financing cars??

[Bear95]

If you finance a car to someone whats the best way to make sure they make payments and if not get the car back? ive thought about putting gps in it but thats to costly and awkward to get back. there has to be some simple thing ive never thought about

[DJM]

The best way is don't do it.

DJ

[ShockValue]

The best way is don't do it.

DJ

X2.

Thats what banks are for.

[grassmaster]

DJ's right. Don't do it. There are some legal hurdles and you will need a good contract to start with. Outside of that, if you have to repo and you can't find the person who is delinquent you will be in for some charges from a Private I to find it.

[Cam-Mac]

I'm with everyone above- dont do it! Especially for family!!!

[Buckshot-73]

Never... May as well give it away as a gift.

[Hammerdown]

X whatever the count is

[cowboy1g5]

Dont do it. It never ever works out.

[marceco]

If you are an individual it could / would be risky at best . If you are a broker / dealer you can set up a deal with your local bank . I am not sure of all the intricacies but I have a couple of friends that were in the car business and the set up a deal with the bank where they got " points " on all the loans they set up through the bank . in other words they would make their initial profit when they sold the car and then had residual income coming in from the loans the financed through the bank . . .

[gumbl3]

Just my opinion. If they can't get their own financing there's probably a reason.

If you do want to do it, I would be sure to get enough of a down payment to cover the most you're willing to loose then consider any payment after that to be gravy

[60 Deluxe]

Get what it is worth as a down payment. List yourself on the title application as first lien holder. Charge 25 per cent interest. Go with them to the title transfer office to make sure the title is changed out of your name.

[LWD]

If you insist on doing it—and as several others have noted, it's a really bad idea—have a GPS tracker with a kill switch installed on it. Google "gps tracker with kill switch" and you'll find them. These are things that tote the note and other high risk lenders have installed on the vehicles they sell to deadbeats.

Now, and I'm assuming this is for a friend or family member, be ready for every BS story you can imagine to come your way when the payment is late. Then we you shut it off, be ready for every tear and tale of woe you've ever heard to come your way. I couldn't believe what all a friend's son told him when he didn't make the payments on the car my friend had co-signed for him.

You should really exercise some tough love and make this person drive a car they can afford or deal with the consequences. Sometimes lenders push the borrower for a co-signer for their own protection not to make the loan. I.e. they require it so they've got somebody who can actually pay to go after. Remember that so when this gets messed up and you're paying for it and the other person is onto the next car and co-signer, you'll at least have been warned.

LWD

[rvd]

I would highly recommend you not do it and then when they ask you to co-sign a loan with them, don't do that either. I've done both for family and eventually made it work out but not something I would ever do again or recommend to anyone.

[LWD]

I reread your post. Are you talking about toting the note for someone? I.e. you sell your old car to them and they pay you instead of finance it? If so, the trick is to get the car back in decent enough shape to resell it to recoup some of your loss. Again, the gps tracker with kill switch is the answer. Just remember that deadbeats usually don't take very good care of stuff. So if you have to repo it, don't be surprised if it's trashed. As with houses, if they know it's going back, they may not care.

P.S. Don't forget to keep a set of keys.

LWD