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Updated over 5 years ago on . Most recent reply

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Aaron Gamboa
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3
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Accepting a purchase from MTN's

Aaron Gamboa
Posted

I am a car salesman in El Paso Texas working for a dealership. I recently came in contact with a local investor in my city who is interested in making a purchase of 10 vehicles with an estimated cost of 450 thousand dollars. This customer has informed me that he is wishing to purchase this fleet of vehicles using what is called Medium Term Notes. I have begun seeking out information on this topic and am still in a place where I am very unaware of this type of transaction. This customer is telling me that his reason for this purchase is to eliminate any net cost out of his own pocket. He told me, "What you will see is that im spending 450k, but in reality, I will not spend one penny." 

Can someone please explain to me how this transaction would take place and if there are any risks that my company would make in using this method?

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