Financed vehicle — What You Need to Know
The buyer is financing the purchase through a lender. The lender will hold a security interest in the vehicle until the loan is paid in full, and the title will reflect the lienholder.
Seller guidance
If you are selling as a private party offering financing (seller financing), the transaction is governed by the Truth in Lending Act (TILA), Regulation Z (12 CFR Part 1026). You must provide the buyer a written disclosure of APR, finance charge, amount financed, total payments, and payment schedule. Failure to comply can expose you to civil liability.
Buyer guidance
When financing through a bank or credit union, your lender will place a lien on the title. You will not receive a clear title until the loan is paid off. Under TILA, you have the right to a written disclosure of all loan terms before signing. Review the APR and total cost of financing carefully.
Legal note (Michigan-specific)
MI lienholders must release the lien within 7 days of payoff per MCL 257.236. The lienholder files a release through the Secretary of State's ELT system or provides a physical release. The buyer should verify the title is clear before completing the purchase.
Financed vehicle checklist
- Obtain pre-approval letter or lender commitment before finalizing sale price
- Confirm lender's payoff instructions if seller has an existing lien
- Record the new lienholder on the title at the DMV
- Review TILA disclosure for APR, finance charge, and payment schedule
- Retain a copy of the signed bill of sale and loan documents
- Obtain written payoff amount from lienholder
- Lienholder releases lien within 7 days per MCL 257.236
- Confirm release in MI Secretary of State ELT system
- Transfer title within 15 days of sale
Farm Equipment Safety & Recall Information
Data sourced from NHTSA safety ratings and recall databases
Average Safety Rating
0 / 5
Avg. Price Range
$5,000–$200,000
Odometer Disclosure
Not required
Safety checkpoints for farm equipment buyers
- Inspect all safety guards and shields — OSHA requires guarding on all PTO and moving parts
- Check hydraulic system pressure and hose condition
- Verify operator station controls and emergency shutoff function
- Test lights and SMV signage for road transport
- Confirm fire extinguisher is present and current (combine/baler standard)
- Inspect ladder, platform, and handrails on cab-equipment
- Test seat-presence switch and ensure safety interlocks are not bypassed
- Verify pinch-point warning decals are legible and unmodified
Common recall categories
Hydraulic SystemElectricalSafety GuardsFire HazardSteering
On average, each farm equipment model has approximately 0.9 recalls. Always check your specific vehicle at NHTSA.gov/recalls before completing a sale.
Holland Financed vehicle farm equipment pdf — when to file
Michigan requires title transfer within 15 days of the sale date on the bill of sale. For financed vehicle transactions specifically, file at Secretary of State – Holland (Visit https://www.michigan.gov/sos for the nearest Holland, MI office) during normal hours: Mon–Fri 9:00 AM–5:00 PM. Miss the 15-day window and Michigan typically charges a late-transfer penalty plus accrued use tax, and the seller can remain on the title for civil liability until the buyer completes retitling. Bring the signed title, the completed Holland bill of sale, your government-issued ID, and payment for the $15.00 title transfer fee plus 7.50% sales tax on the purchase price.
PDF reminder. Whether you keep your pdf as a signed digital PDF, both buyer and seller should leave the signing with an identical executed copy. The buyer needs the original to present at Secretary of State – Holland; the seller keeps a duplicate to prove the date of transfer if a future liability question arises before the title fully retitles.