Modern cars aren’t manufactured in a single facility. They are built from thousands of components from many different suppliers. While a vehicle manufacturer can control the actions and practices that take place in their own facility, it may not be possible to control the actions of some suppliers. This can be extremely difficult when components are manufactured overseas. Different countries may have minimal health and safety standards when manufacturing vehicle parts. This can introduce hazardous chemicals into a vehicle. It’s possible to find trace levels of mercury, lead, arsenic, and bisphenol A in some vehicles. Mostly in older vehicles, asbestos was used in different parts of the car like brake pads, gaskets, clutch linings, etc. Exposure to asbestos and these substances can be a serious hazard for both employees building these parts and drivers.

There are several steps that vehicle owners and their families can take to minimize their exposure to these toxins. One of the best ways to reduce one’s exposure to these toxins is by buying a used vehicle. Vehicles that are at least three years old will have lower levels of gaseous toxins.

It’s also important to roll down the windows on a vehicle before taking a drive. A warm vehicle without ventilation will accumulate dangerous levels of airborne toxins. A great way to minimize this buildup is by leaving a window in a car cracked. A one-inch crack in a window will help provide adequate ventilation to keep a vehicle safe for an individual and his or her family. It’s also important to avoid leaving any children or pets in a vehicle on a warm day.

Air conditioning systems can expose passengers to high levels of airborne toxins. Many air conditioning systems have a feature that allows air to recirculate through a vehicle. While this will reduce energy usage in hot and cold weather, it will increase one’s exposure to these dangerous chemicals. A great way to minimize one’s exposure is by using the vent setting on an air conditioning system.

It’s also important to pay attention to the origin of a vehicle. Most vehicles that are assembled in the United States or Japan meet rigorous safety standards. It’s less likely that vehicles from these countries will have components that are hazardous to one’s health. Vehicles from India, China, Mexico and South America may not meet the same health and safety standards. Always research any vehicle before making a purchase decision.

Bio:

Brian Turner has been working with the Mesothelioma Cancer Alliance as an environmental health and toxic substance safety advocate since June of 2007. Brian brings a tremendous amount of research and awareness experience in environmental health risks, environmental carcinogens, and green building expertise. Brian is very interested in all types of cars; his favorites are classic, muscle, and imports. Brian is commonly found playing and watching various sports with his friends.

Negotiate Price Of The Car Not The Payment

The first thing you do is negotiate the price of the car as opposed to your monthly payment. The reason is that the price on the sticker is not the price you should be paying. Even if you have to walk out of a couple dealerships to get your price, hold out for at least 500-1000 dollars less than sticker price. Your monthly payment is not going to equal the price of the car after interest and other fees are tacked on.

Don’t fall for extras like Gap Insurance and VIN etching that you don’t need. This will just add profit to the deal for the dealership. It is another reason why you should keep the purchase price and the payment negotiations separate.

Make Sure You Don’t End Up Owing More Than The Car Is Worth

The typical car loan is 60 months. You can stretch the loan out longer to reduce your monthly payment, but you may be paying more than the car is worth. The best thing to do is to pay off the car within 60 months even if you have to make extra payments to catch up. This will help you build equity faster and allow you to get more when you trade it in down the line.

Secure Financing Before You Shop

Go to your bank or credit union before going to the dealership. Often times you will get a better rate, and you know how much you can spend before you start shopping. This will help guide you to the car you can afford, and not to the car your dealer can make the most profit on.

When it comes to shopping for a car, you should understand how to get the best deal for you. Secure financing beforehand if possible, and never think that a lower monthly payment is always in your best interest. Knowing what you need and what you can afford will benefit you in the long run.

Bio: Sean is an expert in the automotive industry. Having been in the industry for over 20 years he helps people obtain cash for their cars. Furthermore, he also helps save the environment by offering junk car removal.

One confession first. The town I live in (North Judson, Indiana), is located midway between Chicago and Indianapolis. So, although it is a rural area with very few jobs, it is an excellent location for making money on Craigslist. It’s important to be close to two or more craigslist cities, unless you don’t mind a lot of traveling. But you can do this no matter where you live.

Another important point. You must be mechanically inclined for this job. You have to be knowledgeable enough to spot a value in a used car or truck. Knowing how to negotiate is another thing that helps.

OK, that said, here are the steps I use to make an extra $1000 or so each month. And it usually only takes me a few hours a week.

1. Study your nearby Craigslist cities, and determine which one has the most people with money. In my case, there are some rural areas near me, where people have very little money (like Kokomo, Indiana), and areas where people have more money (like Chicago).

2. Determine your budget. You don’t want to use the rent money to go out and buy another car you don’t need. Only use money that you can afford. In my case, that’s only about $500 per car.

3. Study the rural (or cheaper) area for a good deal on a used car or truck. I have found that most people who have owned a car for a long time will tell you all about it- what it needs, how dependable it is, etc. These lengthy descriptions show honesty in most cases.

4. Email them and ask more questions. Will the car make it to California? How much oil does it use? How are the tires?

5. Negotiate. Look at cars that are a little more expensive than your budget. In my case ($500), I’ll look at cars up to $800. If I find one that catches my eye, I’ll email them and explain that I am on a tight budget and only have $500.

6. Go check out the car. Make sure you look under the car for rusty floors, leaks, bent frames, etc. Check under the hood for rust, leaks, etc. Look and listen to the engine while it’s running. Take it for a drive and listen for clunks when braking and turning. Make sure the transmission shifts through all gears. Run it until it’s hot, and make sure it doesn’t overheat. Then, when you are satisfied, turn it off, and see if it starts again.

