
Ask HN: Would you recommend seller financing a car loan? - elamje
I am selling my car for around 13 or 14k. I’m only considering private sale, and a potential buyer asked me if I would do seller financing since presumably his credit won’t allow a bank loan.<p>Has anyone had good or bad experiences doing this? I understand it’s a higher risk considering the buyers low credit score.<p>If you have had experience doing this, what kind of terms are you glad you put in the contract&#x2F;what do you wish you put in the contract?
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taylodl
Run away! Run away! If a bank won't touch someone neither should you. Heck,
there are numerous buy here/pay here car lots and I'd assume this buyer has
been turned away by all of them. Seriously, don't even _think_ about going
this route.

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howard941
Is it a friend? I'm assuming not and I don't want you wishing that you never
did this. Towards that end, because you're asking you almost certainly don't
know how to properly retain a perfected security interest in the car. You need
to determine if it's worth dropping $500-1K on having your attorney draw up
the loan and security agreement and instructing you how to go about perfecting
the security interest in your state.

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elamje
Alright everyone, after your input I’m going to dive in and write up a simple
agreement today. Is 3% interest too much?

Lol, just kidding thanks for the comments

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verdverm
Bad idea, if they can't get a loan from someone who is in the business of
loans, why would you go that path? ( Most likely you'll end up in court trying
to collect )

