PROBLEM: A person has a car he no longer can afford. It may be about to be repossessed.
PROBLEM: Another person has a "Bad Credit" history and cannot buy a car, but can well afford to make the payment on a recent model vehicle.
SIMPLE SOLUTION: Put these two people together. One person will assume the other persons payments and insurance.
NEW COMPANIES EMERGED
A few years ago an industry emerged that served the needs of individuals who have had past credit problems, but can now afford monthly car payments. These companies helped people with past credit problems such as:
No Past Credit History
Many Other Problems
These setbacks are held against these individuals by lending institutions for up to seven years.
WHAT THESE COMPANIES DO
These companies would find vehicle owners who can no longer afford their monthly payments. These owners would gladly allow someone to take over payments on their vehicle in order to save their credit, with no credit check.
These companies charge the Buyer/Assignee between $1,500.00 and $3,000.00 for their services just to put these two parties together, without doing a credit check.
This information package gives you all the simple secrets on how these companies perform their services. You can save the $1,500.00 to $3,000.00 fee that they would typically charge.
With your persistence and guidelines in this information package, you can get the recent model vehicle that you want, without paying any fees or down payment.
(NOTE: This information will not assist you in going to a new or used car dealership to get a car. This information is intended to target individuals wishing to sell their vehicles to an individual buyer, one on one.)
THE SELLERS DIFFICULTIES
Ideally, these sellers would like to sell their vehicle for the bank payoff amount. Several factors may be preventing them from doing this:
A. They have high mileage.
B. They are unable to show their vehicle to a prospective buyer (because of work, school or other conflicting situations).
C. They are in an area experiencing a soft used car market.
D. They put very little money down when they bought the car and still owe more than the book value amount indicated.
E. They financed their car for a long period of time (6072 months) and have not built enough equity in the vehicle.
F. The biggest reason is they cannot sell their vehicle because they simply owe more on the vehicle than the vehicle is worth.
THE OWNERS CHOICES
A. They can sell their car for market value, then pay the lien holder the difference of what they owe, (in cash). This could cost the owner several thousands of dollars up front.
B. The second choice, which has recently gained in popularity, is letting the car go back to the lien holder.
(If the dreaded repossession choice is used, the owner will have a seriously damaged credit history for seven years.)
YOU AND THE OWNER CAN HELP EACH OTHER
You help the owner by taking over his or her monthly obligations (car payments and insurance), and the owner helps you by putting you into a recent model vehicle. You both help the lien holder because you will be making the payments on time and the lien holder will not have to take a big loss on the vehicle by repossessing it.
SUGGESTED ASSIGNMENT AGREEMENT
The Suggested Assignment Agreement included in this information package is a suggested agreement only. There may be provisions added to or deleted from the agreement between you and the assignor (owner) to make the transaction acceptable to you both, but remember, it is intended for you to use as a guideline only. The Assignment Agreement is between you and the owner of the vehicle. The vehicle remains titled in the owners name until all payments are made and the original loan is paid off. At this time, according to your Assignment Agreement with the owner, he/she has to sign the title over to you within thirty (30) days after the car is paid off.
LIEN HOLDER PURCHASE AGREEMENT
This type of transaction is very common with Real Estate. Typically, the owner of a house will rent his property and still be solely responsible for the monthly mortgage payments. The payments are being made even though the owner is not living in the house. The renters have a contract between them and the owner, not involving the mortgage company. Some purchase agreements from the lien holders may have provisions against subleasing or assignments , claiming it would be a default of contract. Many disregard this provision and do not contact the lien holder for their approval, claiming that as long as the payments, insurance and vehicle maintenance were maintained, the assignment of the vehicle would fulfill the lien holders requirements, and it would not be necessary to inform the lien holder of the transaction. We recommend that you contact the lien holder in writing to inform him about your agreement.
YOUR SUCCESS IS GUARANTEED
Using this system, an individual can obtain a vehicle on merits such as character and ability to pay, rather than credit history. There are no turn downs. Everyone qualifies because a credit check is never run. Your success is guaranteed.
Remember, you must be persistent, make several calls, and always project a good image over the telephone and in person. This information is not intended for purchasing a vehicle from a new or used automobile dealership. It is not our intent to give legal advice. Each state has different laws. If you have any questions pertaining to state or local requirements, contact your State Department of Motor Vehicles or your attorney.
UPSIDE DOWN OR NEGATIVE EQUITY
Let us take this opportunity to explain what is meant by upside down or negative equity. Lets use the following as an example: Say the owner of a car owes $12,000 to the bank for the payoff of his car. The average retail value of the car (what a car lot would sell the vehicle for) is only $10,000. If the vehicle is selling at a car lot for $10,000 then few people would be willing to pay them the $12,000 that they owe. The loan value on this car (what the bank will loan someone with good credit) may be only $8,000. This means that if a person with good credit wanted to buy this car for $12,000, they would have to borrow $8,000 from the bank and would have to come up with another $4,000 in cash to satisfy the lien holder.
Payoff to Lien Holder $12,000
Average Loan Value $ 8,000
Average Retail $10,000
Difference or negative equity (in cash) $4,000
The seller will have a difficult time finding someone who is willing and able to put $4,000 in cash down for a used car. A buyer with good credit can go to a dealership and get a new vehicle with only a few hundred dollars down. So, the chances of the owner selling the car to a person with good credit are very slim.
By explaining upside down or negative equity to the owner, you will let him know why he is having problems selling the car and that he may only have three (3) options left at this point. The owners options are:
Option #1: Sell the car for market value of $10,000 and pay the bank $2,000 out of his own pocket.
Option #2: Turn the car back to the lien holder for repossession and not pay the lien holder the difference of $2,000. This option will ruin the credit status of the owner for seven (7) years.
Option #3: He can let you assume his responsibilities of payments and insurance, save his credit status and not have to pay the negative equity of $2,000.