7. Offer less than the original price. Do it humbly. Explain your needy situation, and your dire need for transportation. Don’t try to get the price lower because it needs work, or simply offer less for no reason. Try to gain some sympathy.

8. Bring it home and clean it up. Sometimes just a little touch-up paint in a few strategic spots can make a huge difference. Or power wash the engine and remove all oil stains.

9. Take some good pictures and post your ad on the larger, more lucrative city area Craigslist. Be warned though- people will have your ad removed if it is out of the area. So, if you are out of the area, don’t put that in your title. Put it at the end of your description.

10. Be very descriptive about your vehicle, and tell the truth. Don’t try to hide something that’s wrong with the car. People can sense a liar. Be honest, and wish people success with their new (to them) car.

Notes:

Put your phone number in the ad. A lot of people shop Craigslist from their mobile phones, and many of them can simply click on a phone number to dial it.

Answer email promptly. Check it often, and again, be honest.

Shrug off lowballers. Every time I sell a car on Craigslist, I’ll get these emails- What’s the lowest you’ll take? I’ll give you $X. Etc. I always respond with my firm price.

Watch out for scammers. Never accept a check in the mail, even if it’s a certified check or a money order. These are scammers. Even if the check clears, it will be stopped at a later date.

Cash only!

Don’t drive the car. You never know if something else is wrong with the car, or if something is about to pop. Just don’t drive it until you sell it (or until someone comes to test drive it).

Good luck!

But what about the rest of it? Do they stand behind their vehicles? I’m going to get into all the particulars about my deal with them, and let you decide for yourself.

I bought quite a few cars in my life. I’m 51, and was a truck driver for about 30 years. Before that, I was a mechanic. So, if there’s one thing I know, it’s driving- cars and trucks. In fact, I started a website way back in 2000, about city driving safety. I wrote a regular column for Ten Four Magazine for ten years, and all my articles about city driving led me to be considered somewhat of an expert in a field which I created.

I had good credit for many years, before it went bad. And this is my second time attempting to rebound from some bad credit history. In 2004, I decided to live without credit. I let a few credit cards destroy me. The debt was too much for me. So I moved into a cheaper house and tried to cut some corners. I had a big idea that I could live debt-free, without any credit, ever.

Well, that was easy at the time, since I already had two nice vehicles (a car and a truck), and a job. But as the years went by, those vehicles fell apart, and I found myself driving junks for the first time since I was a young man.

Then, in 2010, I hurt my back (five herniated disks), and could no longer work. After struggling through a long recovery period (I’m still bad off, but at least I can walk around pain-free now, thanks to Jesus), I could no longer work on my junky car. I had to have a better one. I decided that I did after all need some credit. So much for living debt-free.

I searched the internet for some easy financing, but they all wanted me to have a job, and some credit references. I had neither. In fact, I stopped at a Buick dealer and when they ran my credit report, the salesman told me he had never seen a credit score of zero before. That was weird, I was a zero.

Then I went to Economy Auto in Knox.

All I had was $300 to put down, and the only reason I had that was because I scrapped my old truck. So I was really surprised when they agreed to finance me.

I carefully went over my budget and concluded that I could (barely) afford a $300 a month car payment. I explained that to them and they let me choose from several nice cars and trucks.

Whenever I buy a used car on credit, I’m always a little nervous because you never really know if the engine is going to blow next week or something else major.

As we wrote the deal, I was pleasantly surprised by a few things. They give you a seven-day 100% guarantee on any repairs. So if anything blows in the first week, they’ll fix it. Then, after that, they give you a 6-month, 7500-mile 50/50 warranty on just about everything. Well, that was a major relief.

Then, they went a step further and told me about certain ways I could get my car payments paid! If I refer anyone I get a free car payment. If I pay on time, every month I am entered in a monthly drawing for a free car payment, or maybe my entire loan paid off! And, every once in a while they have a picnic, where they draw some lucky car owners name and pay the whole loan off! I’ll be at the picnic for sure! If you wind up buying a car from them, meet me at the picnic.

Six months from then (after my warranty ends), I’ll be nervous again about something major blowing. But you know what? It’s OK, because they do their own repairs on-site. So if anything does blow, I’m going to bring it to them to fix. They will just add the bill to my payments. How sweet is that?

You might be wondering by now- do I have anything bad to say about them? The only complaint I have is that they do overprice the cars a bit. But you expect that when financing. The good news is, I’ll have it paid off in two and a half years. And if I’m never late on a payment my credit will be good by then and I can choose to buy my next vehicle anywhere I want to.

My final conclusion is this- Economy Auto in Knox is a great place to buy a car! Here is there website.

Make sure you tell them Ken Skaggs sent you.

If you want to ask me anything, email me at me@kenskaggs.com. I will always tell you the truth. Remember, I am just a regular guy like you. I won’t steer you wrong. I’m an old-school truck driver, who likes to talk to other drivers and help each other stay informed.

By the way, they have an A+ rating from the Better Business Bureau.

Here are ten of the best safety additions, some of which are obvious while some are worth considering as an optional extra.

1. Seat Belts. It seems incredible to believe that the use of seat belts was optional in most countries until relatively recently. Those that can remember will recall the horrific images of facial disfigurement suffered by drivers and passengers that had been thrown through a windscreen. Deaths weren’t uncommon either and if you’re tempted to leave your seat belt off even for the briefest of trips, the advice is simply ‘don’t’.

