New W123 Purchase, going on an immediate 1 year lease - PeachParts Mercedes-Benz Forum

TylerH860 · #1 01-25-2009, 03:47 AM

Thread is VERY OLD! Someone dug it up for some reason:

Conclusion is here:

New W123 Purchase, going on an immediate 1 year lease

I'm traveling Wednesday to potentially purchase yet another W123, the 240D variety to be specific.

I've been quietly shopping Craigslist for a car to loan out to a friend down on his luck. After losing his job, struggling and overcoming an alcohol abuse problem, he wrecked his 2003 VW Jetta. Unfortunately, he was behind on his insurance payment and had no choice but to allow the car to get repossessed.

He's getting back on his feet, living in an Oxford house, got another good job, and has been stable for the past 4 months. The only thing really holding him back is a lack of transportation. The public system in Wichita is a joke, so he is forced to bum rides with friends and family . He's saved quite a bit of money, and really wanted me to find him an old MB Diesel to drive around. The first 300D I ever drove was his grandparents (deceased) Petrol Green '84, so he's familiar with W123s, and has an attachment to them similar to me with the 500SL.

What we have worked out is a mild payment plan over the next year to drive the car, and pay back debt he has owed me for a few years. I loaned him the money never expecting to get it back, (the way personal loans usually wind up) so his unprovoked initiative impressed me. The car will be titled in my name, with his initial cash covering the majority of the purchase, then a monthly payment over the next year. He plans to "get out of Dodge" and get a fresh start with his uncle in California within the next year, so he doesn't really have an interest in owning a car. I don't see much risk with this plan, and will accept the car back at any time should he feel he can no longer pay. (I'll get a spare key just in case, but I seriously doubt it will ever come to that) Best case scenario: Everything goes to plan, I get all my money back, and a nice car to sell. Worst case scenario: He no longer pays, and I take the car back and sell it, still gaining more cash than I had. If he were to wreck it or let it run out of oil, then I lose the resale, but still don't lose any money.

I've been around the block a few times, so I'll prepare for the worst, and hope for the best. Now for the car: It seems like a peach...

1983 240D Automatic:

yup, automatic... Perfect to keep him out of trouble.

174k on the working odometer. 2 owners, the current owner only owning the car for less than 2 years. He claims he purchased the car because it was a good deal, loved his diesel truck, but wanted a more economical around town shooter. He wound up driving the car much less than he thought, said he was a big guy and it wasn't comfortable and as fuel prices went down, he felt he no longer needs the car. He claims it has working AC and heat, good rubber, no leaks, and starts up on the coldest days without a block heater easily. He went on and on about not having to plug it in, since apparently his truck is a lost cause if he doesn't. The blue paint looks great in the pictures, and he also says that some rust is there, but its very minimal.

When I specifically asked if he knew about anything that was wrong with the car, he fessed up to a left rear blinker not flashing.

He also mentioned driving the car to a swap meet about 60 miles away, and got the interior was a bit dirty from whatever he hauled.

He's asking a grand for it, and ended our pleasant conversation saying he is very flexible on the price... He shouldn't have told me that.

I'm looking forward to Wednesday, gawking at a W123 with a missing cylinder.

The backup car, should this deal not go through, is a green '79 300D with 50k on a documented rebuild. I'm curious how extensive of a rebuild it was, but I'm not wanting to deal with another Evil Servo, since the seller claims the climate control is temperamental.

Paging Jimmy for evil Servo Picture.

MBeige · #2 01-25-2009, 04:13 AM

Congrats Tyler, to both you and your friend. I hope the car turns out to be as reliable as your 300D for obvious reasons. These are hard times, your friend is lucky to have you around to help him out.

TylerH860 · #3 01-25-2009, 04:17 AM

Quote:

Originally Posted by MBeige

Congrats Tyler, to both you and your friend. I hope the car turns out to be as reliable as your 300D for obvious reasons. These are hard times, your friend is lucky to have you around to help him out.

Jeeze, don't congratulate me yet. Knock on Zebrano before you put a hex on this whole thing.

MBeige · #4 01-25-2009, 04:30 AM

Quote:

Originally Posted by TylerH860

Jeeze, don't congratulate me yet. Knock on Zebrano before you put a hex on this whole thing.

Don't knock too hard lest you have a spare wood trim piece in hand

TylerH860 · #5 01-25-2009, 04:38 AM

My only hope is to buy a car that doesn't smell. Every Mercedes I have bought has had some kind of foul odor to it. Ol' Turbo smelled like dirt, Norm smelled like an animal crawled into the seats and died, the Excelsior was musty, and The Defiant has a rodent smell I'm slowly eliminating.

MBeige · #6 01-25-2009, 04:43 AM

Strange, never had that problem with ours.

Except the 300TD that we sold before, PO was a smoker.

The w124 smells different than the w201, which smells like crayons. Then again, the w124 has leather interior, while the w201 has 'tex. The w123 is different of course since I've taken out the original horsehair and replaced with good used foam pads in the yards. Leather in a w123 really does smell nice, as I've witnessed with Derek's car.

I didn't smell anything when I first met Val- I mean Ol' Turbo...

