question - for finance peeps

pumpkinpumpkin

I'm selling my little sister my car. I am also carrying her financing. I'm trying to write up an agreement...and just wondered what all to include in it? She's going to pay me $75 bi-weekly for 24 months. If she misses more than 3 consecutive payments, the car will be reposessed by me. How do I word this?

wdc*bride

You don't have to get supertechnical about the language - it's enforceable so long as it's clear what the agreement means.Just a few thoughts: 1) Do you keep all the money she's paid you so far if you repossess it?  I'd include that info.2)  Are there penalties for late payments, or 2 missed payments?3) I'd make it clear in the agreement that she is not allowed to refinance the car in any other way without your permission, like a title loan or second loan of any sort.  If you're worried about her financial responsibility in this regard, you should retain the title for this reason, too.Dealing with family can be dicey, and working out these kinds of details ahead of time can only help.

ffmaid

Would you really be willing to reposses your fsisters car over less then $900. I woudl not sell her a financed car to my family either she pays the whole cost upfront or you give it as a gift. To tricky to play banker and too liekly to cause family disharmoney. Try prosper .com for making personal loans however since it allows you to make it direct payments without her having to write you a check every 2 weeks

AlexiaANDRobert

I guess it depends on your relationship with your sister. My sister got married, moved to Germany, and left me her car.  I had to pay the payments on it until it was paid off, and then it was mine.  She didn't profit from this arrangment. It worked for us.

pumpkinpumpkin

It's not over $900, ffmaid. And yes, I would. She doesn't have fabulous credit history. Which is why I've agreed to finance her. She's paid me what was owed on the car already. Good points...I didn't think of the her re-selling possibility.

ExpatPumpkin

Include a provision that she must carry adequate insurance.