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Ask HN: Would you recommend seller financing a car loan?
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.
Has anyone had good or bad experiences doing this? I understand it’s a higher risk considering the buyers low credit score.
If you have had experience doing this, what kind of terms are you glad you put in the contract/what do you wish you put in the contract?
- verdverm 8y agoBad 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 )
- howard941 8y agoIs 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.
- deleted 8y ago[deleted]
- elamje 8y agoAlright 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
- taylodl 8y agoRun 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.