transfering truck payments.

What you DON'T want to do is pay him directly and count on him to make the payment. I would think you would need to qualify with the bank or whoever has the title and gave him the loan....or treat as a straight purchase and get your own financing for the amount owed. But make sure it's legal or you will more than likely get screwed.

 

osumike33 is spot on

 

talk to the person/place with the loan/financing and see if it's an assumable arrangement. In other words, you take it over. You'll pretty much have to go through a finance approval as if you were just going to be purchasing it straight out though.

 

Step #1 You go with the seller to a Lawyer and create a Bill of Sale (with the details you want to expossed) were the seller gives away his rights to the property.
Step #2 Seller gives you the Last Statement that shows Balances and payments to be made.
Step #3 Seller changes the address himself so you receive statements at your address. And if there is a E mail account involved; change E/mail info for the accounts and password so you and only you can access it.
Step #4 Make payments for 90 days (3 Months) to the Bank with your payment option; and keep all proof in a personal record.
Step #4 On the Fourth Month Notify the Bank of the transaction by providing NOTORIZED copy.
Step #5 Keep payments up to date and wait for the Bank to Contact you.
Step #6 Be ready to Submit a Full application for the account to be transfered to you. **This is the way I did it Twice in the past; and it worked fine for me and the seller. ** ALWAYS REMEMBER THAT IF PAYMENTS ARE NOT PAID; THE BANK IS GOING TO COME AFTER THE ORIGINAL OWNER, and they DO NOT have to notify you when they pick the UNIT (anywhere in the Country). **Because they will!!

 

Maybe you can email someone like paccar finance and let them know you're interested in assuming the note of a troubled independent. But bottom line, the process SHOULD require you meet financial credit-worthiness standards as if you were buying any other truck with a loan, if you're to get the truck into your name as it needs to be.

A trucker who is having second thoughts about the business is not just going to hand you a truck and payment book and hope you pay to protect his credit rating, and on the flip side, you need to assign yourself as the person responsible for the note to build your rating ASAP (meaning you have to go through the normal credit application process as anyone else)

 

The first thing to do is make sure you don't just pay him and rely on him to make the payments as one day the truck might be gone if he kept the money himself.

You should look at finding your own financing as you may get a better deal than he will, he isn't showing credit worthiness so he could be paying a higher interest rate than you may otherwise. The other thing to look at is, why should you be paying full price, yes it leaves him in a hard place (but that is the nature and risk of selling an asset when in need) but only pay what you think the truck is worth. He will be firm on the price as he needs it to pay it off the loan but it might not be what it is actually worth. Yes it can tug on the heart strings that the guy is in need of help but at the same time you need to do what is best for your business, its not a charity. Depending on how desperate he is he may sell it even cheaper just to unload it and get the cash.

Also look at why he is behind his payments and looking to sell. Is there not enough work for the truck or maintenance bills are too high. If its the first reason, make sure you are not in the same line of work/company. If that latter don't buy the truck because you won't fair any better.

 

Who ever holds the note on the truck holds the cards. Every contract/loan is different so will need to contact them along with the person who has the loan to find out what is required. You of course will also have to qualify for the loan.

If the person is upside down in the loan then you don't even want any part of the truck.

Upside down means the owner owes more than what the truck is worth.

 

All good points and factual according to the resident banker with one more to consider.......( since you didn't specify the truck )

If the seller say bought a new one..( 150k Pete ) and has had it a short time ( 12 or so months ) ....when you go to buy it they will rerun the book value and if the numbers are too low then they won't do it with out cash to even it up regardless of your credit.

So lets use the same 150k Pete delivered...... and he put tax and FET down but carried the rest then he financed 150k for 5 years or about $2400 a mo @8%....he hasn't begun to dent the principal YET the value has depreciated probably 30% down to the $105k area. In this example the bank is going to want 30k in cash to refinance the truck.

Also traditional banks ( Chase etc. ) do not allow loans to be assumed ( except houses and noted in the original contract ). The recession and the feds have made them extremely gun shy on risky paper. They may allow you to buy the truck but keep him on loan as co-signer......dunno. Too many unknowns here.