the guy is still paying off his car with his original loan. this has a better interest rate than what I can get with a used car loan from a third party bank. can he somehow sign over the loan to me so I get all the responsibility of it and also build my credit at the same time?
2006-07-13 15:15:57 · 10 answers · asked by Steve G 1 in Business & Finance ➔ Credit
I don't believe car loans are assumable, and I don't know why anyone would want to let another person assume their loan. If the new person defaults on the loan the original loanee is then responsible.
MeOw
2006-07-13 15:22:48 · answer #1 · answered by Anonymous · 0⤊ 0⤋
Normally the bank will not let this happen. The reason for this is because the original person on the car loan met the banks credit criteria and qualified for the loan at a specific rate. You will be paying is the residual of what is owed on the car not the actual value of the car. What the bank needs to do is assess your risk factors.
2006-07-13 15:22:54 · answer #2 · answered by colts fan 2 · 0⤊ 0⤋
Good plan but it won't work. Banks approve borrowers based on their credit worthiness and perhaps the collateral as well. You weren't part of that transaction so you can't have an "assignment" of his contract.
Still, it's worth going to your own bank or credit union and applying for the loan. That is a good way to start to build your credit. Just make sure you can afford the monthly payments along with the insurance which will probably be high if you are male and under 24.
2006-07-13 15:20:48 · answer #3 · answered by Anonymous · 0⤊ 0⤋
Unfortunately, this is not possible. The issue is that the bank gave him the loan based on his credit. If you have worse credit than him, then your interest rate would have been higher. For this reason, if you were to take over the loan, then this would be a "misrepresentation of a material fact" and would cause the contract (loan agreement) to be revoked. At least, in most of the US. Have a nice day!
2006-07-13 15:20:28 · answer #4 · answered by davidw5748 3 · 0⤊ 0⤋
The lender who loaned him the money to buy the car would have to approve of you being the one to pay off the loan. that would equate you taking out a loan, so it's in your name.
You can simply make payments on his loan, but that is reported on his credit, not yours.
2006-07-13 15:19:34 · answer #5 · answered by Stuart 7 · 0⤊ 0⤋
As long as the loan is in his name, it won't show up on your credit report. If his current lender will allow you to take over payments and release him from his obligation, you can do it. But don't bet on it.
2006-07-13 16:17:37 · answer #6 · answered by Anonymous · 0⤊ 0⤋
NO......THE BANK HAS TO RE-DO THE LOAN WITH THE PAPER WORK IN YOUR NAME..
2006-07-13 15:18:12 · answer #7 · answered by BUD 5 · 0⤊ 0⤋
have him cosign the agreement with the bank or other third party
2006-07-13 15:20:20 · answer #8 · answered by raham18 1 · 0⤊ 0⤋
Sure, you just need the approval of the lender.
2006-07-13 15:20:57 · answer #9 · answered by szydkids 5 · 0⤊ 0⤋
NO AND NO
2006-07-13 15:18:30 · answer #10 · answered by Anonymous · 0⤊ 0⤋