Buying with Outstanding loan on tractor?

[MichKubota]

I am looking at buying a used Kubota but not sure if this owner has outstanding loan on tractor.

What if I buy tractor and he doesn't pay off loan? Can the tractor be repossessed from me?

How do you know if someone you are buying tractor from has a loan on tractor?

Is this an issue with buying equipment from individual?

 

[blueriver]

I am looking at buying a used Kubota but not sure if this owner has outstanding loan on tractor.

What if I buy tractor and he doesn't pay off loan? Can the tractor be repossessed from me?

How do you know if someone you are buying tractor from has a loan on tractor?

Is this an issue with buying equipment from individual?

This is an issue. Find the website address for your states UCC filings. In my business I have to search those, its free, in some states, once you determine the website address, it will list the persons name and all claims against any and all equipment that any financial institution has a lien, mortgage or encumbrance on ... if there is a lien, make your paymant in the form of Check with the sellers name as well as the financial Institution.

The seller may be able to sell for less than he owes IF THE FINANCIAL INSTITUTION AGREES.

 

[dphilljr]

I am looking at buying a used Kubota but not sure if this owner has outstanding loan on tractor.

What if I buy tractor and he doesn't pay off loan? Can the tractor be repossessed from me?

How do you know if someone you are buying tractor from has a loan on tractor?

Is this an issue with buying equipment from individual?

Be sure to get a bill of sale. Search the forums there are a few samples to go by. Good luck with your purchase Bob.

Dan

 

[MessickFarmEqu]

Yes, it can be repo'ed from you.

 

[kawman14733]

if it aint pd for, the bank has all rights to it, no matter who has it, they will take it if not being paid for.beware only buy if owner has a lein release good luck

 

[LBrown59]

I am looking at buying a used Kubota but not sure if this owner has outstanding loan on tractor.
1*What if I buy tractor and he doesn't pay off loan? Can the tractor be repossessed from me?
How do you know if someone you are buying tractor from has a loan on tractor?
2*Is this an issue with buying equipment from individual?

This is an issue. Find the website address for your states UCC filings. In my business I have to search those, its free, in some states, once you determine the website address, it will list the persons name and all claims against any and all equipment that any financial institution has a lien, mortgage or encumbrance on ...
3* if there is a lien, make your paymant in the form of Check with the sellers name as well as the financial Institution.
4*The seller may be able to sell for less than he owes IF THE FINANCIAL INSTITUTION AGREES.

1*Yes
2*It can be
3*Also compare the lien amount with the banks loan balance to be sure they match.
4*Don't hurt to ask.

 

[blueriver]

1*Yes
2*It can be
3*Also compare the lien amount with the banks loan balance to be sure they match.
4*Don't hurt to ask.

3* ... LB I can not recall a UCC showing the $ amount owed ... Direct contact with the insitution needs to be made.
4* ... LB you would be surprised how many times (in my trade) That I have asked on behalf of my seller ... "What will you Take" AND the discount is sometimes amazing!!

 

[bp fick]

With electronic bill paying these days, one can pay off Kubota in milliseconds.

I've bought cars and many other things, that required careful procedures to insure that lien is paid off, but such sales/purchases are made thousands of times a day.

 

[RickB]

We have a repo tractor sitting on our lot right now. It was purchased in good faith in a private sale but the seller still owed on it. The financing institution found it and repo'ed it. The buyer is out every dime he paid for the tractor, plus the considerable investment he made on accessories and repairs made after his purchase.

 

[MFRED]

Find out if there is money owed, make your check out to the finance company for the balance owed & mail directly to them. Certified Mail, it's amazing how stuff still gets lost. If there is a balance due to the owner, make them out a seperate check for thier "profit".

A UCC check will let you know a whole bunch. Find the lending institution & call them if you can. You would be amazed what information they will give up if it means they're going to get paid.

The way I understand it, if you buy a piece that is financed, and the seller doesn't pay it off, it becomes stolen property. Any bill of sale or agreement, doesn't mean squat. Remember, it's not really "your tractor" until the last payment is made. The finance company still own the other part.