Legal Question in Business Law in Michigan

securing private car loan

I am considering loaning money (to another individual to purchase a used car. I assume I can use a promissory note. What type of legal nstrument would be used to be able to have the car as collateral?


Asked on 7/05/08, 4:35 pm

1 Answer from Attorneys
Audra Arndt Audra A. Arndt & Associates, PLLC

Re: securing private car loan

yes, you should definitely have something in writing, such as a promissory note, and you could also secured your interest by appearing as a lienholder on the title, which would prevent the person from selling the car without you signing off on it.

if the person has a house or other assets, you could also require security against that.

if you need help drafting the Note, please contact me. there are certain provisions you should have it in to protect yourself as much as possible.

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Answered on 7/05/08, 4:48 pm


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