Buying from Private Seller But Lender wants a Dealer Involved??

Discussion in 'Trucker Taxes and Truck Financing' started by Mullet_Head87, May 21, 2021.

  1. Mullet_Head87

    Mullet_Head87 Medium Load Member

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    Got Pre-approved for a Loan to Purchase a Peterbilt 579 w/Reefer from a Private seller. The lenders want the deal to go under a certified dealer...???....! WTF?? Thinking at this point to just go to a dealer and purchase a truck and finance through them. The rig im buying is the rig ive been driving for the past 2yrs...which is why i really want it. Boss is having us switch to an all O/O fleet and offered the truck/trailer to me. Anybody go through a similar situation like this?? My options are really limited cause its my 1st time buying....
     
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  3. Happily Retired

    Happily Retired Road Train Member

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    Find a different lender, they are clearly in cahoots with dealers. Sounds like you already know what you have, AND the work, find a different lender. A dealer and strange truck, you are starting at square 1 again. I like your situation much better and so will someone else in the business. I went with my personal bank and did fine. Maybe the bosses bank, they already know the situation.
     
  4. JoeyJunk

    JoeyJunk Road Train Member

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    Did you get the price down like everyone suggested in your other thread?
     
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  5. baha

    baha Road Train Member

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    Go to a used car lot that may do weekly payments, be sure that they have state dealers lic. and try to offer a bit of cash to help you get paper work done thru them, that should get you a leg up with the bank?
     
  6. skallagrime

    skallagrime Road Train Member

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    Why wont your boss just finance it himself (ie just do weekly deductions on the paycheck)?

    Thats a red flag to me. Hes looking to get cashed out for some reason. If he thought hed still be around, he would just tell you fixed payments of "x" will come from your check, basically he would get the extra 10-20 % interest. Why would he not want that?
     
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  7. brian991219

    brian991219 Road Train Member

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    As a dealer this is very common. Many lenders are not licensed to conduct pruvate sale transactions nor do rhey want the hassle of trying to get a pruvate seller to properly compete all the required paperwork and disclosures.

    There is also the fraud side of things. A reputable dealer will not willingly misrepresent a transaction, and I'm not saying you would either, but it happens often enough that most lenders shy away from private sales.

    You didn't ask but I would try a different finance company, preferably your local bank or a credit union/Farm Bureau lender as they are usually more flexible on these type of things.

    Our dealership has a rule that we do not do these types of pass-thru transactions unless it is for a truck we didn't take on trade and the seller bought it from us or bought another truck from us, then we can help for a fee. Perhaps your seller can go to the dealer he buys from and ask them to run it through their F&I office?
     
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  8. Ridgeline

    Ridgeline Road Train Member

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    Sorry but that’s not true. Private or dealer sale, if a lender is demanding it to be done through a dealer, then there is more to the story from the lender.

    Every dealer I know would never be involved with a private sale because there is a liability for them.

    a private sale just involves a bill of sale and a release of a lien if there is any.

    the op is going to over pay for the combo, his boss should finance the sale.
     
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  9. brian991219

    brian991219 Road Train Member

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    What's not true about it? We deal with this request daily. Most commercial lenders are just not interested in jumping through the hoops of a private sale, verifying condition of the asset, hoping the private seller releases the title lien and encumbrance free and so on.

    Nothing secretive or unethical about it, lenders are free to limit who they do business with just like the rest of us. One would think the finance company would be happy to cut the dealer out so they don't have to pay points, but they are very happy to pay 1-3% for the peace of mind that comes from having a professional title clerk process the sale.

    On the other hand, from a dealer perspective, we prefer to work with our regular lender partners rather than customer's own financial institutions for the same reasons. We know their process and they know ours and our points are already negotiated so we know what to expect. Often the finance points are a large part of the dealer's net profit on a sale, especially new equipment with slim margins.

    I would be skeptical if the private seller was trying to persuade the buyer into using his finace company or something like that.

    The finance company's request for a dealer transaction is very typical, especially for first time or high risk buyers.

    Edit to add: you are right that most reputable dealers will.not entertain this idea for liability reasons. As a dealer we often have recourse from the lender if their is any fraud or wrong doing, clouded title, etc. We will only do it to help good customers sell their used assets we can't or won't take in on trade.
     
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