Can I legally offer finanacing on things? How?

L

Left_Blank

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For example, lets say I am selling a car for €6000. The person trying to buy it doesn't have the cash on hand to but the thing outright and cannot get a bank loan for whatever reason.

Can I offer to take a down payment on the car of lets say €2000 and then let the buyer pay off the rest in monthly instalments with some interest applied.

If they pay all the monthly payments then they assume full ownership of the car. If they default on a payment somewhere down the line then I repossess the car and I can try to resell it or do whatever I like with it. I also keep the down payment and all money paid up to that point obviously.

Is it possible to set up a deal like this? What would I need to do it, a solicitor? What are my chances of never seeing the car or any money again and is there anything I could do about this?
 
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Not 100% sure but what you are describing sounds very much like money lending so you will probably need a licence from the Financial Regulator.
 
The way garages do it they are set up as dedicated sales outlets (tied agents) for a finance company. They help the purchaser complete the proposal forms which are faxed to the finance company for approval. If the deal is approved, the garage collect the first payment and the finance company pay the garage for the car and their commission on the finance package sale.

Is this what you mean left_blank? If not, then Sunny is correct.
 
If this is a private sale you can do whatever you want to achieve the best price. However, doing this method is risky as how do you know that the repayments will be kept up. It is for this reason that financing companies have insurance and take security carry out credit check etc.

If you are selling to a unrelated third party I would strongly suggest that you find an alternate purchaser who has the cash. If they are unable to take out a personal loan to pay for the purchase of the car then I think you should adopt a similiar attitude of the bank and assume they are a risk!
 
There is no reason why a consumer cannot lend money to another consumer and charge interest.

However, it would be better for clarity increasing the sales price of the car.

I think it would be a very risky thing to do. It's very difficult to enforce consumer debt and very dangerous to repossess the car.

You could ask for 6 post dated cheques. Then you would not have to prove in court that the buyer owed you money. You would get a judgment for the amount outstanding almost automatically. But trying to collect it would be very difficult.

Brendan
 
Having looked into it, it appears you are not considered a money lender if you are charging an APR of less than 23% so the guys are right. Shouldn't be a problem unless you are screwing the buyer!
 
Brendan said:
There is no reason why a consumer cannot lend money to another consumer and charge interest.

However, it would be better for clarity increasing the sales price of the car.

I think it would be a very risky thing to do. It's very difficult to enforce consumer debt and very dangerous to repossess the car.

You could ask for 6 post dated cheques. Then you would not have to prove in court that the buyer owed you money. You would get a judgment for the amount outstanding almost automatically. But trying to collect it would be very difficult.

Brendan
Click to expand...

Sorry for bumping this (kinda) old thread.

If the object being sold is a house (immovable) rather than a car do things become easier. Repossession becomes somewhat simpler since the defaulters at least can't run away!

What are my options for enforcing consumer debt other than post dated cheques? Can I take them to court?

Or perhaps a more elegant solution would be to place the title deeds of the house in legal limbo pending receipt of payment of the loan? Is this possible?

If nobody knows, any ideas where I should go to find out more information about this subject.

I know this is a ridiculous amount of questions and ignorance on my part.
 
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