Fair deal? I'd give my car to sis who would assume my car payments, and I in turn would purchase new car.?

Question

I have a 2005 AWD Pontiac Vibe in great condition. Problem is, I am a mile-maniac, and my two and a half year old car has 65,000 miles on it. I owe $8,000 on it, and half way through my loan pay-off. (It was worth $22,000 when I purchased it).

Would it be fair to simply "give" the car to my sister, as she will assume the remainder of the payments, so that I, in turn, have the ability to purchase a newer, less mileage car? Or based on age and remaining payment on car, would you say it's worth more than the loan amount and that she should give me cash too?

Answer 1

Mixing business and family is usually a recipe for disaster. If you want to help your sister, sell the car to her for the $8K you owe on it. If she doesn't have the cash she can try to take out a loan. That way she gets a deal by paying under KBB, her credit will improve, and you can get a new car. Keeping the car in your name will make it harder for you to buy a new car because the bank will count it towards your debts (from their perspective you already have a car payment, so you'd have less money to spend on a second car note).

Good luck!

Answer 2

The blue book value for your Vibe for a private party sale - see kbb.com - is more than the $8K payoff. But what's fair depends on what you and your sis agree on. If she really wants the car, and you don't much care either way, then maybe she should give you some money in addition. If you really want a new car, and she's pretty much taking the Vibe off your hands, then maybe just taking over payments is reasonable.

Answer 3

Are you talking about her going and getting her own car loan? Or would it remain in your name?

What happens if she doesn't make the payments and the loan is still in your name?

What is the Kelly Blue Book value on your car with your mileage and extras?

Not enough info to help you.

And what you paid for it has NO bearing on it's present value. As soon as you drove away from the car lot it lost 10% or more of it's value.

Answer 4

Why don't you trade it in. Kelly Blue book (www.kbb.com) said it has a trade in value of 9800. If you sell it yourself, you could get up to 11,000.

2 problems I see here.

1. You will still have this car on your credit report
2. What happens if your sister doesn't pay or pays late. This will hurt you.

I suggest you trade in the car or sell it outright. You will make more money anyway.

Let your sister buy here own car. DO NOT CO-SIGN. If a car dealer will not give your a loan, then this should tell you that she can't afford it.

Answer 5

the loan would still be in your name and if sis is late with a payment - YOUR credit rating will suffer, not hers - sell it to her and let her get her own financing - chances are the car is worth less than the loan balance, not the other way around

Answer 6

You could check the blue book value....But, being that your sister is trustworthy to take over the payments, and being a family member...I would say to just charge her what is due on the car!...I did a similar deal for my sister years ago and everything worked out just fine!
Good Luck!

Answer 7

You would need to call your lender on the car, because she can't 'take over' the payments unless she credit qualifies.

If you are going to leave the loan in your name, but SURE to check every month via phone to make sure she sends in the payments...better yet, have her send them to YOU that way you can make sure the payment gets made every month.

Answer 8

Unless you can get her name on and your name off the loan contract, you and only you will still be responsible for making the car payments if she fails to make them for you.

Answer 9

it is a good deal if you are sure your sister wont miss any payments.
good luck