get the real deal.

I hope I'm on the right track with my analysis.

 

[firemailwv]

and I would like to add, his question actually makes good financial sense if you consider the question and not the legal requirements. He would have the balance of the loan in cash reserve with paying 0% interest on the money. Nothing wrong with trying to make good financial decisions for your family, as long you work within the law...

 

[murphy1244]

You make a contract with the Credit card company about card debt and you also made a contract with Kubota on Tractor debt. Buy the Tractor with the credit card and sell them all you want. Easy Peasy

 

[paulfun9]

Alright, I asked the question and offered reasons why someone like me would wonder about this prospect.

I see that merely asking has raised some hackles. I figured it would be easier to ask here than to read fine print on a multipage contract! That's it.

Selling a tractor that has been owned for 2 years is a money losing proposition through and through... this is hardly a "rip off!" attempt or a con job.

It's a question.

I would offer that not-asking-a-question and giving it a go, would been the ethical "issue".

Preach if it's your thing, but I am seeking facts and thank those that have offered them.

Fact is easy.

A credit card purchase does not require a separate contract for the fridge needenig to be signed that requires the use of the unique serial number that is affixed to it so in that case selling it would not be a problem and the credit company would not come directly after it.

With the tractor the contract is a one time offer of credit based soley on the single purchase and the value of the item with the serial number being recorded and you have entered into a agreement to hold that property with the first lean of favor being the lender. For you to honor this they must be given notice of your intent to sell and you must pay them at or before time of sale. If you don't want to read the contract you should just pick up the phone and call them to see what they have to say. But to sell the tractor with a lien against it is criminal behavior and if something were to happen that you couldn't make the payments on the loan not only would the person who buys it from you potentially loose their money but you would certainly end up with a criminal record and a civil law suit against you at best!

If you read the credit agreement you will see that it clearly states that you agreed to { not dispose of or transfer any interest in the purchased property) This is the exact statement that will get you into trouble. Not reading or misunderstanding the contract wont hold water in court no matter how good the attorney is. The only difference the attorney would make if things went wrong would be how many days in jail or probation while you awaited the civil suit case.

Best advice here is to call the lender and ask how they want you to go about selling it and do as they say. It protects both you and the next owner and I am sure if you were looking to buy a new machine it would be how you would want me to protect both of us in the transaction.

Good luck with your sale!

 

[coobie]

and I would like to add, his question actually makes good financial sense if you consider the question and not the legal requirements. He would have the balance of the loan in cash reserve with paying 0% interest on the money. Nothing wrong with trying to make good financial decisions for your family, as long you work within the law...

Yep,you hit the nail on the head(as long as you work within the law).