Archive September 2019

All of the articles archived for the month that you have specified are displayed below.

My Customer Died, Now What?

We often receive calls from our dealer members trying to figure out what to do when one of their customers has passed away with a pending retail installment contract. Dealers need to exercise caution when allowing surviving family and friends to attempt to assume ownership roles under the contract or to retain possession of the vehicle.

The usual inquiry is made by a family member such as a child, parent, brother, etc., but can also be a live-in girlfriend or even ex-girlfriend or other unique relationship. Unfortunately, many customers in the BHPH world do not have a will, estate, executor, or army of lawyers to handle their affairs.

How Do Arbitration Agreements Work Anyway

The following article is courtesy of:
Jordan A. Mayfield
Naham Howell Smith & Lee PLLC

Most retail installment contracts for the purchase of a car contain an arbitration clause or the dealership will have a stand-alone arbitration agreement.  I would recommend that the arbitration agreement be part of the retail installment contract if the vehicle is financed since many of these agreements have a clause that states that the retail installment agreement is the entire agreement between the parties.

Be Careful Using Conditional Delivery Agreements

Does your dealership ever sell vehicles on Saturday or Sunday, but your third-party lender is unavailable to confirm underwriting and funding?  What do you do?  Some dealers use what is called a Conditional Delivery Agreement? A CDA is used in situations where the dealer is helping a customer secure financing through a third party that cannot be closed or funded right away for a number of reasons.  A CDA should be signed before the retail installment contract is signed, but make sure your collateral is protected.