Just wondering if many of you have heard of, or been in agreement where someone buys a used car off another person privately and doesn't quite have the cash so it is arranged between the two that the buyer will pay the remaining amount off over a set period of time.
My mother bought a car a few years ago in a private agreement like this where it was about 2k remaining and she paid it off to the guy over a year, im just wondering how common a practice this sort of thing is...
Even amongst friends such a deal is just to risky..and if payments stop how do you reposses the car when you are not holding any title over it as a lease/finance company would until final payment...I'd advise STAY CLEAR!
Its called vendor financing and is done in the real estate industry frequently.
The seller offers finance to the purchaser, usually at an interest rate 1-2% higer than the banks. The purchaser then pays back the seller over the agreed term. Obviously a lot of legal stuff has to be put in place for this.
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