Loaning $$ for a car....

[Onita]

I'm loaning money to someone for a car. What do I need to do to protect my interests?

I will have a Promissory Note as well as putting a lien on the title. Do I need to file the Promissory note somewhere? Anything else I need? Anyone ever done this before?

 

[bryanW1995]

What state? There is a generic "law" contract in texas, I can mail you one if you're here. If you're in another state, a simple loan agreement plus having you listed as the leinholder on the title should be sufficient. Bear in mind, however, that some states give the title to the buyer instead of the leinholder. Even if you possess the title, if this person were determined to sell it later without your permission he/she could likely get a duplicate title from the state to do it.

 

[Onita]

Guess the state would have helped. Its in Ohio. Thanks for the info

 

[Doppel]

Good luck.

 

[halik]

I'm loaning money to someone for a car. What do I need to do to protect my interests?

I will have a Promissory Note as well as putting a lien on the title. Do I need to file the Promissory note somewhere? Anything else I need? Anyone ever done this before?

With a lien on the title, you should be good. Just make sure you have the repossession clause spelled out in that contract.

 

[Capt Caveman]

I would also add the minimum/required insurance needed by the buyer to have on the vehicle in the contract.

 

[Bartman39]

I'm loaning money to someone for a car. What do I need to do to protect my interests?

I will have a Promissory Note as well as putting a lien on the title. Do I need to file the Promissory note somewhere? Anything else I need? Anyone ever done this before?

Must be a friend...? If so good way to lose one... Couple of words for ya... Dont do it bad idea... Been there done that...!:thumbsdown:

 

[mi xiao]

I'm loaning money to someone for a car. What do I need to do to protect my interests?

not doing it is the best way.

if you are concerned, it is already a bad idea.

 

[MrWizzard]

Never done it myself, but I know enough from watching people do it.

DON'T DO IT! This rarely works out without someone having bad feelings.

 

[Onita]

Hah, I knew I would get a lot of don't do it responses. I'm not concerned, but I find its always best to protect my interests as much as I can in any circumstance. Thanks for all the help thus far 🙂

 

[BurnItDwn]

Why are they not going to a bank to get the loan? Is it because their credit is trashed? Is their credit trashed because they don't pay back loans? Why do you think this is a good idea?

 

[Kirby]

Do they have any kids you could use for collateral?

 

[DivideBYZero]

If no one in the world apart from you will lend them money, can it really be possible that everyone else is wrong?

 

[Doppel]

Hah, I knew I would get a lot of don't do it responses. I'm not concerned, but I find its always best to protect my interests as much as I can in any circumstance. Thanks for all the help thus far 🙂

You are concerned, hence the thread.

 

[EightySix Four]

If no one in the world apart from you will lend them money, can it really be possible that everyone else is wrong?

I kind of disagree with you, there are situations where him doing this makes sense. If he is loaning it to a nephew or something with literally zero credit, if it's a personal friend who had a very specific bad break on their credit, etc.

You are concerned, hence the thread.

Covering your bases doesn't necessarily mean you are concerned, banks still write up contracts with their multi-million dollar clients for a reason 😛

 

[KentState]

Only lend the money if you can afford to lose it. Even if they are gainfully employed, that could change without warning and it's hard to squeeze money out of someone that doesn't have it. All a contract does is give a legal right to collect the money. Being able to collect the money is a different story.

 

[Chrono]

Don't do it. Have your friend borrow from the bank instead. If they can't get a proper loan with a good rate, then maybe have your friend sign up with a family member for co-signed loan.

 

[Doppel]

I kind of disagree with you, there are situations where him doing this makes sense. If he is loaning it to a nephew or something with literally zero credit, if it's a personal friend who had a very specific bad break on their credit, etc.



Covering your bases doesn't necessarily mean you are concerned, banks still write up contracts with their multi-million dollar clients for a reason 😛

Because they are concerned 🙂

 

[ShawnD1]

I'm loaning money to someone for a car. What do I need to do to protect my interests?

The fact that you feel the need to protect your interests shows that you should not do this.
Also, the possibility that they can't get a loan under their own name is a huge jesus red flag.

Do they have any kids you could use for collateral?

This poses the problem raised by everyone else. If you take his kid (or house) away, you just lost a friend. So it's either you lost money or you take the collateral and lose a friend. It's a no-win situation.



That doesn't mean you can't help a friend out. If someone wants $5,000 loan for a car, they can go fuck themselves. If they want $500, that's a lot more reasonable. Help a brother out.