Selling tractor : do I have to tell Kubota Credit ?

[k0ua]

James, I wonder how many people compare the serial numbers on the paperwork, titles, receipts, etc. with the serial numbers actually on the tractor, car, or pickup when they buy one. I received an interesting complaint once when I was commander of the Vehicle Services Division (auto pound, wrecker company supervision, and our own fleet). The guy's complaint was that his pickup was stolen, and reported stolen, the thief had been arrested for something else, the truck impounded, then the truck released back to the thief when he got out of jail.

As it turned out . . . when the truck was reported stolen, the owner reported the VIN that was on his title, so that's what went into the computer files of stolen vehicles. But no one knew there was one digit different on the actual vehicle. So when the thief was arrested in the act of stealing material from a construction site and the truck was impounded, my clerk enter the VIN that was actually on the truck and got no report of it being stolen. The thief bonded out of jail, went to the pound, and claimed "his" truck. Now it's been so long ago that I've forgotten how the original (legal) owner found out that his truck had been impounded and released back to the thief, but when I got the complaint and went to investigate . . . well, the truck was back in the pound and the thief in jail again because he had refueled the truck, drove off without paying, and got arrested again.:laughing: So the legal owner got his truck back, and got a corrected title.:laughing:

I'm sure dealers don't often make a mistake in typing up VIN or serial numbers, but I sure check mine personally.:laughing:

Good advice!. I can't remember the details of the friends truck, and how they figured out it was stolen, but you know it had to be registered for many years Or I guess so.

 

[ultrarunner]

When I bought my last used tractor I asked to see the bill of sale from the previous owner.

The seller was a construction business and pulled the folder out and made a copy for me.

My bill of sale was typed on company letter head with a copy of the seller's contractor's picture license... I paid by certified bank check...

In other words I had a paper trail...

By the way my seller offered to deliver when I told him I had only a 1/2 ton pickup... he had a Dodge 1 ton with duals... and had to put it in low to get up my road.

 

[Sysop]

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.

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...

I agree, I've read through everything (up to this point so far) and I don't think he was planning on shafting KCC, simply setting the money aside to collect interest while he made payments on the 0% loan. It is sound financial advice in many situations, but in this instance with the contract he signed with KCC he can not do it without being in breach of that agreement.

 

[ljohnson778]

No one has gone after his character ... Rather advising anyone buying or selling a little advise ... Sure would hate to see someone buy or sell with a lien on the equipment

Come on... The term "deadbeat" among others, has been thrown around. He had questions, he was treated like crap. I believe it was a legitimate question, he just didn't understand the rules... Hence why he asked the question! TBN has turned from a group of like minded tractor enthusiasts into a panel of character judges.

 

[Threepoint]

I agree, I've read through everything (up to this point so far) and I don't think he was planning on shafting KCC, simply setting the money aside to collect interest while he made payments on the 0% loan. It is sound financial advice in many situations, but in this instance with the contract he signed with KCC he can not do it without being in breach of that agreement.

It's actually even more than just putting the money aside to collect interest. I suppose the OP may have planned on doing that, but given the nominal rates on time deposits in today's market, interest rate arbitrage would not be much of a strategy. The real benefit would be in the fact that "0% Financing" from Kubota, JD, Kioti or any other tractor manufacturer is 0% in name only. As I and several others have pointed out, the OP effectively paid the interest on his loan up front, at the time of purchase, by foregoing the $2000 (or whatever it was at the time) cash discount that was offered as the alternative. The $2000 difference in his purchase price was the cost of buying down the rate to zero. By selling the tractor before he's paid off the loan, he's lost the benefit that he's already paid for. So I understand why he was asking if he could keep the loan in place. He cannot do it because the tractor is KCC's collateral, and since the decision to sell is his alone, KCC is certainly entitled to the benefit of its bargain as well, which was to have a fully-secured loan, rather than be at risk with unsecured debt, which is what all credit card debt is except in the occasional situation when the card-issuing bank requires that a compensating balance be maintained in a deposit account.

 

[downslope]

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!

Doesn't even have to be a lien involved. The seller may not have 100% interest in the item. My friend ran into trouble with a sailboat he bought from a guy who was going thru a divorce and sold the boat thru a broker in a no-title state, GA I believe.

 

[jagyzf]

My thought was that this was entirely within the rules and presents NO risks to the buyer.

Is a tractor considered a motor vehicle? Is it some sort of deeded property? Or... is it more like a fridge or a mower that you bought with a credit card?

If I sold a mower, would anyone suggest that I have an ethical obligation to pay off the credit card (at least, the mower's portion of the debt)?

My question is a theoretical one. As I am selling off my stuff, it just occurred to me that the 0% tractor could be sold with me carrying that debt. I have never sold a big ticket item that, to my eyes, comes with no title and no deed.

Just as with a used refrigerator, I simply hand over the item, right? It's not like I'm going to do any paperwork on the sale of a fridge.

It's not the same with a tractor?

Anything you buy on a credit card, the credit card company goes after you, plain and simple. With a loan, the item being purchased is the collateral on the loan. If you stop paying, the loaner will go after not only you, but the item the loan is against, be it a car or a tractor. You are not making an apples to apples comparison.

It would seem you have gotten the answers you were looking for, but don't like the answers and now say people are preaching.

Really you should have known the terms, I say you should have known because you should read every contract you sign, and all of the fine print. While again, most places are straight up, many are not. People can get hit with interest down the road they didn't know about or have their rate jump. Really it is in you best interest to read it, and I have even put notes on them when buying a home, just for my own reference down the road. That was a part of the housing mess, people with adjustable rates they didn't understand or even know about.

Also, with any item sold, there should be paperwork, even if it's just a hand written paper that says item x is sold to John Doe for Y amount. I would never buy anything over about $10.00 without some proof of ownership.

While you may very well pay it off and their not be an issue, any loan of this type requires a payoff. This is due to the number of people who have done just this and not paid it off.