Buying used tractor that was financed

[LBrown59]

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

I don't know how much legal protection it would give you if CNH, Kubota, Deere or whoever wants their tractor back.

Dave.

None:The lender is entitled to their money no matter what the seller says signs or does.

 

[Bird]

You know there's a lot of good information in this thread about how it should be done. But I'll admit to having it done it differently. When I sold my B2710, the buyer showed up one afternoon, and when I told him I'd have to have cash, he said he'd come back in the morning. Now I didn't ask for a deposit, but he insisted on giving me a $200 deposit to hold the tractor until the next day. I offered to go in the house and make out a receipt but he said that wasn't necessary. So he showed up the next day with the cash. He never asked if the tractor was financed or whether there was a lien on it, so I didn't mention it either. Well, it was still financed with Kubota Credit. So when he left, I immediately called for the payoff amount, wrote out a check, went to the bank to deposit the cash, and to the post office to mail the payoff.

Yes, he should have asked, and I guess some would say I should have told him without him asking. If I had not immediately paid it off, he and I could have both been in trouble. but actually he (the buyer) was the one running a risk, since I was getting cash and knew I was going to promptly pay off the note. Incidentally, I also offered to make out a bill of sale and he, again, said that wasn't necessary; that he didn't need it.

Certainly not the way I'd recommend things be done if you're the buyer.

 

[LBrown59]

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

Never take the sellers word for it and always check the court house records.

 

[LBrown59]

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?
Dave.

Court house records.

 

[Pops15]

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

That might be the case in other states as well. Louisiana hasn't adopted the UCC (Uniform Commercial Code) that the blueriver mentioned either.

 

[chamjoe]

Court house records.

I don't think they are recorded, maybe it depends on the state. Even if they are you would have to know what county it was purchased in or the county the guy lives in order to do a search.

 

[chamjoe]

Hi folks-

If you buy a used tractor from a private party who still owes a lot on it, how do ensure that he's going to pay off the loan? I've heard that if he doesn't, you the new owner owe the debt even though you wrote him a check.... is that so?

JG

To answer your question, you would not be responsible financially for the debt but they could take the tractor. In no way am I condoning this but, this opens the question, how would they find you? I have a feeling this happens more than we know. Do dealers check the S/N's when you bring it in for repairs? Is there some database of delinquent equipment?