Q: I need a owner financing note that vehicles.
I need a owner financing document that protects me from buyers that will take the vehicle, never make a payment under contract, or total the vehicle and never make a payment again
A: If you are a private individual selling a car, you should NEVER sell a car unless you receive payment in full at the time of sale. If you are a dealer, you should have ample availability to lenders and/or you should have a professional business relationship with an attorney who can provide you with a form or draft one. The worst thing is for you to obtain a document on the internet, regardless of who provides it, that is boilerplate and not tailored to your specific business.
A: You need a Note and Security Agreement. The Security Agreement grants you a security interest in the motor vehicle so you can take it back for non-payment. You will need to record the Certificate of Title showing you as first lienholder and hold onto the title until full payment of the Note. There are documentary stamp taxes to be paid on the Note. Make sure your interest rate is not usurious. Also, make sure you are named as an additional insured under the buyer's insurance policy. Obtain a Certificate of Insurance.
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