| Auto note buyers purchase outstanding loan | | | | Some auto note buyers will give the car dealer |
| agreements from car dealers or independent | | | | the option of selling all or only a part of the note. |
| financers. This allows the holder to receive a large | | | | A partial note sale is an agreement between the |
| amount of cash in the short term rather than | | | | auto note buyer and the car dealer to sell the |
| have to wait for the car owner to send monthly | | | | payments for only a specific length of time. Take |
| payments. | | | | for instance a debt that has 12 months remaining; |
| There are a lot of people who need a car but do | | | | the buyer purchases only the first 9 months of |
| not have the cash or credit to purchase one. | | | | those payments leaving the remaining 3 to the |
| These people often turn to used car dealers who | | | | car dealer. |
| offer their own financing, to meet their needs. | | | | To select the right person, a car dealer should: |
| The car buyer will put a small amount down and | | | | Contact a reputable auto note buyer. The easiest |
| make weekly or monthly payments. The total | | | | way is to go to a site that gives you access to a |
| cost of the vehicle plus interest is paid out over a | | | | professional team of industry professionals. Check |
| period of time. The length of time it takes to pay | | | | on their reputation. Ask about available options, |
| off these notes varies but it usually takes from 1 | | | | miscellaneous fees and contract terms. As you |
| to 5 years. This leaves the car dealer with a lot | | | | are talking with the potential buyer, you will want |
| of promises but very little cash. | | | | to look for more than just the best deal. You will |
| Having a lot of paper promises doesn't pay the | | | | want to find the auto note buyer who will be the |
| bills or buy new inventory. What can a car dealer | | | | best match for your business. Pay attention to |
| do if he finds himself in this position? He can turn | | | | how well you communicate with each other. Is |
| to any number of auto note buyers to take this | | | | there a good rapport between you? |
| debt paper off his hands. In exchange for the | | | | After an auto note buyer has been selected, it's |
| right to collect on the loan agreements, the auto | | | | time to get down to business. Discuss your needs |
| note buyer will give the used car dealer a lump | | | | and figure out an arrangement that works for |
| sum cash payment. | | | | you. Draw up a contract that outlines each party's |
| With cash on hand the used car dealer can go | | | | responsibilities. Review contract terms with an |
| about his business. He no longer has to worry | | | | attorney. Sign the agreement. Get your cash. |
| about whether the car buyer will make good on | | | | If you are a used car dealer with a lot of paper |
| his note: that is now the problem of the auto | | | | promises, and need cash now, consider selling |
| note buyer. The car dealer can use the money | | | | your notes to any of a number of auto note |
| that he received to purchase new inventory or | | | | buyers. |
| pay his business debt. | | | | |