2. Air Bags. Death or disfigurement also became evident for drivers who were forced into the frame of their steering wheel at speed. The first commercial air bags were on trial in the 1970s but they didn’t take off until around 20 years later. These days, the majority of vehicles are fitted with air bags as standard.

3. Hands Free and Blue Tooth. The law prohibiting cell phone usage while driving is there for a reason. Distraction causes accidents and the fitting of a hands free kit or the use of Blue Tooth is a very underrated safety device.

4. Child Seats. Once again, it seems impossible to believe that until recently, young children had no car seats and young babies would even travel on their parent’s lap. The introduction of the child seat has been a major landmark in accident prevention.

5. Fire Extinguisher. Vehicle fires are becoming increasingly common but having a fire extinguisher handy can save lives as well as protecting your vehicle and its contents.

6. Smoke Detectors. This is another, less common safety device that will doubtless become more popular in cars as the years progress. In the same way that smoke detectors in a home will give you advance warning of any issues, these devices will warn you and give you time to deal with the problem and get out of the car if necessary.

7. Blind Spot Mirrors. Many accidents are still caused by cars pulling out in front of oncoming vehicles simply because they are in their ‘blind spot’. The ingenious blind spot devices are placed on your side mirrors and they amplify the area to your side and decrease the chances of you failing to spot oncoming traffic.

8. Parking Sensors. The introduction of parking sensors to many modern vehicles is designed really to avoid minor accidents at low speed. However, any such collision can cause injury so the parking sensor shouldn’t be underestimated as a car safety device.

9. Volvo City Safety. This is a new development that has won awards for Volvo and it is hoped that it will be introduced as standard on many cars soon. Essentially, the car assesses vehicles ahead of it and if it ‘senses’ the driver hasn’t reacted and a collision is imminent, it will apply the brakes.

10. Anti Lock Brakes. The arrival of anti lock braking was another major benefit for road safety. Whereas a driver may brake suddenly and skid into the path of another vehicle when their brakes are locked, this device eradicates that possibility.

Most of the delivery trucks the company had, which were step-vans, were in pretty bad shape. Oh, they had a few newer ones, but most of them were the kind of vehicle that you fill the oil and check the gas, if you know what I mean. They had several trucks with bungee cords holding the back doors closed because the hinges and door-frames were so rusted out. Many of them had so much rust that you’d have to stuff a rag into a hole or two just to stay warm in the winter.

Almost every morning, we’d see drivers filling fluids, changing tires or putting duct tape and bungee cords on everything. Many drivers had dirty hands before they made a single delivery.

The funny thing was, we had a mechanic. He was the highest paid employee too. He could often be seen sitting and smoking or reading the paper. I guess he figured that all of the easy stuff was the responsibility of the driver. And he always had plenty of duct tape when we needed it. And when it was something that we couldn’t figure out, he would huff and puff and get up to fix it. But he was always so grouchy that we hated to ask him for anything. I guess you can say that he had us trained to suit his work ethic (or lack there of).

Driving a beat up car was nothing new to me, so I really didn’t think much of it at the time. At that point in my life, I had never spent more than a few hundred dollars on a car. So, filling the fluids and tightening the clothes hangers was something I always had to do on a daily basis anyway. I think it was this happy-go-lucky attitude that got me promoted to supervisor in the first place.

Well, one day we hired a driver named Paul who turned out to be a life-long friend of mine. But the funny thing about Paul was, he never drove a beater before in his life. He never had to check oil because he always drove new cars. I had to teach him what I called “Beater Control.” I did all of the hiring and training of new drivers, so beater control became part of my training program.

Paul was a high maintenance employee. Every morning he would come into the office laughing with a complaint about his truck, as if it were some kind of a joke (which it was). One day, his heater only blew on his right foot, so I helped him move the hose and tape it into a more central location, where it would blow on both feet equally. He would have never thought of that on his own. The next day he would tell me that his power steering didn’t work and I would literally have to show him how to check and fill power steering fluid. He actually learned to like it because, like I said, he knew nothing about fixing cars but was now learning a little beater control.

There were certain neighborhoods that we delivered to that had a lot of kids around, which brought along other challenges. Any time it snowed, there would always be kids grabbing onto the back of the truck and “skitching” a ride. It was company policy to get out and chase them off, but sometimes you wouldn’t know they were back there. I guess we were an easy target for them because we were stopping every half block or so, as we putted through their residential neighborhoods to make deliveries. Plus, those step-vans had a big step on the back and door handles to hold onto. Every driver had a story about a kid who held on for a long ride and got taken too far from home, or one who grabbed a handle and pulled a door completely off.

One day, one of them opened my back door and an avalanche of dirty diaper bags fell out and left a trail throughout the neighborhood. By the time I noticed the trail behind me, it was over a block long.

Needless to say, it took me a while to go back and pick them up. And, of course, some of the bags were busted so it became hazardous duty and rubber gloves were required.

Since then, thankfully, I’ve learned to spend a little more on my cars and to be a little more selective as to what I drive in general. When I started driving big trucks, I quickly learned to be a little more safety conscience. Duct tape and bungee cords just didn’t cut it when it came to a big truck, although I can think of a few companies who would argue that. Duct tape and bungee cords are no laughing matter, no matter how small your vehicle is. But, let’s face it, sometimes we just have to get by with what we have, not what we wish we had.

