I have a chance to get a nice, slightly used, 2003 Thomas Skid-Loader with only 200 hours on it, from a guy who's having bad day - bankruptcy & divorce. He therefore wants a "cash" deal. He said he bought it "brand new" at an auction, but Skid-steers don't have any type of registrations or titles, do they? I was wondering how I can check the legality of the situation to protect myself. I don't want his bankruptcy creditors or ex-wife to try to reposess the machine at my house after he's gone with my money. Is there anything I should be careful of or look out for? Is there anyway to ensure this sales transaction is "legal" from my perspective? Is there any way to check the serial number to see if he is actually the original owner/purchaser of the "new" machine? Any consideration, suggestions, or advice would be greatly appreciated. Thanks!
buying a machine This could be a sticky one, my first thought is stay away from this deal. Im sure new machines are sold at auctions, but the few auctions, (about 20) Ive been to, has never had any new machines. So this sends another red flag up for me. If you borrow money on most any equipment, the lender list that loan in a particular agency (this is where I went blank) I think its called a CCR or something like that. Just call any equipment dealer and they should be able to research this, to see if has a lien on it. Even though he MIGHT have paid cash for it, did he borrow on it later???? Lets say you buy it at this great deal, after a while you want to sell it, now the buyer does the research and finds a outstanding loan on the machine HUMMMM he reports it to that agency and they come get your machine, not pretty. Wonder what the wife is going to say about not getting her cut? Just do your homework it will save you a lot of grief. Good Luck
Thanks for the reply... I checked this part out with Ritchie Bros... Thomas was trying to break into the American market and was auctioning-off a couple thousand "new" machines around that time 2002-2004 through Ritchie Bros. Auctioneers. The average was between $11K & $15K...
I had been at several RB sales that had new Thomas machines on them, so I know first hand that they did use the RB sales to market their machines for a time. I believe that any thing the seller sells prior to filling bankrupcy up to like 6 months prior, the courts are going to want that money (this prevents someone from liquidating assets for cash just prior to filling and reducing the assets which can be sold to satisfy credit obligations). As stated the ex will likely want her portion of any thing he sells. That may or may not entitle her to come after you, more likely she would only be able to go after the seller for her portion of the sale. The courts would be more of an issue for me personally. The UC filings can be checked to see what is liened against it, but in this circumstance that may no be the only issue at hand. I would either consult an attorney who is savy on such things or look elsewhere for a machine with less baggage. Its only a Thomas skid steer, IMHO not worth getting into major headaches over at any price.