Hey guys. I'm currently selling my 93 Del Sol. I'm talking to a guy who wants the car, knows the previous owner of the car and just graduated from one of those half way house programs. That all being said, he seems like he is going to take care of the car, yet obviously I don't know that for sure. I've always had somewhat of a soft spot for halfway house guys due to my father being in one and he came out a changed man. He has a job and is making steady income, but his credit isn't good at all. He can't get a loan and is asking me to finance.

My question is if I do decide to become a lien holder what protection do I have if he trashes this car? I did some googling, but I couldn't find much of anything. I know I can repo if he has a missed payment. We plan to head to the an attorneys office to have them drawn and notarize the paperwork. He will have a down payment on the vehicle. Because the way I see it, he could blown the engine, decide to not make payments, when it gets repo'd I'm out an engine and how ever much I didn't get payed.

 

Re-read that 300x, then reconsider what you're gonna do.

 

One thing to consider on top of all that - What happens if he takes great care of the car and pays regularly but then gets in an accident and insurance only pays a portion of what he still owes you. Will he continue to pay you when he has nothing to show for it?

Why put your own financial health on the line for someone else? Moreso if it's "just a guy" and not someone you know personally?

Maybe the guy can get someone else to co-sign on a loan for him? Then you're in the clear and it falls on the other two against a bank who has the resources and systems in place to deal with a potential default.

 

I completely understand those risks. I just didn't know if there was any type of protection. Since I can see that it may or may not stand in court, I told him no. Thanks for the reply guys!

I believe if it was someone I knew, I might try to assist more, but otherwise it's not going to happen.

 

As you have a soft spot for the guy (nothing like helping someone in need-I have been on the 'need' end before) I might check with an insurance company to answer some of the above questions and scenarios. You can make sure insurance is paid (he pays you an agreed amount for insurance) or you just get some to cover any deficiencies.

 

You're talking about accepting all the financial risk with little to no reward. You would also want to maintain insurance on the car since technically you are the owner. Sounds liked you'd lose out either way. Nice of you to want to help the guy out though. Ever heard of wheels for hope? http://www.wheels4hope.org/

You could donate the car to them, write it off on your taxes, and then have him get the car from them.

 

Seems like a lot of trouble for a '93 Del Sol.

 

Hell yeah is this del sol highly modded?? Seems like lawyer fees would be more then the cost of the car! Plus time