I can look back on those days and laugh now. But the truth is, I am very lucky to have gotten through it without an accident and so is the diaper service company mentioned above. In defense of them, however, I would like to add that it really is amazing what you can do with duct tape, bungee cords and wire clothes hangers. Those three things can offer a temporary fix when you are far from a real repair shop. They have really saved me a time or two. I still carry them with me because you never know when you might have to tape a hose together, or tie up a dragging exhaust pipe or drive shaft or something. Ah, the joys of beater control.

Buying and Selling

Used Vehicles

INDEX

INTRODUCTION

A. Steps 1 Where to Find The Vehicle of Your Choice

2. Making the Initial Contact (Common Questions and Answers Included in Steps)

3. The Face to Face Presentation

4. Closing the Deal

5. Paperwork and Insurance

B. Definitions

C. Suggested “Assignment Agreement”

D. Telephone Information Sheet

E. Assignor/Assignee Responsibilities

Power of Attorney

Application Information

Personal Reference Form

Uniform Commercial Code, Article 9, Section 311

INTRODUCTION

THE CONCEPT:

PROBLEM: (A) A person has a car he no longer can afford. May be about to be repossessed.

PROBLEM: (B) Another person has a “Bad Credit” history and cannot buy a car, but can well afford to make the payment on a recent model vehicle.

SIMPLE SOLUTION: (C) Put these two people together. Person (B) will assume person (A)’s payments and insurance.

NEW COMPANIES EMERGED

A few years ago an industry emerged that served the needs of individuals who have had past credit problems, but can now afford monthly car payments. These COMPANIES helped people with

PAST CREDIT PROBLEMS SUCH AS:

Bankruptcy

Repossession

Judgments

Divorce

Medical Bills

No Past Credit History

Late Payments

Many Other Problems

These problems are held against these individuals by lending institutions for up to seven years.

WHAT THESE COMPANIES DO:

These companies would find vehicle owners who can no longer afford their monthly payments. These owners would gladly allow someone to take over payments on their vehicle in order to save their credit, with NO CREDIT CHECK.

SAVE $1,500/$3,000:

These companies charge the Buyer/Assignee between $1,500.00 and $3,000.00 for their services just to put these two parties together, WITHOUT DOING A CREDIT CHECK.

THIS INFORMATION PACKAGE gives you all THE SIMPLE SECRETS on how these companies perform their services. You can SAVE the $1,500.00 to $3,000.00 fee that they would typically charge.

PERSISTENCE:

With your PERSISTENCE and this INFORMATION PACKAGE, you can get the recent model vehicle (1993-1995) THAT YOU WANT, without paying any FEES or DOWN PAYMENT.

(NOTE: This information will not assist you in going to a new or used car dealership to get a car. This information is intended to target individuals wishing to sell their vehicles to an individual buyer, ONE ON ONE.)

WHAT ARE SOME OF THE SELLER S DIFFICULTIES:

Ideally, these sellers would like to sell their vehicle for the bank payoff amount. Several factors may be preventing them from doing this:

A. They have high mileage.

B. They are unable to show their vehicle to a prospective buyer (because of work, school or other conflicting situations).

C. They are in an area experiencing a soft used car market.

D. They put very little money down when they bought car and still owe more than the book value amount indicated.

E. They financed their car for a long period of time (60 – 72 months) and have not built enough equity in the vehicle.

F. BUT, THE BIGGEST REASON IS; they cannot sell their vehicle because they simply OWE MORE ON THE VEHICLE THAN THE VEHICLE IS WORTH.

WHAT ARE THE OWNER S CHOICES:

Traditionally the owners choices are EXTREMELY LIMITED:

PAY THOUSANDS OF DOLLARS -

A. THEY can sell their car for market value, then pay the lien holder the difference of what they owe, IN CASH. This could cost the owner several thousands of dollars up front, or -REPOSSESSION-

B. THEIR second choice, which has recently gained in

popularity, is letting the car go back to the lien holder (REPOSSESSION).

(If the dreaded REPOSSESSION choice is used, the owner will seriously DAMAGE CREDIT for SEVEN YEARS.)

YOU AND THE OWNER CAN HELP EACH OTHER You help them by taking over their monthly obligations (car payments and insurance), and the owner helps you by putting you into a recent model (1993-1995) vehicle. You both help the lien holder because you will be making the payments on time and the lien holder will not have to take a big loss on the vehicle by REPOSSESSING it.

SUGGESTED ASSIGNMENT AGREEMENT

The Suggested Assignment Agreement included in this information package is a SUGGESTED AGREEMENT ONLY. There may be provisions added or deleted to the agreement between you and the assignor (owner) to make the transaction acceptable to you both, but REMEMBER, IT IS INTENDED FOR YOU TO USE AS A GUIDELINE ONLY. The ASSIGNMENT AGREEMENT IS BETWEEN YOU AND THE OWNER OF THE VEHICLE. THE VEHICLE REMAINS TITLED IN THE OWNER S NAME UNTIL ALL PAYMENTS ARE MADE AND THE ORIGINAL LOAN IS PAID OFF. At this time, according to your Assignment Agreement with the owner, they have to sign the title over to you within thirty (30) days after the car is paid off.

LIEN HOLDER PURCHASE AGREEMENT

This type of transaction is very common with Real Estate. Typically, the owner of a house will rent their property and still be solely responsible for the monthly mortgage payments. The payments are being made even though the owner is not living in the house. The renter has a contract between them and the owner, not involving the mortgage company YOUR SUCCESS IS GUARANTEED

Some purchase agreements from the lien holders may have provisions against subleasing or assignments , claiming it would be a default-of contract. Many disregard this provision and do not contact the lien holder for their approval, claiming that as long as the payments, insurance and vehicle maintenance were maintained, the assignment of the vehicle would fulfill the lien holder s requirements, and it would not be necessary to inform the lien holder of the transaction.

