Trade-In

How Much Would You Pay…For Something You Won’t Own?

[Source: Samuel I. Kreamer, J.D., C.P.A., Kreamer Law Firm, P.C., 05.2016 | Keywords: Trade-In, Collateral] For some, the answer to this question is, “tens of thousands of dollars.” This is an increasingly common situation facing dealers. An item is taken by a dealer as a trade-in from a customer on a new purchase. After the trade-in item is sold, the dealer receives a demand letter or even a lawsuit from the customer’s bank. Sound familiar? The end result could be that not only did the dealer get too little for the equipment sold to the customer, but the dealer is now… Read More »

What You Need to Know Before You Buy Used Equipment or Accept Used Equipment in Trade

[Source: Samuel I. Kreamer, J.D., C.P.A., Kreamer Law Firm, P.C., 01.2016 | Keywords: Used Equipment, Trade-In] As we are all aware, banks (or other lenders) take a VERY dim view of customers who do not repay their loans. To increase the odds that their loan will get repaid, lenders routinely require borrowers to grant the lender the right to repossess and sell specific assets in satisfaction of their loan. This is alternately stated as: the borrower grants the lender a security interest (a “Lien”) in a specific asset (the “Collateral”). Sometimes borrowers try to sell (or use as trade-in) the bank’s Collateral…. Read More »