Paying for a tractor---ADVICE

lenray · Mar 12, 2013

I am looking at buying a tractor 350 miles away. 20K cash--I don't have a problem with that. The owner has a loan against the tractor. I am taking a trailer.
I should go to the bank with the owner and make sure he pays off his tractor loan. Anything else I need to do.
Thank you
Untitled URL Link

Anonymous-0 · Mar 12, 2013

link didn't work for me. i would think a good receipt w/copies is all you need with serial numbers and signatures.

Anonymous-0 · Mar 12, 2013

Make sure you get clear title before you pay a cent!!! If the bank has the loan, there should be some paper work to prove the tractor is free of any liens.

Anonymous-0 · Mar 12, 2013

google bill of sale and there is a variety to choose from. Just nake sure evrything is documented you got copies of everything.

lenray · Mar 12, 2013

I don't have a clue as to that link thing--it just popped up there...........

thanks fellas

Anonymous-0 · Mar 12, 2013

I would be very careful when paying cash in that amount,you probably should find out who the lender is.

RodinNS · Mar 12, 2013

DO NOT PAY CASH!!!!!!!!!!!!!!!!!

Pay by cheque, certified if necessary, made payable jointly to the owner and the lender and make sure the lender clears the lein.

Rod

David G · Mar 12, 2013

I would be careful paying cash for a tractor with a loan on it.

Tom OConnor · Mar 12, 2013

The Internal Revenue Service looks real close at large cash exchanges. Their is usually income tax or social security fraud involved, sometimes both when large cash payments are involved. I would use a check or wire transfere to protect myself and if you are going to expense this purchase you will need a tax I'd number or a ss number of the person that you are buying the tractor from if it is not a company.

Andrew.H2oTex · Mar 13, 2013

Be sure that if the Bank has a UCC 1 filing over the vehicle it is cancelled with final payment of cleared effects.

The payment to the bank should be a Bank Guaranteed Cheque and not a personal check.

Deere Scotty · Mar 13, 2013

Go to, or call the courthouse in the county he lives in, & make sure there is only 1 lean against the equipment. Some states allow multiple leans on 1 item.

Tx Jim · Mar 13, 2013

(quoted from post at 00:34:20 03/13/13) Be sure that if the Bank has a UCC 1 filing over the vehicle it is cancelled with final payment of cleared effects.

The payment to the bank should be a Bank Guaranteed Cheque and not a personal check.

I second getting something in writing that the UCC-1 has been cancelled.

ericlb · Mar 13, 2013

i agree with deere scotty you need to check this out carefully, buying a piece of equipment with a loan on it is risky, tractors dont have titles, at least non i ever bought had any, just a bill of sale to prove ownership,and that was only on 1 of them otherwise iv gave the man the cash he gave me the tractor , if that thing has more than 1 loan on it you may lose the tractor if the lender comes looking, might reconsider if you dont know the man yourself

Nebraska Cowman · Mar 13, 2013

I would take a cashiers check from my bank written to him & his bank. If he will not take that I'd stay home.

Traditional Farmer · Mar 13, 2013

I wouldn't take a cashiers check they are easily faked and they can have a stop payment issued against them.

Nebraska Cowman · Mar 13, 2013

They can. But I could bring you a bank letter of guarantee. The post question was about BUYING a tractor, not selling one. If I am buying I am going to pay by check. And if I have any idea the item may have a lien on it I am going to include that institution's name on the check to protect myself. I bough hay from a man several years ago that I knew was pretty heavily leveraged. I was a little bit tactful and when I paid the man I just innocently asked him what bank's name he wanted on the check. He told me.

W_B · Mar 13, 2013

Cash amounts over $10,000 WILL attract attention of regulators, even going to the bank with that much will force them to report it.

RodinNS · Mar 13, 2013

If I was to bet... I'd say this cash is never gonna see the bank. Mabey dribs and drabs here and there....
He'll just be buying himself a loan to repay.

Rod

RodinNS · Mar 13, 2013

I guess if you want to screw the bank over... but chances are pretty good they won't release their lein until the cheque clears.

Rod

dittmerku · Mar 13, 2013

Check the IL secretary of State's office for other UCC filings you may not know about. Here's the link:http://www.ilsos.gov/uccsearch/

Paying for a tractor---ADVICE

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