We recommend that you contact the leader in writing to inform them about your agreement.

YOUR SUCCESS IS GUARANTEED

Using this system, an individual can obtain a vehicle on merits such as character and ability to pay, rather than credit history. There are NO TURN DOWNS . Everyone qualifies because A CREDIT CHECK IS NEVER RUN. YOUR SUCCESS IS GUARANTEED.

REMEMBER, you must be PERSISTENT, make several calls, and always project a good image over the telephone and in IT IS NOT OUR INTENT TO GIVE LEGAL ADVICE:

This information is not intended for purchasing a vehicle from a new or used automobile dealership. It is not our intent to give legal advice. Each state has different laws. If you have any questions pertaining to State or Local requirements, contact your State Department of Motor Vehicles or your attorney.

UPSIDE DOWN OR NEGATIVE EQUITY:

Let us take this opportunity to explain what is meant by Upside Down or Negative Equity.

Let s use the following as an example: Say the owner of a car owes $12,000 to the bank for the PAYOFF of his car. The AVERAGE RETAIL VALUE of the car (what a car lot would sell the vehicle for) is only $10,000. If the vehicle is selling at a car lot for $10,000. few people would be willing to pay them the $12,000 that they owe. The LOAN VALUE on this car (what the bank will loan someone with good credit) may be only $8,000. This means that if a person with good credit wanted to buy this car for $12,000, they would have to borrow $8,000 from the bank and would have to come up with another $4,000 in cash to satisfy the lien holder.

EXAMPLE:

Payoff to Lien Holder $12,000

Average Loan Value $ 8000

Average Retail $10,000

Difference (in cash) $2,000

or negative equity

The seller will have a difficult time finding someone who is willing and able to put $4,000 in cash down for a used car. A buyer with good credit can o to a dealership and get a new vehicle with only a few hundred dollars down. So, the chances of the owner selling the car to a person with good credit are very slim.

By explaining (Upside Down, Negative Equity) to the owner, you will let them know why they are having problems selling the car and that they may only have three (3) options left at the point. Those options are:

Option #1 Sell the car for market value of $10,000 and pay the bank $2,000 out of their own pocket.

Option #2 Turn the car back to the lien holder for REPOSSESSION and NOT pay the lien holder the difference of $2,000. This option will ruin the credit status of the owner for seven (7) years.

Option #3 Or they can let you assume their responsibilities of payments and insurance, save their credit status and not have to pay the negative equity of $2,000.

THE STEPS

LISTED ARE THE “FIVE (5)STEPS” YOU WILL NEED TO FOLLOW CLOSELY

STEP 1

WHERE TO FIND THE VEHICLE OF YOUR CHOICE

Auto want ads in your local newspaper, auto trader advertising magazines, or any other publications that list vehicles for sale.

(NOTE: Finding an individual who is upside down or in a negative equity situation on their vehicle loan is easy. Most cars within their first three years of their finance contract are in this situation. YOU MAY EVEN HAVE A FRIEND OR FAMILY MEMBER IN THIS SITUATION. IT GOES WITHOUT SAYING THAT A FRIEND OR FAMILY MEMBER WOULD BE IDEAL UNDER THESE CIRCUMSTANCES).

NADA BOOK (NATIONAL AUTOMOBILE DEALERS ASSOCIATION)

Your local library will carry a NADA book. This book will give you the average retail price of any particular car model. The NADA book is published monthly. It also gives you the amount that most banks will finance on those models. If the payoff amount on a car is more than the NADA retail book value, then you will know this seller is in an UPSIDE DOWN position and will be very interested in talking to you.

THE EASIEST PEOPLE TO WORK WITH:

The easiest owner to work with is one who is considering letting their car go back to the lien holder for REPOSSESSION. You can find these owners in your local newspaper or local car magazine. Best results arc obtained in aging these issues for two or three weeks

before calling. The owners will always become more flexible the longer they try to sell their vehicles. If you focus on ads proclaiming Take over payments or Down and take over payments . These are individuals who realize that they are in a NEGATIVE EQUITY SITUATION and can t sell their vehicle outright. Even though their ad requests a down payment, they will almost always wave it.

Most lenders who recommend to the seller, that they find someone to take over their payments, will still hold this individual liable for the payments if there is a default. Many of these lenders will request an application to be submitted from the assignee.

If the seller (assignor) has been making their payments on time, the lien holder may want to keep them in this vehicle. They will want the assignee to have a stronger credit rating than the assignor, before they will give their approval at all.

Traditionally, the COMPANIES mentioned earlier do not even contact or go through the lien holder. Claiming that whether an application is submitted or not, the assignor still remains liable for the payments.

This arrangement allows the owner to monitor their own payments so they are actually more secure, as is the lien holder.

The companies contend that under the Uniform Commercial Code, Article 9. Section 311, that the owner of a vehicle has the right to assign their property regardless of provisions in the original purchase contract by the lien holder, that might claim such a transaction to be in default. The lender will always hold the original owner primarily liable for payments. Even though the payments are submitted by the assignee, the lender will still acknowledge the assignor/owner as the driver and owner of the vehicle. The reason being, the assignment agreement is between the assignee/buyer and assignor/owner, and not the assignee/buyer and the lender.

