buying a cherry hotrod with string attached?

vash · vash's Garage

my coworker has the opp to buy a 1956 chevy 210. essentially the lighter hotrod version of a belair IIRC.

the owner is getting divorced and the krap is smashing into his fan regularly. he is dumping his "fleet". the one that got our attention is the chevy. it is bone stock perfect. he said my coworker can get it for $18k, but if he sells it he gets first dibs at the original price..WTF? sounds like a poorly run pawn shop?

this would be "his word is his honor" BS..since they will not have a contract..

coworker is about to bail on the deal..but..dang.what a deal.! i hope to see it this weekend. for the schitandgrins of it.

red-beard · red-beard's Garage

Quote:

Originally Posted by vash

my coworker has the opp to buy a 1956 chevy 210. essentially the lighter hotrod version of a belair IIRC.

the owner is getting divorced and the krap is smashing into his fan regularly. he is dumping his "fleet". the one that got our attention is the chevy. it is bone stock perfect. he said my coworker can get it for $18k, but if he sells it he gets first dibs at the original price..WTF? sounds like a poorly run pawn shop?

this would be "his word is his honor" BS..since they will not have a contract..

coworker is about to bail on the deal..but..dang.what a deal.! i hope to see it this weekend. for the schitandgrins of it.

Pawn shops charge a monthy fee for "storage". I'd say orignal cost, plus inflation and up to 10% per year.

Jim Bremner · 10-07-2011, 02:05 PM

If its between them I see no problem. If they're men about it

kaisen · 10-07-2011, 02:08 PM

Sounds like a loan where the interest is "you get to use my car"

Tim Hancock · 10-07-2011, 02:10 PM

Quote:

Originally Posted by Jim Bremner

If its between them I see no problem. If they're men about it

+1..... Either agree and buy it..... or don't.

LakeCleElum · 10-07-2011, 02:11 PM

Friend of mine just sold a really nice, '56 210 for $6K.....Was a 4-door though....Check the market B4 you jump...

Jim Bremner · 10-07-2011, 02:12 PM

The phrase is When it's sold he gets first crack at it at 18k If he keeps it with out selling or the p/o can't ante up 18k at time of sell there's not an issue.

If the car values at 100k there's another story.

Jim Bremner · 10-07-2011, 02:27 PM

Quote:

Originally Posted by LakeCleElum

Friend of mine just sold a really nice, '56 210 for $6K.....Was a 4-door though....Check the market B4 you jump...

4 door shoebox...I'm sure it has a nice personality!

Dantilla · 10-07-2011, 03:19 PM

I'd modify to say the seller has first crack to buy it back at fair market value.

A930Rocket · 10-07-2011, 09:11 PM

Buy back at cost only within a specified period of time 9like 5 years?), not forever.

wdfifteen · wdfifteen's Garage

He can't expect the friend to insure and maintain if for years and years and then sell it back at the original price. Red-Beard's suggestion of the original price plus a percentage for every year he keeps the car sounds reasonable.

azasadny · azasadny's Garage

I've heard of similar "strings" with gun sales. Typically, the guy is going through a divorce and he "sells" the gun(s) to a friend with the understanding that he can buy the gun back for the same price. In the meantime, the buyer gets to shoot the gun. Very similar to a pawn shop, without the interest charges.

Por_sha911 · Por_sha911's Garage

If the buyer wants to keep the car he may end up with a hassle. I foresee the seller getting past the divorce and start pressuring him to sell it back to him. Besides, its a bad deal for the buyer. If the car goes down in value the seller walks away but if it goes up in value the new owner can't make a profit and the he gets $18k back is inflated dollars.

dad911 · 10-08-2011, 04:36 PM

I saw a guy try to do it with his plane. The buyer flipped it for a profit, and he got screwed. No docs, tough.

Based on some of his other dealings, he got what he deserved.

I have a deal with my '71. First right of refusal with my mechanic/friend. Bought it from him, sold it back to him, and I bought it back 2 years ago. But we have no set price, just first right to buy if I sell it again.

Por_sha911 · Por_sha911's Garage

Quote:

Originally Posted by dad911

First right of refusal...no set price, just first right to buy if I sell it again.

That is a totally reasonable agreement.

Jim Bremner · 10-08-2011, 04:58 PM

DanielDudley · 10-09-2011, 02:57 AM

Quote:

Originally Posted by dad911

{But } we have no set price, just first right to buy if I sell it again.

This is how I do it. Nobody keep their word though, so when I sell something, I say good by to it.

Rick V · 10-09-2011, 03:20 AM

First right of refusal is always given with an object of some value, although a price lock is over the top. Your friend should just buy the car with a gentleman's agreement and nothing more but no price should be agreed upon. Nothing but the purchase agreement goes on paper.

fintstone · fintstone's Garage

Clearly just a scheme to hide assets during a divorce and really not quite proper. Obviously the right to refusal is of value so the price should be lowered considerably. If I were the buyer and thought it was a great deal, I would probably agree with the deal a long as there was a cut off date (prevent my immediately flipping it, but not making me keep it forever so that I am not encumbering myself or my heirs) and/or agreement that any sale would be at market value (match the highest offer, appraised value, or something similar).