Buying used tractor that was financed

[AHNC]

Having just purchased a Kubota and using their money for a part of it, they filed a UC1, which essentially bars me legally from selling the product while money is still owed them. Check and see if there was a UC1 filed on his equipment. If there is, you want to notify the lein holder prior to moving forward so things go smoothly. Good luck!

 

[blueriver]

I go through this on boats all the time. Get paperwork from the lean holder then make out 2 certified checks. One to the bank and one to the individual. Say the tractor is $15,000 and he owes $14,000 the checks would be $14,000 to the bank and $1,000 to him or her.

Chris

Correction ... Tractors are not boats. Check the UCC filing and make the check payable to the seller and the lien holder. A boat is titled and a tractor is not ... get a letter of secured parties interest release ... you and the seller go to the lien holder on the UCC filing and get your paperwork.

Keep in mind, the seller may have more than one lien and may LIE to you ... if you don't check the public UCC in your State and county ... well you may be screwed ....

 

[Big Bri]

Correction ... Tractors are not boats. Check the UCC filing and make the check payable to the seller and the lien holder. A boat is titled and a tractor is not ... get a letter of secured parties interest release ... you and the seller go to the lien holder on the UCC filing and get your paperwork.

Keep in mind, the seller may have more than one lien and may LIE to you ... if you don't check the public UCC in your State and county ... well you may be screwed ....

in Louisiana. . . at least when we bought a boat it was not titled the boat trailer was but the boat was not.

 

[Robert_in_NY]

There is some good advice on here. I have never bought anything from someone that has had it financed at the time but I have sold a couple things I had financed. Both times the people just paid me the money and trusted me. The first time was with my motorcycle. I gave it up after my daughter was born and the guy buying it would stop in every now and then and give me 2-3k. Every time he gave me money I put it all onto the loan which is what I told him I would do. All he was doing was paying off my loan and when it was paid he owned the bike. I kept the bike in my barn too so it was a lot of trust on his part but he didn't ever seem to doubt me. The other was a Grand Cherokee I sold, again all I asked for was the pay off as I sold it to a friend of mine (and father to my niece and nephew). He wrote the check to me and I wrote one to the loan company. Lein release came to me and I gave it to him. Never had any issues but I have always been leary about entering any deal like this with someone I don't know or trust as if you give them the money and they take off without paying off the loan then your on the hook and having to go after the seller through the courts.

 

[jeffgreef]

thanks a lot.

guess you have to make sure you know that there IS a lienholder to begin with. Suppose the seller doesn't want you to know... how do you find out? Can you call the manufacturer with the serial number on the tractor and find out if it was financed?

 

[Robert_in_NY]

thanks a lot.

guess you have to make sure you know that there IS a lienholder to begin with. Suppose the seller doesn't want you to know... how do you find out? Can you call the manufacturer with the serial number on the tractor and find out if it was financed?

If the seller doesn't want you to know something like that why would you still want to buy a tractor from him? I would think that would raise a huge red flag.

 

[flusher]

thanks a lot.

guess you have to make sure you know that there IS a lienholder to begin with. Suppose the seller doesn't want you to know... how do you find out? Can you call the manufacturer with the serial number on the tractor and find out if it was financed?

When I buy a used tractor, I insist that the Seller sign a bill of sale stating that the tractor is free from all encumbrances.

View attachment 146248

Also be sure you get a look at his driver's license (picture ID) and write the number on the bill of sale.

 

[tallyho8]

If the seller doesn't want you to know something like that why would you still want to buy a tractor from him? I would think that would raise a huge red flag.

If the seller tells you there are no liens (and is lying) you wouldn't know, so it wouldn't raise a red flag.

 

[dave1949]

If the seller doesn't want you to know something like that why would you still want to buy a tractor from him? I would think that would raise a huge red flag.

That's a good point Robert, but as Donald Rumsfeld said, 'You don't know what you don't know'.

How would you determine there is or isn't a lien, just by asking the seller?

Flusher's bill of sale, and lic.# certainly is a good idea. I don't think it would stop the truly dishonest. I don't know how much legal protection it would give you if CNH, Kubota, Deere or whoever wants their tractor back.

Dave.

 

[Robert_in_NY]

If the seller tells you there are no liens (and is lying) you wouldn't know, so it wouldn't raise a red flag.

Sorry, I misread his post and for some reason I though he said something to the effect if the seller wouldn't tell you who was the lein holder