Selling tractor : do I have to tell Kubota Credit ?

[MinnesotaEric]

Good for you.If your are debt free why ask such a question?Pay the tractor off,discussion over.

:drink:

 

[MinnesotaEric]

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.

Your credit card is unsecured credit. because it is unsecured, you pay a higher finance charge on any unpaid carry-over. The 0% interest on the Kubota is a secured loan. The tractor is the security deposit.

Credit card: unsecured credit.
0% loan: secured credit.

They are not one and the same.

 

[k0ua]

I am going to come down on the side of the original poster.. I just think he didn't think it through that's all. I don't think he had any mal intent. He never thought of not paying off the loan, he just thought, "hey it is 0 percent, why not use that money and keep making payments instead of using my ready cash".. Good financial sense but very very poor legal sense.

 

[coobie]

My point is at the end of the day when a person lays his or her head down for the night did you do the correct thing?If the answer is no than it,s time to do a little reflecting or a self check.We all know what is right and what is wrong,Period.

 

[MinnesotaEric]

I am going to come down on the side of the original poster.. I just think he didn't think it through that's all. I don't think he had any mal intent. He never thought of not paying off the loan, he just thought, "hey it is 0 percent, why not use that money and keep making payments instead of using my ready cash".. Good financial sense but very very poor legal sense.

Mercy once, but then he doubled down.

 

[Hinomotoman]

If you bought the tractor on a credit card you wouldn't be obligated to pay it off. That's why they have higher interest, to cover defaults.

Eugene

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!

 

[Threepoint]

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.

Lordy, the OP posted his question last night and there are already four pages in this thread! Lot's of folks piling on like bluefish with chum in the water, but unless I read too quickly, nobody's explained to the OP how there can in fact be a recorded lien on the tractor, even though it is untitled and unregistered. Seems to me that is why he has been pushing back so hard, not because he's trying to steal a march on anyone. There is a UCC-1 financing statement on file in the local public records under his name. He signed one at the time of sale, and Kubota recorded it. It is the way the creditor gives notice of its property rights. This is different from the purchase of a fridge with a consumer credit card, where it would be unusual for a UCC-1 to ever be filed.

So, yes, there is a lien on the tractor, it is of public record and therefore enforceable against anyone who buys the tractor from the OP. The purchaser is on constructive notice of the lien, even if he/she does not check the public records. There is also virtually certain to be a due-on-sale clause in the Kubota Credit loan agreement.

 

[Tx Jim]

Yep UCC-1 were filled out with serial numbers if applicable and filed with state way back in the 60'-80's when I sold new/used tractors & equipment. Selling farm equipment with a chattel mortgage filed on it is classified as selling mortgaged property which I think is a felony if caught.

 

[CobyRupert]

I am going to come down on the side of the original poster.. I just think he didn't think it through that's all. I don't think he had any mal intent. He never thought of not paying off the loan, he just thought, "hey it is 0 percent, why not use that money and keep making payments instead of using my ready cash".. Good financial sense but very very poor legal sense.

I agree. Seems like he's getting beat up a lot for asking an innocent question that really boils down to a secured debt (selling tractor) versus an unsecured debt (selling fridge bought with credit card). Jeeze , a person doesn't know what they don't know! Don't get mad at them.
We're here to provide OP's with answers, commiserate, and sometimes joke.
Don't get so bent out of shape, or downright nasty (e.g. namecalling: "dishonest").
If every OP knew everything, they'd be no questions to ask and no need for this website.

 

[RollingsFarms]

You have other options then just selling it yourself. You can sell it on consignment through a Kubota dealership. You could also trade in the tractor and buy something smaller but I'm sure you'd have a lot of money left over from the difference. The dealer you trade with would then pay off the current loan. Not all dealers will do this but most will. I have a small loan against my tractor but could easily trade it back in to the same dealer and buy something else if I wanted to from them.