Lending money to a friend- drawing up a contract

coldhandoff

I meant you can't write them as in future dating it will have no effect, it will still go through fine.

malkyh

coldhandoff wrote: »

I meant you can't write them as in future dating it will have no effect, it will still go through fine.

Really? Is that Natwest only? My company bank high volumes of investor cheques and cheques postdated have always been rejected. Suppose it all depends on the vigilance of the person at the clearing centre though.

Barclays certainly reject postdated cheques.

coldhandoff

malkyh wrote: »

Is that Natwest only?

Might be then.

jonesMUFCforever

Shall I tell you what I think??

OK here goes - something will go wrong with the car and the friend will stop paying.
OP will then come back on here asking how to get his money - the answer will be he can't.

Forget contracts or post dated cheques - if he has not got the cash to pay for the car sell to someone who does.

k12479

If, as you say, you want to help your friend out and don't want to keep it yourself for 12 months then perhaps sell it to him outright now for what he can afford.

tell_it_how_it_is

I'd never say don't do it outright, because sometimes you know enough about a person's character to know whether repaying is likely to be an issue i.e. I lent my dad £8k interest free absolutely certain I'd get it all back, and I did, with him paying extra above the agreed whenever he could. But similarly there are a couple of mates I'd never envisage lending anything more than £40-£50 to.

So I think you need to also weigh up your mate (does he hold down a steady job? is he regularly skint?) while determining if you're happy to go ahead. If so, the only slight worry would be that it is a car, and - as mentioned above - if something goes wrong with the car before he's paid up, that might alter his attitude towards carrying on paying.

jason1231972

k12479 wrote: »

If, as you say, you want to help your friend out and don't want to keep it yourself for 12 months then perhaps sell it to him outright now for what he can afford.

Good idea this. If he can't afford it at a knockdown price, walk away.

I'm wondering if there's any way the OP can keep the logbook/remain the registered keeper for the duration of this agreement? Not sure how that affects insurance, etc., but someone's bound to know.

jason1231972

tell_it_how_it_is wrote: »

But similarly there are a couple of mates I'd never envisage lending anything more than £40-£50 to.

I lent a small sum to a mate once, and he later tapped me up for more money to buy a few lottery scratchcards in the hope that he'd win the money to repay the original loan :rotfl:

Amused, I lent him more. He didn't win a penny, but I did eventually get all my money back!

C_Mababejive

I always say,the best place to get loans is from a bank.

tell_it_how_it_is

jason1231972 wrote: »

I lent a small sum to a mate once, and he later tapped me up for more money to buy a few lottery scratchcards in the hope that he'd win the money to repay the original loan :rotfl:

Amused, I lent him more. He didn't win a penny, but I did eventually get all my money back!

Haha, like it, the cheek of it! Hope you had your money saving head on to insist on 50% of any winnings above what he owed you, if it had come to pass.