STEP 2

MAKING THE INITIAL CONTACT

When you have identified several cars that you have an interest in, you are ready to make the INITIAL CONTACT with the owner. Throughout this conversation your goal will be to find out if the owner is in a NEGATIVE EQUITY POSITION (or upside down) on their vehicle. Best results are obtained if the owner is just asking for what they owe on the car.

A TYPICAL PHONE CONVERSATION MAY GO AS FOLLOWS:

Caller: Hello, I m calling about the car you have advertised in the paper. Is it still for sale?

Owner: Yes, it s still for sale.

Caller: Can you tell me about it, what color,

mileage, options, etc. , (reference TELEPHONE INFORMATION SHEET).

Are there any nicks or scratches?

Owner: (The owner will normally give you all the information, except for the price of the vehicle.)

Caller: How much are you asking for the car?.

Owner: $12,188.00

Caller: Is that what you owe on it?

Owner: (Answer) Yes or No

Caller: (If the answer is Yes , ask how long have you been trying to sell the car) The reason I m asking these questions is because I would like to take over the payments on this type of car . How much are your monthly payments? (Try to get a feel for how badly they want to get out of their car. If this vehicle sounds appealing to you, and you sense the owner is flexible, set up an appointment to look at the car).

(If the answer is No , the owner may have put a large down payment on the car, and it may not be in a NEGATIVE EQUITY SITUATION , or they may not owe anything on the vehicle at all.

BE PERSISTENT:

You will typically have to make twenty or more phone calls to find a vehicle owner willing to assign their vehicle. One very important thing to remember, BE PERSISTENT , keep calling. There are thousands of desperate people needing to get out of their vehicles in every area of the country. It s also a good idea to call the owner back a week or so after your first contact. The longer they see that they can t sell their vehicle, the more eager they will be to work with you.

STEP 3

THE FACE TO FACE PRESENTATION

The owner will normally want the car out of their name. Their credit is riding on you making their payments. You will need to show them that they are secure and protected in dealing with you. When meeting face to face, it is extremely important that you present yourself in a professional manner. Treat this meeting as you would a job interview. This person is essentially giving their approval of you to assume his $12,000.00 to $17,000.00 investment. Look Sharp .

Once you have seen their car and feel that it is what you want, you are ready to make a proposal. Explain to the owner that you earn a more than enough income to afford this car payment, but you cannot get financing from a bank, because of some credit problems that you hand in the past. Tell them STRENGTHS about yourself that shows your stability and credibility such as:

LENGTH OF RESIDENCE IN YOUR HOUSE OR AREA

LENGTH OF CURRENT EMPLOYMENT

JOB DESCRIPTION OR JOB TITLE

HOME OWNERSHIP IF APPLICABLE

THE REASON FOR YOUR CREDIT PROBLEM

IF YOU PAID BACK PAST CREDITORS

WHAT YOUR INCOME LEVEL IS WITH BONUSES, FUTURE PAY RAISES OR POSSIBLY A JOB PROMOTION

Describe what makes you a good risk. Let the owner know that you are building their equity in this vehicle, until you pay it off. The more payments you make, the less will be owed on it. Give them a copy of the enclosed credit report, personal references and a copy of your driver s license. Allow them to verify your employment and that you make you rent or mortgage payments on time. Show them a copy of the suggested Assignment Agreement.

COMMON QUESTIONS ASKED BY THE OWNER OR ASSIGNOR AND ANSWERS TO THOSE QUESTIONS:

Question: What if you wreck the car?

Answer:

The insurance company will issue a check with both your name and the lien holder s name on it. This check will be applied towards repairing the vehicle.

Question:

What if you get a ticket while driving this car?

Answer:

Any points are charged to my individual driver s license, not to the car.

Question: What if you hit someone?

Answer:

The Suggested Assignment Contract states that I am driving the vehicle, and am responsible for all liabilities. Your liability is limited because I will carry 100/300/50 liability coverage or whatever your Purchase Agreement with the lien holder requires, which will protect you. As the owner of this car, you are put in the same position as an independent leasing company or car rental agency. You own the car, but your not driving it.

Question: How do I know that you’ll make these payments?

Answer: You’ll receive a cashier s check or money order made out to the lien holder at least ten days before your due date. If I m late, you have the legal right to take the vehicle back, believe me I don t want to lose it. The agreement basically states that I will make the remaining payments or pay it off early, as long as I do this you are under contract to sign over the title to me. Nothing hidden, no surprises, it s just fair and legally binding.

Question: Why do my tags stay on?

Answer: You are still the legal owner, just as leasing companies and rental agencies are. I am the one who is primarily liable for what happens while it s in my possession.

Question: What if you move and cannot be located?

Answer: You have a list of personal references, my driver s license number and my social security number, any repossession firm could track the car in a matter of hours. I can understand your concern, but let me assure you that I have no intention of going to jail for car theft.

STEP 4

CLOSING THE DEAL

Once you have satisfied all the owner s questions, and have subdued all fears., you need to get a commitment. If the owner will not commit and wants to think about it, find out when the due date is for the next payment. The closer they get to the next payment, the more flexible they will become. If the owner remains undecided, you may try offering them concessions. You could offer to make a whole payment or two payments in advance. They may request some kind of security deposit, which would be held for damages. At this point, be creative and willing to empathize with the owner s concerns.

STEP 5

PAPERWORK & INSURANCE

LIMITED POWER OF ATTORNEY This form needs to be signed by Assignor and notarized by a Notary Public. It gives the Assignee the authorization to sign on behalf of Assignor in matters concerning the vehicle. (To be attached to registration)

SUGGESTED ASSIGNMENT AGREEMENT The provisions recommended in this agreement are meant to protect both parties. Individual concerns not covered, they can be added while others can be deleted. This agreement is only meant to be a guideline for constructing your own finalized contract.

