Selling car with deferred payment

[Andrash]

What is the name of your state (only U.S. law)? Virginia

I am selling my car and a prospective buyer asked me to pay in two installments (half of the price now and another half in a month). I want him to sign some sort of a contract, but don't know how to go about the wording and how to ensure it is legally binding. Are there any sample contracts available on the web? Is notarizing the contract sufficient or are there any other legal procedures?

Any help would be appreciated.

 

[InsaneJane]

I think that is what you are trying to do is sell the vehicle while loaning half of the funds to the buyer, You don't want to take on any liability for the vehicle after it is sold.

Do you know this person?
If not I would be more inclinde to take a deposite and have them borrow the $ elsewhere.

 

[justalayman]

you can make the contract as ironclad as you want but it doesn't mean anything if the guy simply refuses to pay. You can due him based on the contract and even get a judgment. Then, you have to collect on the judgment. If he wouldn't pay on the contract, what makes you think he will pay a judgment.

there are other things to think about other than just having a contract.

Is this somebody very close to you?

do you intend on keeping the title in your name until it is paid in full?

are you letting him take the car for the 1/2 down?

 

[Andrash]

Thanks for the replies. InsaneJane, your description of the de-facto situation is correct. The person works in my company, but I don't have any close ties to him, so you are right - I am probably better off asking him to borrow the money from someone who actually trusts him.

 

[CraigFL]

Another big danger is that he will think he doesn't have to pay the balance if he has a problem with the vehicle.

And make sure you are not on the title even as a lienholder or you will have responsibility.

 

[Zigner]

Another big danger is that he will think he doesn't have to pay the balance if he has a problem with the vehicle.

And make sure you are not on the title even as a lienholder or you will have responsibility.

That is NOT true. A lienholder does NOT have responsibility (ie: for an accident, parking tickets, etc)

 

[CraigFL]

That is NOT true. A lienholder does NOT have responsibility (ie: for an accident, parking tickets, etc)

Even if the car is abandoned in a parking lot and they can't find the owner???

 

[Zigner]

Even if the car is abandoned in a parking lot and they can't find the owner???

Even if...

I mean - do you think B of A would be on the hook if the above happened? Nope.