Selling Out Of Trust

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Dictionary Says

Definition of 'Selling Out Of Trust'

A term commonly used in the automobile industry to refer to the selling of a car that has been paid for with a loan and then not using the sale proceeds to pay back the lender. This practice may be engaged in by car dealerships or individuals facing financial difficulty. Normally, if an individual can't make his car payments, the bank takes back the car. When the owner sells the car out of trust and doesn't repay the loan, the bank can't seize the loan collateral (the car).
Investopedia Says

Investopedia explains 'Selling Out Of Trust'

Dealers who obtain loans to acquire their vehicles can likewise engage in selling out of trust. Normally, a dealer pays monthly interest in the loans used to purchase vehicles until the vehicles are sold, at which point the loan is supposed to be repaid. While this term is commonly used in reference to car sales, it can also be used in other situations where a debtor sells an item without passing the sale proceeds to the lender. Selling out of trust is illegal.
Search results for

'Selling Out Of Trust'

  • Saving Money With A Private Annuity Trust

    http://www.investopedia.com/articles/retirement/06/PrivateAnnuity.asp
    ... But selling comes with a cost - namely, paying capital gains ... we'll look at the private
    annuity trust, a tool ... you to spread capital gains taxation out over many ...

  • The Week Ahead: Are Hedge Funds Bailing Out?

    http://stocks.investopedia.com/stock-analysis/moneyshow/TheWeekAheadAreHedgeFundsBailingOut.aspx
    ... Russell 2000 The iShares Russell 2000 Trust (IWM) is also ... the others in April, which
    turned out to be a ... The Transports were hit with heavier selling last week ...

  • Series 66 Study Guide - Conflicts of Interest - Selling Away ...

    http://www.investopedia.com/exam-guide/series-66/conflicts-of-interest/selling-away-client-loans-confidentiality.asp
    ... The basic idea here is that if you are selling away, as a broker, you are attempting
    to sell ... Look Out! ... trust arrangements; legal affairs; tax information. ...

  • The Getty Oil Takeover Fiasco

    http://www.investopedia.com/articles/financial-theory/09/getty-oil-takeover-fiasco.asp
    ... Getty had a prepared paper saying that the trust and the museum removed all the ... lawsuits,
    but if they agreed they could also be sued for selling out a price ...

  • Trust In Utilities

    http://www.investopedia.com/articles/basics/09/trust-in-utilities.asp
    ... are now generating the power and selling it to ... of capital expenditures instead of
    paying it out as dividends ... looking to invest their money with a utility trust. ...

  • Short Selling As A Predictor Of Demise

    http://stocks.investopedia.com/stock-analysis/2009/Short-Selling-As-A-Predictor-Of-Demise-MF-NRF-RATE0227.aspx
    ... have suffered the brunt of selling recently, as ... seem investors would have closed
    out short positions ... NorthStar, a real estate investment trust (REIT), recently ...

  • August 5, 2011 Market Summary

    http://stocks.investopedia.com/stock-analysis/cotd/DIA20110805.aspx
    ... few days though with the ferocity of the recent selling. ... takes time as buyers and
    sellers battle it out. ... The Diamonds Trust, Series 1 (NYSE:DIA) ETF also came ...

  • Series 26 Study Guide - Mutual Fund Accounts - Selling Mutual Fund ...

    http://www.investopedia.com/exam-guide/series-26/mutual-fund-accounts/mutual-fund-shares.asp
    ... Real estate investment trust (REIT) dividends do not qualify for ... First-in/first-out -
    If the investor does not ... This is the method used when selling all shares ...

  • Why You DON'T Want To Be A Millionaire Slideshow | Investopedia

    http://www.investopedia.com/slide-show/no_millionaire/trust.aspx
    ... The question, again, becomes who should you trust? Suddenly Insecure. ... Here's a list
    of the best-selling cars of all time. ... 5 Ways To Make Your Resume Stand Out. ...

  • Dynegy Finally Takes A Bid

    http://stocks.investopedia.com/stock-analysis/2010/Dynegy-Finally-Takes-A-Bid-DYN-NRG-RRI-CPN-BX0817.aspx
    ... Moreover, selling four Dynegy natural gas plants to NRG will certainly defray some
    of the costs of the deal ... For related reading, check out Trust In Utilities ...

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