how to arrange for the person to immediately take over payments, so we won't be liable for any accidents, etc. while the vehicle is still in our name. I have relatives who did the takeover payments route a few times. thanx
2006-11-27 15:14:06 · 8 answers · asked by hatrock 1 in Cars & Transportation ➔ Other - Cars & Transportation
This is a very, very bad idea. If they miss one payment it's on your credit report. If they total the car or trash it you owe 100 percent of the debt.
Very bad idea.
http://www.pregnancy.org/article.php?sid=2735
2006-11-27 15:17:52 · answer #1 · answered by Sir J 7 · 2⤊ 0⤋
Don't listen to all those nay sayers,I can't think of any problems that might occur from "HELPING OUT "a friend or family member! lol I mean what could POSSIBLY go wrong!Your best bet is to just buy a car for cash and put it in their name and pray they pay you back or just kiss the money good bye in the first place and keep them as friends -if you become the "LENDER" human nature will transform this into an advisarial relationship and your friendship is doomed or if they ruin your credit "ACCEDENTLY" cause they really MEANT to pay ,they just had a tough month and cigarettes and lotto tickets came first,same outcome -if you can afford it JUST GIVE THEM a cheap car -if thats not good enough oh well you will get over it but if you go the credit route it will change things forever.
2006-11-27 19:57:10 · answer #2 · answered by badmts 4 · 0⤊ 0⤋
Warning! Warning!
Do NOT do this deal! If the other party has credit problems it's for a reason. The time to break this endless cycle is NOW. Please do not be an enabler. These people must learn to handle their own destructive behavior and the first step is to eliminate debt. Give them a thousand dollars if you must (it will be far cheaper in the long run) and tell them to earn another $1500.00. Then they can buy a car that will last for at least three years and not owe anyone. If you really want to help then push them out of the nest.
2006-11-27 16:50:14 · answer #3 · answered by Anonymous · 0⤊ 0⤋
You may want to check with your local DMV. In some states that is illegal when it comes to financing, that is called a straw purchase. Banks don't want to be involved with those types of transactions. If you finance a vehicle in just your name and you try to refinance or have the person that you are buying the car for to get a loan will prove to be difficult. Unless a person done something drastic to change their credit picture in a 12 month period it is highly unlikely he/she will be able to have their name added at a later date to try to get your name off of the loan. If you are co-signing for your son or daughter to help them get established then it is a calculated risk that most parents do but if you are just out right buying a car for someone else that have very bad credit then it is not a good idea. If that person don't care about their own credit, how can they be trusted to protect your credit. 9 times out of 10 if a bank or lender don't want to extend credit to that person then you should seriously think about putting your neck out there
2006-11-27 16:16:51 · answer #4 · answered by A Dub 2 · 1⤊ 0⤋
Don't do it! If your name is on the loan and you are one of the registered owners of the vehicle you will be liable for anything that happens. If they default on the loan the bank will come after you. If there is an accident, you will be considered a responsible party. Its not worth it, JUST SAY NO!!!
2006-11-27 16:10:00 · answer #5 · answered by Anonymous · 1⤊ 0⤋
Don't do it! You will almost certainly be sorry.
One thing to consider is, if you should decide to refinance your home, this will be a liability they will consider YOUR debt.
It's on YOUR back as far as lenders are concerned.
2006-11-27 15:24:52 · answer #6 · answered by Trump 2020 7 · 1⤊ 0⤋
Save yourself some health and do not do it!!!!!
2006-11-27 15:26:56 · answer #7 · answered by Просто Я 3 · 1⤊ 0⤋
one word.... NO
2006-11-27 15:23:43 · answer #8 · answered by Rich K 2 · 1⤊ 0⤋