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Contract Letter Help


Jurgen-Jm-Imports

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can anyone on this board write me a contract letter.

 

am selling my wrx to a friends friend for £4500

 

he is going give me £250 a month.

 

i dont want to lose out and he is prepared to sign a contract.

 

Here is some ideas i have to include in contract.

 

-event of his death-

-event of car being stolen or crashed-

-event of fault on payments ( could be flexible for few months but then i need to reposses)

-am not responsible for any mechanical problems he may incurr while on lease till its bought-

 

anything else i need on it.

 

and could somebody write it in a proffesional way for me am willing to pay a fiver for it.

 

a just dont want to give a car and just rely on recieving the payments till its payed off i want to have some kind of agreement with him.

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If you want my personal opinion unless you trust the guy totally then don't do it

 

If it goes wrong, whether or not you have a fancy contract, you will have a nightmare, and if he is without funds, you''ll be fighting it through the courts and you might end up with nothing, even if the court awards you something, if he is skint you won't see any of it

 

Tell the guy to get a loan himself and pay you in full on delivery

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I would agree with daveRex, personal contracts like the one your after don't really stand up for much and you would have to go to court on more than one occasion to sort it out an then it could be a "I can only afford a fiver a month job"

 

To have an agreement with throws its weight around so to speak you have to be a financial company which is regulated by the FSA (financial services authority) or GISC which allows them to re-cliam the car etc etc in case of default.

 

Even though I'm a Financial & Mortage advisor I would not attempt to do what your asking, just wouldn't be worth the risk.

 

I would tell him to get a personal loan and if he can't then contact an adverse loan provider like Yes car credit or Blackhorse. There rates are higher but they accept just about anybody.

 

Hope this helps.

 

Grant

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Something like this should be done through a solicitor IMO - for the expense of the work you could save yourself a lot of hassle later on.

 

If he can pay £250 a month why doesn't he give this to a bank in exchange for a loan and pay in full?

i have asked this but he says he has problems getting credit but he has the funds, i know a lot of people in this situation its not uncommon.

 

i remember a time when i was 18 and nobody would lend me £3000 to buy a car, and then a mates dad did and i paid him back in full with out fail, and i really appreciated his generosity.

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I would agree with daveRex, personal contracts like the one your after don't really stand up for much and you would have to go to court on more than one occasion to sort it out an then it could be a "I can only afford a fiver a month job"

 

To have an agreement with throws its weight around so to speak you have to be a financial company which is regulated by the FSA (financial services authority) or GISC which allows them to re-cliam the car etc etc in case of default.

 

Even though I'm a Financial & Mortage advisor I would not attempt to do what your asking, just wouldn't be worth the risk.

 

I would tell him to get a personal loan and if he can't then contact an adverse loan provider like Yes car credit or Blackhorse. There rates are higher but they accept just about anybody.

 

Hope this helps.

 

Grant

i will look into this at blackhorse for him.

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i have asked this but he says he has problems getting credit but he has the funds, i know a lot of people in this situation its not uncommon.

 

i remember a time when i was 18 and nobody would lend me £3000 to buy a car, and then a mates dad did and i paid him back in full with out fail, and i really appreciated his generosity.

 

People can't get loans for good reason usually though mate

 

He is 36 and can't get credit for £4250 ?

 

and you want to trust him to pay you £250 a month for 17 months ?

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Some companies will let you insure someone else's car but its a bit messy.

 

If you do as boneyard suggests, which is a valid option you could also come unstuck as if he gets speeding or parking offences etc then again it could get messy.

 

If he is really struggling to get credit from Yes car credit or black horse then he would need to speak to an indepent financial advisor and arrange a personal loan with someone as a "Guarantor" but make sure the guarantor knows that they are ultimately responsible for the payments.

 

Hornet

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Some companies will let you insure someone else's car but its a bit messy.

 

If you do as boneyard suggests, which is a valid option you could also come unstuck as if he gets speeding or parking offences etc then again it could get messy.

 

If he is really struggling to get credit from Yes car credit or black horse then he would need to speak to an indepent financial advisor and arrange a personal loan with someone as a "Guarantor" but make sure the guarantor knows that they are ultimately responsible for the payments.

 

Hornet

am taking everything that everyone has said on board so thanks for the response on this matter, how about if i get him to sign something aswell to say he was driving the vehicle from such a date.

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Why dont you register the car as yours until its paid off. If he defaults in payment, then report it as stolen. Once hes paid up re-register. You'll have to insure in your name with him as a named driver, but he pays the premium

 

If it came to light you were a trader and had a contractual arrangement the police would not trest it as stolen, it would be a civil matter and you'd have to go to court to reposess

 

You don't hear of people defaulting on car leasing agreements and the police turning up and arresting them for theft

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sorry what i mean is if i leave the car in my name and me keep the logbooks, how can he insure the car if its not in his name

 

Thats why I said you insure it in your name and him as a named driver, he just gives you the money for the premiums. Same goes for tax.

 

Just a way around it all if your determined to help the guy out.

 

Hornet does have a point about parking / speeding fines, although if you can prove you werent driving at the time then it falls to him anyway...doesnt it?

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so how does this sound i stay the registered keeper, and still write a contract about how many payments he needs to do before he become owner. (if he does not give car back it will be reported as stolen)

 

i also get him to sign a letter saying he s responsible for driving and parking offences from the date he collects car until its paid off.

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Thats why I said you insure it in your name and him as a named driver, he just gives you the money for the premiums. Same goes for tax.

 

Just a way around it all if your determined to help the guy out.

 

Hornet does have a point about parking / speeding fines, although if you can prove you werent driving at the time then it falls to him anyway...doesnt it?

good point there on insurance

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If it came to light you were a trader and had a contractual arrangement the police would not trest it as stolen, it would be a civil matter and you'd have to go to court to reposess

 

You don't hear of people defaulting on car leasing agreements and the police turning up and arresting them for theft

 

Thats the point...he wont have an agreement. Its Jurgens car...his mate is only a named driver on the insurance, he still need owner permission to drive it, so if he defaults...."your nicked my son"

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As the others have said, going down the route of a contract sale is very dodgy and could turn into a nightmare. Your legal recourse is next to nothing and the cost of litigation would be quite high.

 

I would also not recomend the option of keeping it in your name and insuring him as a second driver. What if he smashes it up? You will lose your NCB and wll have to declare the claim on your future insurances.

 

I think thsi is one occassion whereby I would walk away unless he can come up with the readies.

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It would default to the owner, but fancy solicitors can get around this. Trouble is, on a much worse note, what if his has an accident and kills someone then denies knowing anything about it etc etc.

 

IMHO there is too many things that can bite you in the arse and cause all sorts of problems. The only way to save all future hassle is for him to arrange his own financies and you sell the car in one go.

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