Car issues with family members?

Question

I have a vehicle under my name that I could not afford to pay since I already owned another vehicle I am currently using. My step dad and mother decided to help me out and take ownership except the car is still under my name. Recently they have been behind in car payments for the past 2 months. They are always on time except until now. I know paying on time looks good on your credit and paying late payments is bad. What can I do about this situation? I can't afford the vehicle and I don't want bad credit. Their credit is not all that great to transfer ownership to them. I'm afraid one day the company I am financing it with will one day repossesse the vehicle if this continues.Any suggestions? Anyone had gone through this and what happened in your situation? Thanks!

I had a previoius vehicle taken out that my husband was using. We got separated and well I was left with the car. This is why I have two vehicles in the first place!

Answer 1

Auto finance is what I do for a living and the only way to avoid repossessions and your credit being ruined is to sell the car and pay off the loan.

As long as your name is on the loan, you and only you are responsible for making sure the payments are made on time.

Answer 2

Late payments will trash your credit. If you can't afford to pay the payment, consider selling the vehicle to someone and getting rid of the obligation completely.

Why do you have two vehicle payments in the first place? Did you use your credit for a friend or did you have one car and just have to have another one?

Answer 3

If it is in your name, then the lender will look to you for payment and it will appear on your credit report. Perhaps you can pay the interest or reset a couple of payments to give them time to get their finances in order. I would call the lender and talk with them. Most lenders are willing to work with you if they see you want to work things out. You may also want to try and sell the car if neither of you can afford to make the payments.