CREDIT INFORMATION SHEET The Assignor will need some information on the Assignee just for his protection.. If the Assignee does not make payments, Assignor will be able to rum this information over to a repossession firm on the Assignee just for his protection. If the Assignee does not make payment, Assignor will be able to turn this information over to a repossession firm to retrieve the vehicle.

INSURANCE Insurance regulations differ widely from state to state. The simplest and most widely accepted structure for this arrangement is as follows:

List the owner as primary insured and assignee as additional insured. The loss payee will always be the lien holder. The policy address can be that of the assignor or assignee.

Insurance can remain on the existing owner s policy by just adding the assignee as an additional insured. The owner may prefer to set up a new policy so that the assignee s driving record will not affect the rates that they pay for their other vehicles.

Recommended liability limits of 100,000/300,000/50,000

(100,00 maximum limit of liability per persons, 300,000

maximum limit liability for all persons per accident, 50,000 maximum limit of liability per accident for property damage). These higher liability limits normally will account for a minor increase in rates.

If the assignor has a poor driving record, that would make your insurance premiums prohibitive, you do have some options. Some insurance companies will allow you list the Assignee as Primary Insured and the Assignor as Non-Driving additional insured. They will treat the policy just like a normal lease. In the place of the leasing company, they will insert the name of the Assignor. The Loss Payee remains the bank or lien holder. Let the insurance company know that you have the Power of Attorney for this vehicle.

If this is the direction that is most economical for you, then you may want to find a creative, knowledgeable agent, (this is not always easy). Many agents may reject your policy without fully understanding the relationship or legality of it. We recommend talking directly to the underwriters if the agent does not seem knowledgeable. If you do set up your policy in this manner, then you may want to contact the Department of Motor Vehicles in order to see if a lease tag can be issued in your name without changing the title.

REGISTRATION PROCESS

Each state has different systems. We have found that the most common is as follows:

Register Vehicle in Assignor s name in care of Assignee s name and address. Keep Limited Power of Attorney with registration. In most states, LIMITED POWER OF ATTORNEY along with the ASSIGNMENT CONTRACT is sufficient to register a vehicle. REGISTRATION AND LICENSE PLATE are to remain in Assignor s name, (normally leave the same license plate on the vehicle.

TAXES

Assignor will receive all property taxes on vehicle and then forward to the assignee.

DEFINITIONS

ASSIGNOR person who has vehicle for sale or wants to be relieved of monthly payments and insurance.

ASSIGNEE person who wishes to assume assignor s responsibilities of payments and insurance.

ASSIGNMENT AGREEMENT agreement between assignor and assignee

UPSIDE DOWN VEHICLE a vehicle in which the pay off is greater than the book or loan value of the vehicle. (also referred to as negative equity).

LIEN HOLDER the lending institution who financed the vehicle for the assignor.

PURCHASE AGREEMENT purchase contract between lien holder and assignor signed at time of purchase of vehicle.

LESSOR a person leasing an item to another person.

LESSEE a person leasing an item from another person.

ODOMETER mileage indicator stating exact mileage on a vehicle.

ODOMETER DISCLOSURE STATEMENT a Federal and State Law requirement that you state the mileage of a vehicle upon transfer of ownership.

NEW COMPANIES a company that finds a vehicle owner, that must relinquish their vehicle because it is close to repossession, and then finds a third party to assume the vehicle owner s responsibilities of payments, insurance and maintenance.

NADA BOOK (National automobile Dealers Association) a monthly publication found in most libraries, that list average retail selling prices and bank loan values of late model.

SUGGESTED ASSIGNMENT AGREEMENT

This agreement is made and entered into the date indicated below by and between______________________(assignee) and ______________________________________ (assignor). Whereas the assignor holds legal title or interest to the vehicle described below and has same finance with ________________________________________ (lender) having agreed to pay lender $___________________________ (monthly) for another ______________________________ months (note payments) with a residual amount of _________________________________________ (if a lease).

Whereas, the assignor is desirous of assigning or selling the vehicle and assignee is desirous of accepting assignment and/or buying the vehicle.

In consideration of the mutual covenants hereinafter made and for other good and valuable consideration the sufficiency and receipt of. which is hereby acknowledged, the parties agree as follows:

1. Assignor agrees to assign the vehicle to assignee/buyer for the term of the assignors note payments due his lender. and hereby authorizes assignee/buyer to drive same, but only for so long as assignee/buyer is current in the assignment payments set out below in paragraph two (2). The vehicle cannot be taken out of the state without written approval from the assignor.

2. Assignee/buyer agrees to pay as assignment payments for such vehicle, the monthly amount of assignor s note payments to Lender, and to pay same by cashier s check or money order made payable to lender and to mail such payment to assignor at least ten (10) days before the ______________ day of each month beginning on the ___________________________________________ 199__. Any late payments shall be in default of the agreement.

3. Assignee/buyer agrees to take out and maintain insurance on the vehicle satisfactory to assignors lender and to name assignor as primary insured. assignee as additional insured and lender as loss payee. assignee/buyer further agrees and does hereby indemnify and hold assignor harmless from any damage or liability arising out of assignee/buyers use of assigned vehicle.

