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#2102750 - 10/12/16 08:32 PM $1 buyback by dealer - still exempt
Harvey Offline
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Harvey
Joined: Feb 2001
Posts: 146
We purchase dealer loans. It has come to our attention that we have two dealers who sell the vehicle and then transfer the dealer paper to a finance company, usually so the purchaser can get some type of rebate. Then two months later, the purchaser of the vehicle goes back to the dealer, sells the vehicle to the dealer for a small amount, hence the $1 comment. Then the dealer resells the vehicle to the purchaser and the dealer treats the purchase as a new loan and then shops the new loan out to the FIs they sell paper to. So my question is, if the purchaser is covered under MLA, would this still be an exempt loan because basically the purchaser, purchased the same vehicle twice from the same dealer. I am getting too old for this stuff.

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#2103079 - 10/14/16 05:45 PM Re: $1 buyback by dealer - still exempt Harvey
Dan Persfull Offline
10K Club
Dan Persfull
Joined: Aug 2002
Posts: 47,517
Bloomington, IN
I wouldn't touch this with a 10 foot pole until I talked to an attorney.
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The opinions expressed are mine and they are not to be taken as legal advice.

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#2103141 - 10/14/16 10:50 PM Re: $1 buyback by dealer - still exempt Harvey
Andy_Z Offline
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Andy_Z
Joined: Oct 2000
Posts: 27,748
On the Net
It's certainly not on the up and up and I'd agree with Dan, dealing with this is dealing with trouble to game the rules.
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AndyZ CRCM
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