Question on buying a used tractor from private party.

TomSeller · Sep 26, 2013

Tx Jim said:
It doesn't hurt to research the UCC-1 for liens. When I bought my used low houred Kubota M7040 I asked my local dealer to check to see if Kubota had a lien on it. They researched the SN plus after I bought it switched the warranty to me.

Very much agree.

NVBigBlue · Sep 27, 2013

Along those same lines as liens, if the price seems to be a bit too good, you can contact your local police / sheriff's office with the serial number to check if the equipment has been reported as stolen.

A guy down the road from me bought a Bobcat skid steer for a 'really great price'. Turned out it was stolen. Sheriff's office seized the equipment and returned it to the rightful owner, but to get his money back, he had to go after the guy he bought it from..... who had bought it from the guy who stole it in the first place

..... as far as I know, neither of them has had any luck getting their money back.

As they say..... caveat emptor.

NV

avc8130 · Sep 29, 2013

Honestly, the best suggestion I can give you is to finance it. The bank WILL go through all of the motions to make absolutely sure their investment is clear of liens and isn't stolen.

Then, just pay it off.

I sold my machine to a guy who financed it. I worked with his lender. The lender was able to see the machine was financed by Kubota and required a statement that the loan was satisfied from Kubota. They also made sure the machine wasn't stolen.

I asked him how they will protect their interest if the new owner doesn't pay and they stated they would be filing the lien with the government.

ac

jcummins · Sep 29, 2013

avc8130 said:
Honestly, the best suggestion I can give you is to finance it. The bank WILL go through all of the motions to make absolutely sure their investment is clear of liens and isn't stolen.

Then, just pay it off.

I sold my machine to a guy who financed it. I worked with his lender. The lender was able to see the machine was financed by Kubota and required a statement that the loan was satisfied from Kubota. They also made sure the machine wasn't stolen.

I asked him how they will protect their interest if the new owner doesn't pay and they stated they would be filing the lien with the government.

ac

Good point.

TomSeller · Sep 29, 2013

jcummins said:
Good point.

I agree, had not thought of that.

rtgt · Oct 2, 2013

When I sell my 2305 I will contact JD Financial and have the seller make out two checks, one to me and JD for the balance owed, the other to me for the remaining balance.

Anyone who has inquired about the tractor I have told them that it is currently finanace with JD.

Ask the seller if there is a loan on the equipment. If he tells you there is and with whom, he is being honest. If there is a question, make out the check to the seller and the lender.

You would also want to know that the amount the seller is receiving is enough to pay off the loan.

JJZ 109 · Oct 5, 2013

rtgt said:
When I sell my 2305 I will contact JD Financial and have the seller make out two checks, one to me and JD for the balance owed, the other to me for the remaining balance.

Anyone who has inquired about the tractor I have told them that it is currently finanace with JD.

Ask the seller if there is a loan on the equipment. If he tells you there is and with whom, he is being honest. If there is a question, make out the check to the seller and the lender.

You would also want to know that the amount the seller is receiving is enough to pay off the loan.

I did this when I bought my Bobcat skid steer. The seller got some cash and a cashier's check was obtained for the balance to his lender. He forwarded me a copy of the paperwork stating that the lien had been satisfied not long after I brought the machine home. I think he was really worried that I would think him dishonest if paperwork wasn't cleared up immediately. But I knew people that knew him so I had no real worries. Fortunately the machine had been purchased new at a dealer about 12 miles from me so I could check with my friend the parts manager to get the history of the thing before I purchased.

flusher · Oct 5, 2013

jcummins said:
Since tractors do not have titles, how can you be assured a tractor doesn't have a loan on it?

Have a bill of sale ready for signature that includes a clause saying that the tractor is free of liens. Have the Seller sign the BOS and write his driver's license number under his signature. Check his picture ID to be sure he is who he says he is. It's not perfect, but at least it's something your lawyer can work with if the deal goes South. I've bought 5 pre-owned tractors so far this way with no problems.

Good luck.