STEP 1
WHERE TO FIND THE VEHICLE OF YOUR CHOICE
Auto want ads in your local newspaper, auto trader advertising magazines, or any other publications that list vehicles for sale.
(NOTE: Finding an individual who is upside down or in a negative equity situation on their vehicle loan is easy. Most cars within their first three years of their finance contract are in this situation. YOU MAY EVEN HAVE A FRIEND OR FAMILY MEMBER IN THIS SITUATION. IT GOES WITHOUT SAYING THAT A FRIEND OR FAMILY MEMBER WOULD BE IDEAL UNDER THESE CIRCUMSTANCES).
NADA BOOK (NATIONAL AUTOMOBILE DEALERS ASSOCIATION)
Your local library will carry a NADA book. This book will give you the average retail price of any particular car model. The NADA book is published monthly. It also gives you the amount that most banks will finance on those models. If the payoff amount on a car is more than the NADA retail book value, then you will know this seller is in an UPSIDE DOWN position and will be very interested in talking to you.
THE EASIEST PEOPLE TO WORK WITH:
The easiest owner to work with is one who is considering letting their car go back to the lien holder for REPOSSESSION. You can find these owners in your local newspaper or local car magazine. Best results arc obtained in aging these issues for two or three weeks
before calling. The owners will always become more flexible the longer they try to sell their vehicles. If you focus on ads proclaiming Take over payments or Down and take over payments . These are individuals who realize that they are in a NEGATIVE EQUITY SITUATION and can t sell their vehicle outright. Even though their ad requests a down payment, they will almost always wave it.
Most lenders who recommend to the seller, that they find someone to take over their payments, will still hold this individual liable for the payments if there is a default. Many of these lenders will request an application to be submitted from the assignee.
If the seller (assignor) has been making their payments on time, the lien holder may want to keep them in this vehicle. They will want the assignee to have a stronger credit rating than the assignor, before they will give their approval at all.
Traditionally, the COMPANIES mentioned earlier do not even contact or go through the lien holder. Claiming that whether an application is submitted or not, the assignor still remains liable for the payments.
This arrangement allows the owner to monitor their own payments so they are actually more secure, as is the lien holder.
The companies contend that under the Uniform Commercial Code, Article 9. Section 311, that the owner of a vehicle has the right to assign their property regardless of provisions in the original purchase contract by the lien holder, that might claim such a transaction to be in default. The lender will always hold the original owner primarily liable for payments. Even though the payments are submitted by the assignee, the lender will still acknowledge the assignor/owner as the driver and owner of the vehicle. The reason being, the assignment agreement is between the assignee/buyer and assignor/owner, and not the assignee/buyer and the lender.
