SOCIAL SALES

Dear Everybody’s Uncle,

I sold a truck to my sister's boyfriend. He was supposed to make bi-weekly payments. His first payment was due yesterday. He called to say his work messed up his paycheck and he can't pay me till next week. What should I do?

First, learn not to do business in an unbusinesslike way.

You are not a finance company. Social financing is almost always a bad idea but especially so when selling a vehicle. If the vehicle breaks down for any reason there is a good chance you will be accused of selling a lemon. If he wraps it around a pole, what will be his highest priority, paying you or getting himself another vehicle? He now has your truck and your money. Did you get anything in writing?

As an aside, I am always amused that slow payers are annoyed because someone is late paying them but expect you not be annoyed when they are late paying you.

Social sales often state lower prices to avoid sales tax. If this is the case, your already week case is further diminished by a lower than true sale price. Since you completed the sale, he can say he paid you in cash. Your legal position is poor to non-existent. Of course, you could ask your sister to bear witness against her boyfriend and put herself in a no win situation - not a good scenario.

As a tactic, write up a payment schedule - just so there is no confusion. Put the sale price on the top and write in the amount and date of each payment. Ask him to sign or initial the document. An honorable person does not balk at good record procedures. If he balks expect trouble. In effect you are creating a "contract" after the fact, more accurately, the precedent of payment. If he pays you in check the sequence of payments will evidence the sale. If he pays cash give him a signed and dated receipt and ask him to sign or initial it. Tell him offering a receipt for cash avoids confusion, especially when payments are not timely.

You could say nothing and wait for next week. Maybe you'll get paid; maybe you won't. Maybe he is the most sincere person in the world and will never miss a payment again. Maybe you will only sustain a small loss. Maybe you will use more caution next time.

A lot of "maybes" in there.

Everybody's Uncle