Need help, friend wants to take payments over on my car

[JohnnyDrfiter22]

I have an 05 VW and I was looking to sell it, while my friend wants to take over payments. Is there a form or way I can Put her name on and take mine off?? Someone told me about a form called "Change of Assignment" looked it up and called my creditor and all they said was an equity form which adds them to it. Any help regarding this would be great.
Thanks

[Slammed180]

Tell her to apply for a personal loan for the cost of the car.
Then pay you out.
Easiest way, IMO.

[SimpleS14]

Tell her to apply for a personal loan for the cost of the car.
Then pay you out.
Easiest way, IMO.

Agreed.


The only way this would not work if she can't qualify for a loan. If she can't, you might want to reconsider even letting her take over the payments...

[JohnnyDrfiter22]

Shes in the military, been in for a few years just re-enlisted. Been in japan her whole career so never needed a car, or credit, dont think she can get loan at all.

[Slammed180]

Then how is she supposed to assume your car loan with no credit?

[Agamemnon]

The bank will run her credit. If she qualifies, then she'll more than likely get a different interest rate and different monthly payment than you.

If she has no credit, then the financial institution will more than likely deny her.

[SimpleS14]

Shes in the military, been in for a few years just re-enlisted. Been in japan her whole career so never needed a car, or credit, dont think she can get loan at all.

Never know unless she tries. Does she have an account with Navy Federal?

I believe they will offer her a loan since it's tied to collateral (the car).

My brother was in the Navy and had 0 credit history, but was able to get a car loan through Navy Federal.

[raz0rbladez909]

tell her to get a pre approved loan from navy federal, when i purchased my first car i had no history of credit and was able to get a 6.75% interest rate, they will let her know if she is approved within 1-3 days. that would honestly work out best for both of you:love:

[DALAZ_68]

friends and money are a good mix...atleast from personal experiences...GL

[ANVIL]

military people get qualified pretty easily through their branch. tell her to go apply for the loan

[fliprayzin240sx]

Usaa ftmfw!!!

[TheWolf]

how this works and how it fails....

What you are trying to do is change who's financially responsible for the car.

By making her qualify for a seperate loan. She will "buy" the car from you and then finance it through her own institution. She will have to pay salestax on the amount. This usually puts it out of "good deal" range as you probably owe to much anyway. More later

If you try to switch who's on the bill for payments the bank that owns your car and that you make payments to must qualify her. She will likely get a different interest rate and payment. Probably higher because it's a 5 year old car.

Things that come up in these "take over payment" schemes. I'll assume you didn't buy it new. So your not going to give her an 05 VW that has less than a year of payments on it left. That would be stupid. I'll assume you bought it 3 years used off a car lot. If you bought it through a person to person exchange and got a really good deal on the price. You might come out nicer. The car may not be worth the balance that's owed on it. There's a good chance you personally are upside down in the car unless you've got some mondo cool interest rate. Higher than 8% and your probably upside down.

This presents the problem. She wants to buy a 05 VW for the payoff on your loan. The bank will give them leeway but most likely won't loan out more than a thousand over what they're worth. Or they'll make her carry gap insurance.
Both deal killers.

Then there's always the "we're friends why don't I just make the payments for you and drive it" thing. NO!!!!!!!!!!!!!!!!!!!!NOOOO!!!!! NOOO!!!!!!!!
You will exhaust all of the above and this will come up. The answer is NO. 100% of the time. NO

You are responsible for the car until the last payment is made. Always. She gets drunk and plows into a family of 4. It's on you. Wraps it around a phone poll and quits making payments. It's on you. Car shits a gearbox and VW tells her that it's 6k for a tiptronic vw bug tranny. (true story) NO one wants to make payments on a car that isn't running. They'll create reasons not to. Either you lied about it's condition. You gave her a bad deal. You weren't a nice friend. You didn't want to be BF/GF with her. But it always ends up that you're an asshole and that's the reason she doesn't need to pay. There's no logic. No sound agreement. No showing the bank how you two had scribbled something down on paper that said we're best friends forever and she writes the checks.

The reason someone wants to "take over payments" is because the payoff is usually more than the value of the product. I know you walked into this openly but many less than altruistic people use this to unload their crap that they're upside down in. Mostly motorcycles and jetski's. There's a ton of "Yamaha R1.. Great Shape Take over Payments". And it's some R1 some navy boy beat the snot out of that's worth 7k on a desperate sunny day but has 10k owed on it because he financed the bike+helmet+motorcycle leathers at the dealership for 16%.

[DALAZ_68]

Then there's always the "we're friends why don't I just make the payments for you and drive it" thing. NO!!!!!!!!!!!!!!!!!!!!NOOOO!!!!! NOOO!!!!!!!!
You will exhaust all of the above and this will come up. The answer is NO. 100% of the time. NO




pretty much a staple rule IMHO

[JohnnyDrfiter22]

Thanks The Wolf you were very helpful. Im not upside down i just want a different vehicle, she needed one thought it would be a good idea, definately not!

Thanks for all those who responded.

Banks should come up with a proporsal/form so people can do this in a legally binding manner