Cheap cars

Auto note buyers purchase outstanding loan agreements from car dealers or independent financers. This allows the holder to receive a large amount of cash in the short term rather than have to wait for the car owner to send monthly payments.

There are a lot of people who need a car but do not have the cash or credit to purchase one. These people often turn to used car dealers who offer their own financing, to meet their needs. The car buyer will put a small amount down and make weekly or monthly payments. The total cost of the vehicle plus interest is paid out over a period of time. The length of time it takes to pay off these notes varies but it usually takes from 1 to 5 years. This leaves the car dealer with a lot of promises but very little cash.

Having a lot of paper promises doesn’t pay the bills or buy new inventory. What can a car dealer do if he finds himself in this position? He can turn to any number of auto note buyers to take this debt paper off his hands. In exchange for the right to collect on the loan agreements, the auto note buyer will give the used car dealer a lump sum cash payment.

With cash on hand the used car dealer can go about his business. He no longer has to worry about whether the car buyer will make good on his note: that is now the problem of the auto note buyer. The car dealer can use the money that he received to purchase new inventory or pay his business debt.

Some auto note buyers will give the car dealer the option of selling all or only a part of the note. A partial note sale is an agreement between the auto note buyer and the car dealer to sell the payments for only a specific length of time. Take for instance a debt that has 12 months remaining; the buyer purchases only the first 9 months of those payments leaving the remaining 3 to the car dealer.

To select the right person, a car dealer should: Contact a reputable auto note buyer. The easiest way is to go to a site that gives you access to a professional team of industry professionals. Check on their reputation. Ask about available options, miscellaneous fees and contract terms. As you are talking with the potential buyer, you will want to look for more than just the best deal. You will want to find the auto note buyer who will be the best match for your business. Pay attention to how well you communicate with each other. Is there a good rapport between you?

After an auto note buyer has been selected, it’s time to get down to business. Discuss your needs and figure out an arrangement that works for you. Draw up a contract that outlines each party’s responsibilities. Review contract terms with an attorney. Sign the agreement. Get your cash.

If you are a used car dealer with a lot of paper promises, and need cash now, consider selling your notes to any of a number of auto note buyers.