2006-06-28 10:39:40 · 8 answers · asked by maladjustednormality 1 in Cars & Transportation ➔ Buying & Selling
There is a HUGE risk in this situation if what you are talking about is simply giving the car to the person and letting them make the payments!!!
Any late payments will adversely affect your credit rating and you are still the only responsible party in the lender's eyes. Even worse, if the person wrecks the car or just skips town then you have no car and still owe the full balance to the lender, by the way, did I mention you still have to keep the car insured? If you don't, the lender will enforce it's own insurance at exorbitant rates that will be added to your balance....
The only way to move forward with this is to call your lender, describe what you want to do and let them be your guide. They will most likely want the person you are dealing with to submit a credit application and go through the full approval process. This is to protect both you and them. If the person doesn't qualify for the bank, then you don't want any part of this deal either!!!
Good Luck
2006-06-28 10:59:23 · answer #1 · answered by BILL P 3 · 2⤊ 0⤋
1
2016-09-26 06:37:59 · answer #2 · answered by Keisha 3 · 0⤊ 0⤋
Yes, big time. They could fail to make the payments. Since it is your loan the bank will go after you. Your credit would be impacted. Because of this, most banks do not allow loans to be assumed. If someone wants to buy your car, require cash (at least enough to pay off your loan so you can deliver the title) or that they get a loan to pay off your loan completely.
2006-06-28 10:45:45 · answer #3 · answered by davidmi711 7 · 0⤊ 0⤋
The risk is that if they don't have the loan transferred into their name, that if they fail to make a payment it goes against your credit.
2006-06-28 10:43:20 · answer #4 · answered by Joey 5 · 0⤊ 0⤋
You can transfer the loan to their name. It costs money to do it. You need to talk to the bank you got the loan from. Or the person could just get a new loan and buy it from you.
2006-06-28 10:44:00 · answer #5 · answered by hullo? 4 · 0⤊ 0⤋
there is no risk if they put the loan in there name,it clears you.cll the finance comany,let them see if the person can take over the notes.
2006-06-28 10:44:32 · answer #6 · answered by strange_busaman 3 · 0⤊ 0⤋
I wouldn't do it at all!!!
2006-06-28 10:43:24 · answer #7 · answered by OneRunningMan 6 · 0⤊ 0⤋
about 1000000000 risk!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
2006-06-28 10:43:16 · answer #8 · answered by Mason B 1 · 0⤊ 0⤋