Owner finance on a truck

Start with a promissory note. Have the agreement notarized, set the terms for payback, set terms for late payments and interest.

 

Make sure you let your insurance carrier know what your doing. You don't want to give them a reason (legit or not) not to pay a claim.

 

Another good thread....

 

Check with the original finance company. They are still the lein holders.

 

Also no matter how agreement is written if you let him register it in his name without listing your self on the title as lien holder, you cannot repo it should this friend default the note. You must take him to court and get judgement. That doesn't guarantee payment. In some states it is against the law to insure something that is not in your name.

 

I would be careful doing this with a friend.

In the end, your friendship may be over, and you may have a heap of legal issues. The courts are filled with people that tried to help a friend with a vehicle.

I hope that if you do it, it works out for you. Good luck.

 

Ive seen both sides to it. Guy pays the truck , gets the title and everyones happy.... Ive also seen good friends come to blows and have law enforcement involved.