What are the drawbacks of taking over somone else's car payments?

Question

I have a friend that I work with and he wants to sell his Jeep Wrangler. He does not want extra money for me to take over the loan. The money left on the loan makes the jeep at "bluebook." I am curious what is really the risk? I would get the paperwork put in my name, title, loan agreement,etc.

Answer 1

Depends on what his payment is. You might be able to get the payment lowered depending on your credit. You might want to do some investigating before you seal the deal.

Answer 2

Yaker, it sounds as though you're already planning on purchasing the car from him since you mentioned the paperwork will be in your name. There is no way to put such paperwork in your name without purchasing the vehicle with either cash or by arranging your own financing to pay his loan off.

As Bostonian said, you cannot assume an auto loan. You can, however seek a loan of your own, to purchase your friend's vehicle at his payoff amount.

If you did decide to just take over his payments, there will be many dangers. A. It's not legal B. It will in no way help your credit, but it could very well hurt his if you miss a payment C. Getting tags and insurance will be a nightmare if the vehicle is not in your name.

Answer 3

The major drawback is that you can't legally do that. Unlike some home mortgages, auto loans are not assumable. You'll have to get your own financing for the vehicle.

Answer 4

hi..not many drawbacks unless your credit keeps you from having a low payment and a good interest rate.You don't have to go through the same place the car is financed through now.The only thing you need to do with them is file appropriate paperwork and have your financial institution send them a check.Good luck.

Answer 5

Find out if there are any liens against the loan or the vehicle title...