TylerH860 · #7 01-25-2009, 04:55 AM

Quote:

Originally Posted by MBeige

I didn't smell anything when I first met Val- I mean Ol' Turbo...

EASY THERE!

My initial thorough detail usually eliminates the odor, the only exception being Norm. The original seats had massive holes in it, and the car sat in a barn for quite a while before I rescued it. As soon as I replaced the seats, the smell went away. I'm convinced something crawled into the drivers side seat back and died.

nhdoc · #8 01-25-2009, 06:35 AM

Hold on just a second, there...you may be opening yourself up to a real problem here, not that your heart isn't in the right place. If I read this correctly you plan on keeping the title to the car in your name. This is a big mistake IMHO. You would be much better off selling him the car and taking a lien on it which he would pay off. The reason is, if, for some reason he gets into an accident (drunk or not) and injures or kills someone or is otherwise liable for monetary damages (like hi crashes into one of those $250,000 Rolls Royce or McClarens) the attorneys for the injured parties will come after both the driver and owner of the car. And, god forbid he doesn't keep up on his insurance payments or worse yet the insurance is in your name you will certainly be sued.

You really don't want to be extending yourself to the point of a lifetime of debt or paying higher insurance premiums to cover the losses of another person for being a nice guy, do you? Cars which are "professionally leased" have pretty well written contracts which keep the leasing companies (lessor) from being liable for damages by the leasees but even then, in some circumstances (like when the leasee's insurance lapses and the lessor isn't diligent about making sure the car is insured) the attorneys will go after the owner of the car (the leasing company)...so my advice (and I am not an attorney) is put the car in his name and have him pay a "loan" off rather than a lease. As a lienholder you are not likely to be involved in any liability claim against the driver who is the legal owner of the car.

running-snail · #9 01-25-2009, 09:14 AM

Agree with NHDoc completely (assuming you aren't also insuring the car for your friend). You need to be a lienholder, not a titleholder in this situation; particularly given your knowledge of prior circumstances.

POS · #10 01-25-2009, 09:23 AM

I also strongly agree with Marty (NHDoc); not only will you be liable because you own the car, but a lawyer could easily make a case that you CONTRIBUTED to the accident because you knowingly gave a car to a man with known alcohol issues. God can only help you if he falls off the wagon and runs over a school child. Don't keep ownership of that car - you already said you didn't expect to get the money back, so let the car go 100%. It's in your best interest.

TylerH860 · #11 01-25-2009, 09:51 AM

I had the same issues crawling around in the back of my head, but thought the insurance being in his name would clear me out... Probably better not to take the risk in todays "Lawyer Up" world.

That's why I keep posting, thanks for the advice guys...

tyl604 · #12 01-25-2009, 10:19 AM

Tyler - If you have an independent insurance agent, call him and discuss this. I think he will recommend that you are not the owner/insured on this car. Advice of others above is right; do not take the chance.

However, as someone who works for Habitat for Humanity every Saturday for the last eleven years, I want to thank you for giving someone a hand up - not a hand out. We are all in this together. You sound like a good guy.

MBNRA · #13 01-25-2009, 10:45 AM

Quote:

Originally Posted by TylerH860

I had the same issues crawling around in the back of my head, but thought the insurance being in his name would clear me out... Probably better not to take the risk in todays "Lawyer Up" world.

That's why I keep posting, thanks for the advice guys...

TylerH860, What you can do is REGISTER the car in his name but keep the title in your posession and have your name on the title as the legal lienholder. This way he is responsible for the operation of the car and keeping tabs on it but you still hold the title with none of the responsibilities of him being possibly reckless!

An insurance company will then give him insurance to drive it and will keep both your contact info handy and you can keep a finger on the pulse of what is going on at all times.

Youir friend should be on the title as the registered owner and you should be on it as the Equity owner or lienholder. This is what dealers do and it works protecting your interests. Should he fail to keep up his end of the bargain like keeping current registration tags and insurance on it, ownership and repossession rights fall back to you. Should he get into an accident, especially while DWI or DUI, the worst that can happen to you is your going to get a call from the Police telling you to come and get your car, even if he kills someone! This is what you want and a lawyer will find he can't get a dime from you because you are NOT the registered owner! He could try, but the State of Kansas will back YOU up in this situation! Good luck!

Brian Carlton · #14 01-25-2009, 10:48 AM

Quote:

Originally Posted by TylerH860

I The car will be titled in my name........

I've been around the block a few times, so I'll prepare for the worst, and hope for the best.

Let's just say that I've been around a few more blocks than you have and the thought to put the title in your name is exceedingly risky. Worst case scehario is that he falls back into his alcohol induced ways and drives the vehicle when he shouldn't and kills somebody. YOUR name is on the title.

Take the money that he offers up front and give him the vehicle. He gets title and insurance. Take a note for the balance. Worst case scenario is that you are out the remainder of the note.............way better than having a $3M judgment over your head for the rest of your life.

Alternately, the suggestion in post #13 should also work out for you.

JackG · #15 01-25-2009, 11:01 AM

I agree with a lien instead of a lease.

Hold the lien, and if possible, have him sign a limited
power of attorney in the event he does not follow through,
you can sign his name and take ownership much easier.