what do i need to fill out when i take over the monthly payments of my friends car that's still in his name?

Question

he owe's a small credit union $7K for this car, i'm just going to take over the payments on the car, but it will still be in his name till i finish paying for it. Then he gives me the title and we transfer it to my name. The reason i can't get the loan transfered into my name is cause i owe that bank money already from an old checking account. what do we get notarized? and how do we handle the full coverage insurance issue? does he keep it in his name and i pay him? cause for him it's more expensive, but for me it's cheaper, but he can't take the insurance off cause the insurance company will alert the loan bank. does he just add me as a driver? but then how much do i pay him monthly for the insurance? someone help!

and i have already checked 27 other loan companies and nobody will loan me money, even the online ones. yes, he does have the rights, but i have the car, and that's why we are notorizing documents to prevent any possible manipulating by either party. i've known him for 25 years and he's not going anywhere, neither am i, so help with the documents if you can.

Answer 1

This plan is shaky for a number of reasons. But if you do proceed with it, then be sure that the whole agreement is detailed in writing, with both of your signatures notarized.

As to insurance, about the only option would be for him to add you as a driver. If you've got full possession of the car, then it would seem reasonable for you to pay the whole cost of the insurance.

Again, this plan isn't a good one - leaves you both wide open to problems over it.

Answer 2

Just because you can't get the loan transferred does not mean that you should not investigate other finance companies. It is dangerous for you to make payments on a vehicle you don't own, because your friend has all the rights of ownership. And you have nothing.