Selling tractor : do I have to tell Kubota Credit ?

[ohbehave]

I'm moving to a place with very little land....so, selling the Kubota.

I'm paying it off with 0% interest....and owe on it for two more years.

Is there any reason to pay off the debt? Primarily, I'm asking if I am contractually obligated to pay it off once it sells.

I'm no fan of carrying debt, but at 0%, I'd just as soon hold the money for emergencies while paying it down slowly.

Thanks

 

[Gary Fowler]

Legally you have to pay it off if you sell it.
I would be surprised if the buyer pays you for it with a lien on it, I sure wouldn't trust you to pay it off. The credit company could repossess it and leave me in the cold with you with my money gone and no tractor.

Your statement that you would like to hold the money for emergency raises no doubt in my mind that if you needed money, you would forgo paying your tractor note. Not very honest dealing IMO.

 

[nybirdman]

Boy ,I think that could get you in trouble with the law.What are you going to tell the purchaser?It would make life a lot simpler if you pay off when sold.Would you purchase anything "knowing"there was a loan against it?

 

[coobie]

Legally you have to pay it off if you sell it.
I would be surprised if the buyer pays you for it with a lien on it, I sure wouldn't trust you to pay it off. The credit company could repossess it and leave me in the cold with you with my money gone and no tractor.

Your statement that you would like to hold the money for emergency raises no doubt in my mind that if you needed money, you would forgo paying your tractor note. Not very honest dealing IMO.

I agree.If the seller is doing his or hers homework they will have a dealer check(serial number) to see if there is a lien on the tractor.Why would you use someones elses money?Dishonest IMHO.

 

[ohbehave]

Ok... well, I assumed that it may have been like credit card debt. That is, no collateral is implied.

So, I'm assuming that the tractor is the collateral for the loan.

There is an excellent argument for holding debt IF the interest rate is very low. There are better, more productive uses for the money. This isn't exotic financial advice... pretty standard stuff.

I'm not sure how any of this would be dishonest. He gives me money and I give him a tractor at a bargain. The debt would be mine. However, if this constitutes a break in my contract with Kubota Credit, then I'd have no problem paying it off.

 

[chevy]

You need to read your contract, but my guess is that yes you will need to pay it off.
The tractor is collateral on the loan. Why would anyone buy the tractor from you, with you still owning money on it?
If you do not continue to make the payments, the buyer loses their tractor.

 

[George2615]

Re-check your contract. Since Kubota is financing it there may be a payoff clause if you sell. Or call them directly. I agree with Chevy that if you sell and pocket the money then stop payment Kubota will keep an eye out for it to show up at a dealer for service and confiscate it from the new buyer. If you stop payment Kubota will sue you for the balance. If the new buyer loses the tractor he will sue you. I know 0% sounds good and you probably would continue to make payments but what would happen if circumstances changed later and you couldn't make the payments. Best to pay it off when you sell.

 

[ohbehave]

Thanks

Well, now that I have thought about it with the above advice... of course I'll just pay it off. (I could pay it off now without selling, but why?...at 0%)

It just occurred to me that there is no title to these things, right? If I bought a fridge with a credit card, I do not have to pay it off if I sell the fridge. Was thinking that it worked the same with the tractor.

If it were a car... with all of the licensing and titles.... yes, I understand that it can't have a lien on it.

 

[grm61]

This guy evidently thinks it OK to do as he **** well pleases....maybe he could give you some pointers http://www.tractorbynet.com/forums/kubota-buying-pricing/314859-two-2-less-payments-kubota.html

 

[Citydude]

When i bought my used tractor my banker ran the serial numbers on some data bank looking for issues like this. Buyers beware.....sellers, play by the rules.........