Can I sell my van in monthly payments and keep the title?

Question

my sister in-law wants to buy my van paying just $50.00 a week, but she wants to used the van. She must paid for the insurance if something happen before she finish to pay me? and the title is has to be under my name or on her name?

Answer 1

You can add her to your insurance and have her pay for it but keep in mind if you do that anything she does will reflect on your insurance rates. She may not be able to get insurance on the van since she dosent have a title for it,or you can have her make the payments like she said and sign the title over to her that way your clear if anything happens,but before you do that have papers drawn up legally that states that she HAS to make the payments or you are entitled to "repo" the van. Dont worry about hurting her feelings just cover yourself legally,if she dosent agree I wouldnt do the deal. Or tell her to get a loan for the amount you want and be done with it.

Answer 2

Yes you can hold a lien against the vehicle, there is a limit as to how many vehicles you can do this with in a years time. You must also write a separate agreement concerning the payment schedule or you will have no recourse if she defaults on the payment, the only thing is she will not be able to sell the van with out you releasing the title lien.

Answer 3

Have a sales contract (preferably notarized) that spells out each requirement, including  entitlement.  Usually title is kept in name of seller until all terms of contract are fulfilled. Be very sure to include precise insurance requirements, including who is responsble for the deductible(s).

Include specific conditions under which seller may repossess vehichle and what if anything must be paid to buyer in such case.