Welcome to CFF-U: Industries | Private Party Financing!

Welcome to the CFF University Industry Private Party session I’m your host, Matt Manero. We’re talking about this equipment shortage that just doesn’t seem to be going away.

There is no question that inventory on the dealer lots is limited. We hope it goes away because it’s creating a lot of challenges, both for the dealerships and for our customers trying to buy equipment. So at commercial fleet, we’ve started a program that will help you mitigate the search for equipment, and we call it our private party financing program. And what that means is you don’t have to buy equipment from a licensed dealership.

You could buy a piece of equipment from your friends or from your family, or from a competitor or from an internet listing of an individual who has a piece of equipment for sale that you’d be interested in buying. And we refer to that a commercial fleet as a private party sale when a dealership is not involved.

Why Some Finance Lenders Don’t Finance Private Party Deals

Now, the challenge in the finance market is most lenders don’t like to finance private party sales. And the reasoning is pretty simple. How does the lender ensure that they will get the title free and clear to put it in your name with their name as the lien holder?

And that becomes simple when there’s a dealership involved because part of the dealership’s license and requirement and bonding is to ensure lean perfection entitled transfer, but when there’s no dealership involved and it’s a private party to private party sale, that becomes the question. So many lenders just say, we don’t do private party sales, but commercial fleet does do private party sales. We get it. We’re experts in transportation equipment, we’re experts in titling.

So we understand how to do it. So when you’re looking for equipment and let’s just say, you are literally drive down the street and you see a manufacturing company with a 26 foot box truck for sale in their parking lot.

When you want to buy that truck commercial fleet. We’ll do it for you and here’s how we will do it.

Our Process For Private Party Financing

We’ll communicate with this seller and we’ll understand what is the lien position on that vehicle. In other words, do they own it free and clear or does a finance company or a bank have a lien against it? In either case we will still do that deal for you. It can slow the process down a little bit, because we may have to pay off the lien holder to get free and clear title, to be able to then re-register that vehicle in your name with us as the lien holder, that’s a possibility, or maybe there is no lien on it. They own it free and clear. We will take the title to our office. We will reassign the title to your name with the lien holder on it and we’ll finance. It just like it was purchased from a dealership.

We Can When Others Can’t!

So in this environment of hard to find equipment limited inventory, we want you to begin to think outside of the traditional sources of finding equipment, because you have a lender that wants to do that deal for you.

So again, if you’re a towing company and a towing company across the street has a new, as a used heavy duty wrecker that they don’t want any more they want to replace. And you think it’s a perfect fit for your fleet. We want to finance that for you. Remember, we are experts at transportation, equipment financing and titling of the equipment, because it’s just as important for you to make sure that the title from an individual that you’re buying the equipment from is titled properly in your name, as it is for us.

We’re on the same team and making sure that nobody gets, misrepresented, or in fact, we end up just paying the seller and the seller never sends us the title.