Its a 2001 or 2000 Chrysler 300. She has had it for a year and owes about 10,000 on it. I was going to do it because my credit isn't in the condition where I could finance my own car. She says it doesn't matter if my credit isn't great all I need to have is a job, which I do. Anyone ever took over someones payments? And is the transition pretty smooth and simple?
IF anyone has any personal experience please tell!!
2006-09-12 01:29:11 · 4 answers · asked by Anonymous in Cars & Transportation ➔ Buying & Selling
From personal experience, most banks to NOT do auto loan assumptions. Read the fine print on the loan; virtually all of them are non-assignable by the borrower. The buyer "assuming the loan" will actually be signing a new loan agreement with the bank. The terms will be based on their credit record. Even if you have good credit, the interest rate will likely be higher than the original buyer's rate was since the car is older now. Since you say your credit won't qualify you for a new loan, this is probably a dead deal.
$10k is a lot for even a 2001 model. Blue book value is closer to $8k. Personally I'd run away from this deal. It stinks!
If you and the seller do this anyway, keep in mind that you won't be able to get a title in your name while the loan still exists. You could pay the loan off and the seller could just walk in and take the car back. You'd have no recourse, since your transaction was fraudulent to begin with. The seller would be liable for any damage you caused since the car was still in her name, so it's not a good deal for her either.
2006-09-12 01:40:12 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Bad idea! You take over the payments and do not receive any boost to your credit (assuming you pay on time). The car is titled and registered to the seller and this will cause a problem getting insurance.... I'd avoid it if you can.
2006-09-12 08:38:19 · answer #2 · answered by Adios 5 · 1⤊ 0⤋
It depends on the value of the car relative to the value of the note. If the current value (market $) of the car is more than the note, yes, it's worth it. If not, then no.
2006-09-12 08:35:04 · answer #3 · answered by Pundit 3 · 0⤊ 0⤋
just make sure you have a good written contract between you both to protect you both.
2006-09-12 08:34:32 · answer #4 · answered by Anonymous · 0⤊ 1⤋