Cat_Driver
Elite Member
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You can't sell it without a title. You don't have a title, till you pay it off. Pretty simple
Selling tractor : do I have to tell Kubota Credit ?
- Thread starter ohbehave
- Start date
The Fred
Veteran Member
https://tnbear.tn.gov/UCC/Ecommerce/UCCSearch.aspx
In Kentucky the UCC filings are NOT available online, one must make a written request for them.
A wise buyer would search for UCC filings before any second hand purchase, unless they tape over the VIN number like I do.
Fred
In Kentucky the UCC filings are NOT available online, one must make a written request for them.
A wise buyer would search for UCC filings before any second hand purchase, unless they tape over the VIN number like I do.
Fred
Tx Jim
New Member
Tractors don't have a "title" at least not in Texas.
Inspector507
Super Member
Poopdeck Pappy
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I haven't read all the banter here, but the answer is really simple:
A tractor loan from Kubota or other tractor/equipment finance company is usually a SECURED loan. This means that the creditor has a lien against the tractor. I.e., the tractor is collateral for the loan. If the loan isn't paid, they can repossess the tractor (i.e., the collateral).
It's just like a car loan, the only difference being that cars have certificates of title which show whether there is a lien against it. So on a car, it's easy to tell if there is a lien.
These types of loans are completely different than a credit card, which is an UNSECURED loan. This means the creditor has no lien against whatever was bought, has no collateral for the loan, and has to come chase you around to get paid if you stiff them. THAT IS WHY credit cards have outrageous interest rates compared to the low rates (or even 0%) we pay on tractor loans.
FOLKS, IF YOU BUY A USED TRACTOR, ALWAYS GET THE SELLER TO SIGN A BILL OF SALE THAT, AT A MINIMUM, REPRESENTS AND WARRANTS TO YOU THAT THE SELLER IS THE LEGAL OWNER OF THE PROPERTY FREE AND CLEAR OF ALL LIENS, SECURITY INTERESTS AND OTHER ENCUMBRANCES.
A tractor loan from Kubota or other tractor/equipment finance company is usually a SECURED loan. This means that the creditor has a lien against the tractor. I.e., the tractor is collateral for the loan. If the loan isn't paid, they can repossess the tractor (i.e., the collateral).
It's just like a car loan, the only difference being that cars have certificates of title which show whether there is a lien against it. So on a car, it's easy to tell if there is a lien.
These types of loans are completely different than a credit card, which is an UNSECURED loan. This means the creditor has no lien against whatever was bought, has no collateral for the loan, and has to come chase you around to get paid if you stiff them. THAT IS WHY credit cards have outrageous interest rates compared to the low rates (or even 0%) we pay on tractor loans.
FOLKS, IF YOU BUY A USED TRACTOR, ALWAYS GET THE SELLER TO SIGN A BILL OF SALE THAT, AT A MINIMUM, REPRESENTS AND WARRANTS TO YOU THAT THE SELLER IS THE LEGAL OWNER OF THE PROPERTY FREE AND CLEAR OF ALL LIENS, SECURITY INTERESTS AND OTHER ENCUMBRANCES.
Bird
Epic Contributor
This thread, and the previous one on this topic, seem so silly. All you have to do is read the contract, or ask a lawyer, and of course the difference between unsecured (credit card) and secured loans has been adequately explained by a number of people here. Yes, it's "wrong" to sell a car or tractor without paying it off, but it can be done without any evil intent or without anyone losing money, but of course that doesn't make it "right" or legal.
I suppose a smart buyer would check to see if there's an outstanding loan on a car or tractor before buying from an individual. But when I sold my last Kubota, it was still financed with Kubota. The buyer never asked or I would have told him, and we'd have had to do more paperwork, take more time, etc. But since he didn't ask, I didn't mention it. I got cash, took that cash to the bank the next morning, and sent a check that day to Kubota to pay it off. So I reckon I was illegal for about 24 hours. Personally, there's just no way I'd have gone any longer without paying it off because you never know what might happen in the future.
I suppose a smart buyer would check to see if there's an outstanding loan on a car or tractor before buying from an individual. But when I sold my last Kubota, it was still financed with Kubota. The buyer never asked or I would have told him, and we'd have had to do more paperwork, take more time, etc. But since he didn't ask, I didn't mention it. I got cash, took that cash to the bank the next morning, and sent a check that day to Kubota to pay it off. So I reckon I was illegal for about 24 hours. Personally, there's just no way I'd have gone any longer without paying it off because you never know what might happen in the future.
You just gave the perfect example of why this is wrong. Common sense wise and legally. Say you got hit that night by a beer truck and didn't make it to the bank to pay off the tractor. The new owner would have his tractor confiscated by the bank. What if you lost that money gambling? What if you had gotten robbed and didn't pay off the tractor? You would have told him if he asked?
Last edited by a moderator:
Bird
Epic Contributor
I never said it was "right", but if I'd gotten hit by a truck, I'm sure my wife would have paid all the outstanding bills.:laughing: And yes, I understand that it could have been a tornado or fire that killed both of us, destroyed the house, and the cash. Or maybe a nuclear bomb that wiped out the nation. Everyone, including you, take some chances every day. Maybe you'll make it through the day, and maybe you won't. So you decide what you think the odds are and act accordingly. What if I'd lost the money gambling, or if I'd been robbed? Well, the odds of that happening were less than the odds of you being the robber.:laughing:
Cpjlube
Silver Member
I think some posters were a bit harsh on the OP. I don't think he did his research before he posted. The lack of a title for tractors could make it seem like there isn't a lien on the equipment.
The first replies were strongly worded and emphasized the need to pay it off. Then he was called a deadbeat. That's a bit much for a silly question. If he had already sold the machine and told us how he was not settling the loan after the sale, then he would deserve that description.
As with most forums, there are always silly questions. Because we all have different levels of understanding, new guys ask questions that seem silly to others. At no point did I get the impression the OP was trying to screw Kubota or the buyer.
Just my opinion. Have to go start another thread on welding 1/2 inch plate with a 110 volt welder.........
The first replies were strongly worded and emphasized the need to pay it off. Then he was called a deadbeat. That's a bit much for a silly question. If he had already sold the machine and told us how he was not settling the loan after the sale, then he would deserve that description.
As with most forums, there are always silly questions. Because we all have different levels of understanding, new guys ask questions that seem silly to others. At no point did I get the impression the OP was trying to screw Kubota or the buyer.
Just my opinion. Have to go start another thread on welding 1/2 inch plate with a 110 volt welder.........