Did you know that there is an entire area of law focused solely on something called Security Interests?
Most people don’t and I can’t blame them. It is dry and extremely complicated.
Watch this two-minute video to get the basic gist of what Security Interests are and why they’re important.
Below is a transcript of the video:
I’m going to get kind of legal here for a minute and talk about something that’s not really talked about very often over the next couple
of videos. That is called a security interest. I’m going to talk about it in terms of floor plan financing right now, but later on, we’re going to talk about it in terms of liens on motor vehicles. For floor plan financing, in a lot of financing arrangements, the floor plan company takes a security interest in that.
If the dealer gets $20,000 to go buy a car at the auction and the dealer buys a 2018 Altima for $20,000 and brings it on the lot, the floor plan company has a security interest in that car. Meaning if the dealer doesn’t pay the floor plan company for that vehicle, the floor plan company can take possession. They can repossess that car directly from the dealer. That is called a security interest.
That’s a general term of any floor plan arrangement. They are going to have a security interest in the vehicle that applies no matter what kind of vehicle, no matter how much money they’re giving. The money they give for that vehicle grants them a security interest, which means that they have an interest in getting paid that is secured by the vehicle so they can take the vehicle if they don’t get paid.
For more videos on the Georgia Car Law Authority series, please visit www.georgiacarlaw.com.
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