4. Assignee/buyer understands and agrees that should he/she fail to timely pay any of the assignment payments called for above or allow the aforesaid insurance to lapse or should assignors lender declare a default under its note or loan agreement or deem such loan repayment or the collateral to be insecure, this assignment/Purchase agreement shall terminate at once, assignee/buyer shall no longer be deemed to be an authorized driver of the vehicle. and assignee/ buyer agrees to return the vehicle to the assignor or. his agent immediately. Failure to do so shall result in the immediate repossession of the vehicle by assignor. its agent or the lender or its agent.

5. Assignee/buyer shall have the option to purchase the vehicle upon (a) its full and timely compliance with this agreement and (b) the payment of all note payments to lender. Thereupon, assignor will deliver to assignee/buyer the vehicle s certificate of title. Default under this assignment by assignee/buyer or other authorized termination of this agreement shall forfeit any option to purchase the vehicle that assignee/buyer may otherwise have had. Upon full compliance and satisfaction of the lien, assignor will have 30 days to deliver title to assignee.

6. Normally, legal title to the vehicle shall at all times prior to assignee/buyers proper exercise of his/her purchase option described above remain in assignor s name and possession if applicable.

7. During the term of this agreement, assignee/buyer agrees to maintain the vehicle in good repair and full operation condition. Any failure to do so shall be grounds for termination of this assignment/purchase agreement and assignee/buyer shall be personally liable to owner for the cost and expense of any repair deferred maintenance other than for normal use and wear and tear.

8. upon a 48 hour notice to the assignee/buyer, assignor has the right to inspect the vehicle at a location of his choice, no more than once a month.

9. Any additional or special provisions applying only to this agreement are written as follows:

10. This constitutes entire contract. This assignment agreement including any addendum’s or exhibits hereto which are by this reference made a part hereof, contains the entire agreement relating to the assignment of the vehicle and shall bind and insure to the benefit of all respective heirs, personal representative, successors and assigns of the parties hereto except as hereinabove expressly limited. Any oral representation or modifications of this assignment agreement shall be of no force and effect, excepting modification in signed by the party to be charged. No delay or forbearance of assignor in the exercise of any remedy or right will constitute a waiver thereof and the failure to exercise or a partial exercise of a remedy or right shall not preclude a subsequent or the further exercise of the same or any other right or remedy by assignor. Assignor shall have no liability for any delay in delivery of the vehicle for any reason beyond the control of assignor.

In witness whereof, the parties have executed this agreement as of the ________________________day of __________________199__, at

__________________________________________ _____________________________________________

Assignee/Buyer Signature Assignor/Seller Signature

Print Name and Address Print Name and Address

__________________________________________ _____________________________________________

__________________________________________ _____________________________________________

__________________________________________ _____________________________________________

Date ______________________________________ Date__________________________________________

Telephone Information Sheet (Questions you should ask when calling about a vehicle.)

Date:

Owner s Name:

Make of Car:

Year:

Color:

Mileage:

Condition:

5 Speed Transmission: Automatic Transmission:

Monthly Payments:

Number of Payments Remaining:

Full Pay Off Amount:

Are Payments Current:

Address Where Car Is Located:

Owner s Phone Number:

Comments:

NOTE: When making phone calls, use a note pad to write down the above questions, record the seller s answers accordingly.

ASSIGNEE S RESPONSIBILITIES (Assignee- person who wishes to assume assignor s responsibilities of vehicle payments and insurance)

1. Make payments to assignor, by money order, cash or bank draft made out to lien holder/lender and forward to assignor 10 days before due date. (NOTE: Put account number on money order or bank draft. Assignor will promptly forward this in to lien holder in order to maintain his credit status.)

2. Provide copy of insurance, naming assignor as primary insured, assignee as additional insured and lien holder as loss, payee.

3. Notify assignor of any change of address.

4. Provide assignor with credit application (included in this information package) and at least eight (8} personal references.

5. Provide assignor with original assignment agreement.

6. Receive all manuals, warranties and other information pertaining to the vehicle. Keep warranty in the name of assignor

7. It will be the assignee s responsibility to pay for and keep current the collision and liability insurance, property tax, inspections, permits, and other taxes or fees pertaining to the vehicle.

8. Maintain the vehicle in excellent working condition as described in the owner s manual.

POWER OF ATTORNEY

KNOW ALL MEN BY THESE PRESENTS. That the undersigned of the County of State of being the Registered Owner of the above ,described motor vehicle. does hereby make, constitute and appoint of ________________County. State of true and lawful attorney in fact to sign in the name, place and stead of the undersigned, any Certificate of Ownership issued by the Department of Motor Vehicles o! the State. covering the motor vehicle described above in whatever manner necessary to transfer any registration of said motor vehicle. Granting and giving unto said attorney in fact. full authority and power to do and perform any and all other acts necessary or incident to the execution of the powers herein expressly granted with power to do and perform a acts authorized hereby. as fully to all intents and purposes as the grantor might, or could do if personally present, with full power of substitution.

IN TESTIMONY WHEREOF. the undersigned has___________________________hereunto

set ________________________ hand___________ this _____________ day of _____________,19___

(PLACE NOTARY SEAL HERE)

X _______________________________ Subscribed and sworn to before me

X _______________________________ this _____________day of _______________19________

Witness:

Address:

Notary Public in and for the County of State of

UNIFORM COMMERCIAL CODE

9 311. Alienability of Debtor s Rights: Judicial Process

The debtor s rights in collateral may be voluntarily or involuntarily transferred (by way of sale. creation of a security interest. attachment, levy, garnishment or other Judicial process) notwithstanding a provision in the security agreement prohibiting any transfer or making the transfer constitute a default.

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