i'm buying a car from a friend and can't get approved for a loan. he has a loan out on it though. I was thinking about it and could i just start paying the payments with money orders and leave the loan in his name. if the title is transfered in to my name and i have a signed and noterized document from him. would the car still be under my ownership or could he come back and take the vehicle back? sorry if this doesn't make sense let me know what you think. thanks, Drea
2007-04-05 10:45:13 · 3 answers · asked by imrighteousbabe 1 in Cars & Transportation ➔ Buying & Selling
Two problems with this plan.
First your friend would be crazy to agree to this. He has all the liability, but not the car.
Second, in order to transfer title, the lienholder (the lender) has to sign off too. They won't be doing that, unless they agree to let you take over the payments on the loan. If you can't get approved for a loan, that doesn't sound likely.
2007-04-05 13:07:27 · answer #1 · answered by Uncle Pennybags 7 · 0⤊ 0⤋
Bad idea for two reasons. By leaving the car in his name and you making the payments, he can come back at any time and take it. If you have possession of the car and are in an accident, he can be held responsible. Then there's the matter of the insurance.
2007-04-05 11:01:27 · answer #2 · answered by notadeadbeat 5 · 0⤊ 0⤋
most banks keep the title until it's paid for and unless it's some famiy member, i wouldn't take over the payments and if it would be just as bad for the other person because if you stop making the payments or you're late it will affect that other persons credit.
2007-04-05 11:10:58 · answer #3 · answered by Melissa T 3 · 0⤊ 0⤋