Anyone know how to put a lien on a car I sold?

[JDEstill]

I sold an old pickup to a guy this weekend, and am letting him pay me in installments. I don't want the truck in my name any more, I want it in his name, but I need something to hold over him to make sure he actually pays me the money.

Any ideas? My neighbor was telling me he did the same thing once, and he had a lien put on the car, just like when you get a loan on a car from a bank. But his uncle set it all up for him and he has no idea of the procedure to do that. Is that a good idea for me? Anyone know of a better way to handle this?

John

 

[GN One Day...]

Just go get a title application and fill in the blanks. There will be a place for you to fill in as lien holder. Fill it out as fully as possible or it might get kicked back to you, send in the title you have--the most recent one--with it. The new title will be sent to the address you put on there as lienholder and a copy to your borrower. There'll be a small fee. There should be instructions on the back. Probably pick it up at the same place you get your car tag.

*Be sure to get a Note drawn up for the guy to sign, if you haven't done so already.

 

[turboscott]

Depending on the state there might be a place on the title to mark it so when he gets it registered with the DMV you will automatically be placed on the title as a lien holder. I would also make sure you get the whole deal in writing!

 

[ghall]

Great advice above.
One thing i did when i financed a car(actually a couple of times)---was go to officemax or office depot and get a receipt book(with carbon copy) to record each payment.Give the person who bought the vehicle his copy and then you have your records tucked into one little book---very good in-case of a dispute.

Geoff

 

[JDEstill]

Thanks for the advice, I got on our tax collector/assessors web site, downloaded the form, and sure enough there is a spot for the lien holder.

I did get the deal in writing, so that part is covered. It's only 4 payments. This is definitely a work truck, the guy is using it to start a landscaping business, and he's got to go put himself to work to get the money to pay me off. Seems like a decent kid, so I decided to take a chance on him. We'll see how it works out.

John