Welcome To Signs101.com: Largest Forum for Signmaking Professionals

Signs101.com: Largest Forum for Signmaking Professionals is the LARGEST online community & discussion forum for professional sign-makers and graphic designers.

 


  1. This site uses cookies. By continuing to use this site, you are agreeing to our use of cookies. Learn More.

How to cover my A$$ when buying a piece of leased equipment!

Discussion in 'Business Management' started by rcook99, Feb 6, 2013.

  1. rcook99

    rcook99 Very Active Member

    2,139
    3
    38
    May 25, 2006
    NE
    Ok so I am looking at buying a used piece of equipment from a small business who still has a lease on it. I have called the leasing company to try to find out what needs to be done. I want to make sure once I pay the customer for the equipment that it is mine free and clear but still waiting for a phone call back.

    So I figured I would put it out here to see if any of you have been in this position so I can get some answers. I don't want to buy the equipment and then have someone knocking on my door wanting to repo it.

    :thankyou:
     
    Tags:
  2. Billct2

    Billct2 Major Contributor

    7,468
    642
    113
    Mar 12, 2005
    New England
    Whenever I finished a lease and purchased the equipment I got it in writing from the lease company, make sure they have paid off the lease and have it in writing. Unless you are buying it and taking over the lease, then you need to make sure the leasing company signs off on the deal.
     
  3. Gino

    Gino Premium Subscriber

    33,365
    2,342
    113
    Jun 7, 2006
    PA
    I would call the 'Leasing Company' and ask them what the cost is to buy out. Some companies according to what and how much something costs, have different back-end deals. Some you must pay a penalty, while some give a cash cost.

    I got a piece of equipment this way a long time ago. Another shop skipped town on owing quite a few vendors money. I didn't know the story until after I bought it and I got a phone call. Seems he still owed about $4,000 on a $6,500 machine. I picked it up for $2,000. I was asked if I bought and paid for it and I said, yes I did. I have a bill of sale and a cancelled check. I can prove he is $2,000 richer and can pay towards HIS lease. They said, no problem...... he owes out about $268,000 and that little amount won;t mean a thing, It's yours, don't worry about it. We just now know he's still here operating and selling things which he doesn't own and is now committing more crimes.
     
  4. Techman

    Techman Major Contributor

    8,520
    8
    38
    Jun 24, 2003
    michigan
    It is the other guys responsibility. He made the lease. He has to pay it out.
    If he fails to pay it out it is his butt. They sue him.

    Why involve the leasing company. They cant tell you any thing anyway. If they do reveal it all they re violating the fair credit act.

    I bought out equipment on lease. I had no desire to talk to any one about any of it. IT was his job to pay them.
     
  5. James Burke

    James Burke Being a grandpa is more fun than working

    3,431
    461
    83
    Jan 2, 2010
    Mitten State
    Double check to see if there any other lein holders beyond the leasing company. That kinda stuff can get real ugly.


    JB
     
  6. rcook99

    rcook99 Very Active Member

    2,139
    3
    38
    May 25, 2006
    NE
    JB what is the best way to go about this. My thought is as long as I have a bank check made out to the leasing company for the total owed by the person I am buying it from I should be good. As this shows I paid that person and whatever she does is their probelm. I left a message with the leasing company but no return call today.
     
  7. James Burke

    James Burke Being a grandpa is more fun than working

    3,431
    461
    83
    Jan 2, 2010
    Mitten State
    Have the seller sign a statement indicating there are no other leinholders on the piece of equipment, and that they (the seller) will take responsibility to settle with creditors if any future issues should arise. Have it notarized.


    JB
     
  8. rcook99

    rcook99 Very Active Member

    2,139
    3
    38
    May 25, 2006
    NE
    Ok thanks for the explanation!
     
Loading...

Share This Page

 


Loading...