Contract for the Private sell of used vehicle

[MCW]

What is the name of your state? South Carolina

I am selling a car to a friend and want to write up a simple contract that states the information on the vehicle and the agreement on the price. I have agreed to accept a down payment with montly payments until it is paid off (no interest incurred). I have included the payment plan in the contract, as well as stated that vehicle is sold "as is" with no warranties.

My question is South Carolina DMV requires the title be signed over to the buyer before they can register it. If I sign the title over before they pay the full amount will I have rights to the vehicle if they fail to keep their end of the deal? Is there something I can put in the contract to protect us here?

I want to help them out as much as I can, they really it, but I don't want to get screwed over in the process.

 

[shortbus]

Depends how much you trust your friend. In theory you have rights after the title transfer, but the old axiom is true: possession is 9/10ths of the law. Once you transfer title in full, you have very little leverage.

 

[seniorjudge]

Depends how much you trust your friend. In theory you have rights after the title transfer, but the old axiom is true: possession is 9/10ths of the law. Once you transfer title in full, you have very little leverage.

Query: What does a title transfer have to do with possession?

 

[drago]

Have your name on the new title as 'lienholder'.

 

[seniorjudge]

What is the name of your state? South Carolina

I am selling a car to a friend and want to write up a simple contract that states the information on the vehicle and the agreement on the price. I have agreed to accept a down payment with montly payments until it is paid off (no interest incurred). I have included the payment plan in the contract, as well as stated that vehicle is sold "as is" with no warranties.

My question is South Carolina DMV requires the title be signed over to the buyer before they can register it. If I sign the title over before they pay the full amount will I have rights to the vehicle if they fail to keep their end of the deal? Is there something I can put in the contract to protect us here?

I want to help them out as much as I can, they really it, but I don't want to get screwed over in the process.

You need to make sure the insurance on the vehicle lists you as loss payee...when it gets wrecked, you may wind up with nothing otherwise.

 

[LamarS1231]

My advice to you is to let your friend find financing and have him buy it from you in full. You don't want to put any bad blood between your friendship over a car. Tell your friend to find a bank that will give you a loan for the amount of the car and then we can talk. However, if you insist on doing this contract with your friend then you need to put a clause in that states he will forfit possession of the car if he misses ___________ amount of payments as scheduled in a disclosed schedule of payments (set up a squedule of payments that is written down and agreed upon). Furthermore, you should require that your friend have full coverage insurance during the duration of the payment period. He needs to sign all of those agreements and ask him to provide you with the name and number of the insurance company in which he will be insuring this car with. My best advice is not to enter into the contract and let your friend find a lender. God bless