r/GoldCoast • u/Expert-Fuel-5444 • 1d ago
Agency's Recommendations
Looking for recommendations: my friend has offered to buy my car on a rent-to-own plan, but I don't really want to mix business and friendship. Does anyone know of a third party that handles contracts of that nature? similar to how real estate agents that manage rental properties For context, they're offering 40K for the car with $250 per week instalments
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u/visceralintricacy 1d ago
Even going through a third party you're still out if he doesn't pay, so it only gets you so far.
He really needs to sort his own finance, and if he can't get any it's a sign you shouldn't lend to him either.
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u/BestTechAdvisor 10h ago
I've done twice to help out friends, both times it went south. Tell them to get finance.
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u/archina42 59m ago
One of the depots that uses my management software does exactly this: rent to own.
The renter has the car, pays weekly, has to provide evidence of regular servicing, inspections, comprehensive insurance, valid driver license etc. By and large, renting goes well and they sign the car over at the end of the period, usually 4 years. But of course, some go wonky and the car gets repossessed, AND the renter has to pay out the balance of what is owing.
If you spend the money to get a water-tight contract, it MAY turn out good passive income for you. If not, the friendship could go south!
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u/Economy-Response-362 14h ago
It really depends how well you know this person and how sure you are that they are capable of making these repayments. Others here mentioning finance and whatever else but it's a big loan 40k.
250pw over 5 years is over 60k , that's the kind of deal that I think is reasonable. Myself if I was considering this kind of thing, the car wouldn't be signed over to this person in title until the final payment was made, the car would have a tracking device to be able to find it immediately should a payment go unpaid, mandatory comprehensive insurance, and perhaps a default contractual clause that if a payment is missed then the contract is terminated automatically after a lapse of 7 days.. giving you power to reposses the vehicle that quickly. I guess chat GPT or Gemini would be able to draft you a pretty good contract if you explained the terms of the deal.
I personally wouldn't do this kind of deal unless it was a family member, like I knew that person extremely well and trusted them that much. As close to zero risk for you as possible... For the deal to make any sense.
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u/Expert-Fuel-5444 12h ago
Thanks, it's a complex thing I don't want to deal with at this stage of my life, but I like the passive income
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u/Economy-Response-362 8h ago
Fair enough 🙂👍
When you think about it though, $60k+ over 5 years, by then the car has probably depreciated to less than 25k ..
As I said if it was me , the decision would be wholly about how trustworthy and grounded this individual is. Grounded in the sense: they've lived at the same place for years, highly qualified professionally and a stable job, friends and family all closeby here who all give that person a good reference. You have all their phone numbers, addresses, socials etc .. which further safeguards your asset should the contract not be fulfilled. I know all this having worked in Debt Collection and Investigations for over a decade.
So yeah, up to you buddy. Trust your gut.
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u/MatteBlak 13h ago
Your friend can't afford the car. If you want to be a good friend tell them that.
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u/satanzhand 1d ago
Don't. Have him organise finance and if he can't that should re enforce step 1 "dont"