Our friend is willing to take over our 480 month payments, we never use the car and he is starting a family. It is a new 06' car so we can't sell it we financed it and we traded another car so we are upside down. What should we do as far as insurance cancel it? Can we make a bill of sale? He can't put it in his name yet, but maybe in a year or two., Any advice greatly appreciated.
2006-12-04 15:59:37 · 7 answers · asked by Vanessa M 1 in Cars & Transportation ➔ Buying & Selling
I agree with COWBOY BILL. DON'T DO IT. He wrecks it, YOU can get sued and loose your insurance. He stops paying, YOUR credit is ruined.
You think it's expensive paying for the car? Wait till you have to pay and NOT have the car.
Advice: 3 choices: 1) Bite the bullet and keep and drive the car. 2) Sell the car and get a personal loan to pay the upside down part. 3 Let it get repo-ed and ruin your credit and a lawsuit from the lender to recoup the losses.
2006-12-04 16:48:25 · answer #1 · answered by John L 5 · 0⤊ 0⤋
As long as the title to the car is in your name, you are completely responsible for anything anybody does while driving that car. Your friend is not on your insurance policy, so if he gets into an accident you will be totally financially responsible for all legal fees, medical costs, lawsuits, etc. If you cancel the insurance, you're still responsible, plus you're breaking the law because then you're allowing YOUR car to be driven without insurance. If he breaks the law while driving your car you could very well be arrested as an accomplice. It does not matter one bit whether he's making payments on the car; if it's in your name, the car is legally yours and you are the one who's going to get slammed. Do Not Do This. Either sell the car outright (with a legal bill of sale and a title transfer and all) or keep it yourself, but DO NOT do anything like what you're talking about.
2006-12-05 00:15:15 · answer #2 · answered by Anonymous · 0⤊ 1⤋
I would go to your local office supply store and see if they have some type of contract that you guys can sign. I would have it notarized. Make sure each and every month the payment is made, it is your credit that will be affected. Maybe call your local free lawyer service and ask their advice. Just like a loan to a friend, money does change friendships, so be careful, but clear and firm. I have to add something here after reading some answers. You, just like a finance company can require them to have their own insurance. You are not responsible for their accidents. I just assumed you would have proof of insurance for your vehicle. The only way you are connected to that vehicle is by loan only, call you loan company and ask exactly what you need to do this legally.
2006-12-05 00:12:30 · answer #3 · answered by doris_38133 5 · 0⤊ 0⤋
Well remember that you do not own the car the financing company does.
My suggestion is to see if your "friend" can get a loan to pay your loan off. If not it will be a tricky one. You can not change the registration until the car is paid off so it will remain in your name. Second if you cancel your insurance and something happens to the vehicle (stolen or accident) whether you are driving or not you will be held liable. A bill of sale will not work since once again you do not own it.
2006-12-05 00:09:49 · answer #4 · answered by It's been a while........... 3 · 1⤊ 0⤋
Advice: DO NOT DO THIS. You are on the brink of losing your friend, your money and your car. If he cannot buy it outright he has no business dragging you down with him. You will be FAR better off borrowing the difference on the payoff and selling the car. Legally, who the heck knows? If he fails to pay his insurance premiums and injures someone in the car you will likely be held responsible for ALL costs involved -- plus you will STILL have to pay for your totaled vehicle. All the forms and contracts in the world are worthless unless you actually own the car, which you do not. Again -- DON'T DO IT!
2006-12-05 00:09:53 · answer #5 · answered by Anonymous · 0⤊ 0⤋
I Agree with the 1st person & another thing the insurance has to stay in your name due to the car being in your name your friend will have 2 cover that as well but if he gets in an accident they'll come after U cause you still own the car.Good Luck
2006-12-05 00:08:19 · answer #6 · answered by sugarbdp1 6 · 0⤊ 1⤋
well i suggest going to a public notary, you can make a contract with the conditions that when your friend finishes paying the car you will transfer the title to him or her. and you must also think about stating that if he fails to make the payments you could cancel the agreement, because your friend is using your name(credit may get harmed). just think about the consequences.good luck
2006-12-05 00:04:57 · answer #7 · answered by mariazul13 1 · 1⤊ 1⤋