Best way to lease/finance a trailer I own

Discussion in 'Ask An Owner Operator' started by Boxcar, Dec 28, 2007.

  1. Boxcar

    Boxcar Light Load Member

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    I recently got out of being an owner operator. But I still own a dump trailer. I have a guy that is interested in purchasing it. Does anyone here know the best way to go about the transaction I'm basically going to finance it to him what is the best way so I have the least liability with the trailer. ie: he flops it over or blows the cylinder out its his to fix. I figure I might as well finance the deal and make the extra money on the interest..
     
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  3. MedicineMan

    MedicineMan Road Train Member

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    have a contract written to the effect that he is making payments and that he is wholely responsible for any and all repairs, maintenance etc. I would have something in there about if he becomes more than 30 days behind then you have the right to repossess the trailer with no monies to be returned to him and that at such time he would be responsible for any damage done to the trailer.
    Make sure the condition of the trailer is well documented before this and that he signs of on the condition report
     
  4. 7mouths2feed

    7mouths2feed "Family Man"

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    you should also insist on him putting total loss insurance on it with you being the lean holder. Perhaps include it in the payment so you know it is being paid.
     
  5. NightWind

    NightWind Road Train Member

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    If you have an existing lien on it then you need to check with your finance company before you decide to "be the bank." Your contract with them might not allow it. They might even finance it for him. Don't do the "let me assume your payments deal." That's asking for trouble.
    Personally I wouldn't finance it. Let him get it financed. If he can't then that's a warning sign right off the bat.
    However if you decide that you are going to be "the bank" then have a legal binding document drawn up between you and him, have it notarized. Make sure that what ever furnacing arrangements it meets your states lending regulations and the Federal Truth in Lending laws other wise he might get a free trailer.

    Set out a payment plan with interest and late charges. Be sure to put in the document who is responsible for recovery, attorney fees, and court cost. Have the trailer inspected by a reputable shop to document the condition of the trailer and take pictures, lots of them, especially the bed, hoist and tailgate. I'd ever take pictures of the brakes ,suspension, tires etc. Record the serial numbers of each tire and the trailer. Get a stamp kit at Harbor Freight and stamp on to several areas the serial number, make sure it's not on some thing that can be easily replaced or removed.

    Have him add you as lien holder and additional insured on the insurance. No insurance is going to pay more than the equipment is worth at fair market value. It wouldn't be a bad idea to have your own insurance on it and add that cost in to the price of the equipment.

    I have a payment spreadsheet but I don't know that I can upload it, you are welcome to it if they will allow it here.

     
  6. Boxcar

    Boxcar Light Load Member

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    The trailer is mine free and clear, I found a generic lease form online the I think I will use. The only thing I need to correct is that he takes possession of the trailer after the final payment is made.. I actually got this kid into business and hes been doing fairly well for his first year. (of course he never ran that hard for me)
     
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