Buying a used ATV that has a factory loan

[Carpenter]

Looking at purchasing a used wheeler but it has some portion of the original loan (they bought it new) thru the manufacturer's program. How does that work? Do I just pay the owner and hope they pay off the loan? If they don't pay it off can the creditors come back and get the wheeler that I now paid for? I know with a bank you need to get a letter from the bank saying it's paid off. But with polaris is it a credit card type thing that they don't have collateral (the wheeler)?

[leech~~]

Looking at purchasing a used wheeler but it has some portion of the original loan (they bought it new) thru the manufacturer's program. How does that work? Do I just pay the owner and hope they pay off the loan? If they don't pay it off can the creditors come back and get the wheeler that I now paid for? I know with a bank you need to get a letter from the bank saying it's paid off. But with polaris is it a credit card type thing that they don't have collateral (the wheeler)?

If anything do not give him all the cash. Work out a deal where you would write a check right to Polaris to pay their part off or work out taking over the payments with him and them and then pay the rest to him. But, there are tons of clean wheelers out their not to get mixed up in some kind of double payment deal. Good luck!

[Dave S]

This can be a bad deal all around. Yes most factory financed ATVs really aren't necessarily factory financed. They are on a credit card or unsecured loan.

Ask for proof that it's paid for before you hand any cash over.

[Riich]

You need to contact his creditor. Real simple. Once you do that, they'll let you know what needs to be done to satify the loan payoff.

[gunmunky]

Call the bank the holds the loan and ask them if the wheeler is being used as collateral or if it is an unsecured loan. If it's unsecured you shouldn't have any issues as long as you get the title. If it's secured I would ask them how to make sure the balance gets paid off.

[Dave S]

Call the bank the holds the loan and ask them if the wheeler is being used as collateral or if it is an unsecured loan. If it's unsecured you shouldn't have any issues as long as you get the title. If it's secured I would ask them how to make sure the balance gets paid off.

If the machine is in MN, there is no title.

[gunmunky]

LEP is correct that MN doesn't have a title for ATV's but some states do issue them. Make absolutly sure that you get the registration card as all ATV's must now be registered. Even if the machine is to be used for ag only it still must be registered. If the registration is not in the sellers name they have no right to sell the machine even if they have a bill of sale.

[Carpenter]

That's what I was thinking. It is MN and the machine was registered in his name. Should be good to go.