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

[rcook99]

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.

 

[Billct2]

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.

 

[Gino]

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.

 

[Techman]

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.

 

[James Burke]

Double check to see if there any other lein holders beyond the leasing company. That kinda stuff can get real ugly.


JB

 

[rcook99]

Double check to see if there any other lein holders beyond the leasing company. That kinda stuff can get real ugly.

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.

 

[James Burke]

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

 

[rcook99]

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

Ok thanks for the explanation!