Take over someones car payment

[S14Speed997]

Anyone familiar with taking over a car payment?

Background: A guy I know wants out of his car loan, will give me his truck for free, i just need to take over his payments. His loan balance is about $9,000.00.

I have been wanting to sell my paid off 97 240 for a couple months now, and after selling that, i would put $$ towards the balance of the truck.


My question is, would i need to get a loan for the $9,000.00, or do i pay this guy under the table, and get the title when i sell my car, and pay off the balance?? Any insight is GREATLY appreciated. I have been looking on Yahoo for hours.

[Phlip]

I have never financed a car in my life, so I am unsure for the most part, but I would THINK it to be an unwise decision for you to pay this guy under the table... I would think that there is something that the finance company/bank would be able to do to place the balance of the loan under your responsibility, thus transferring the lien on that title to a position where it will be released to YOU when the loan is satisfied... If you pay him under the table, you are basically buying him a car and asking to become the first Zilvia.net member to find themselves on peoples' court.

[S14Speed997]

I have never financed a car in my life, so I am unsure for the most part, but I would THINK it to be an unwise decision for you to pay this guy under the table... I would think that there is something that the finance company/bank would be able to do to place the balance of the loan under your responsibility, thus transferring the lien on that title to a position where it will be released to YOU when the loan is satisfied... If you pay him under the table, you are basically buying him a car and asking to become the first Zilvia.net member to find themselves on peoples' court.


lol...that is my main concern. I wouldn't want to payoff his loan, and he sends me a fruitbasket for getting him debt free, and a paid off truck to drive.

anyone else?

[fliprayzin240sx]

Im pretty sure your gonna end up dealing with the same bank he owes money to. Basically, theyre gonna change your name into the loan and have you make the monthly payments. Thats the simple one, or you can find another bank to loan me the same amount for much less interest rate.

I would not recommend you handing the money over straight to the guy since $9k is alot of mula. If for some reason he fails to make that full payment and doesnt get the title back fromt he bank....oooh i smell a lawsuit brewing.

[driftracer]

What I would do is see what bank he got his loan through. After that, I would see what the 10 day payoff on that loan is. That could be a few thousand dollars cheaper than the actual loan. I would get a loan for that amount and pay his loan off. Then, you would just make payments on the loan you took; several thousand dollars cheaper.

I'll give you an example.

He owes $9,000 over the next few years including interest.
The 10 day payoff on that loan could be about $7-7500.
Get your own loan for that amount and make payments on your own loan.

There is no telling what kinda of APR he's paying on his truck and it may be better or worse than what you get, so find out what is in your best interest. You also have your car which you will want to sell after you get your loan since you can use that as collateral towards getting a better deal on your loan.

Follow? Hope this helps.

[driftracer]

I have never financed a car in my life, so I am unsure for the most part, but I would THINK it to be an unwise decision for you to pay this guy under the table... I would think that there is something that the finance company/bank would be able to do to place the balance of the loan under your responsibility, thus transferring the lien on that title to a position where it will be released to YOU when the loan is satisfied... If you pay him under the table, you are basically buying him a car and asking to become the first Zilvia.net member to find themselves on peoples' court.


PHLIP brings up a good point. Make sure that this is done legally so that you actually have rights to the car when everything is all paid for. He should have a title for this car, make sure you go wherever you need to go to have this signed over to you when you present him the amount you need too to pay off his loan. Either way, talk to your bank to see what the proper steps are. Doing the 10 day payoff on his loan will save you a few thousand though, that much I know.

[S14Speed997]

What I would do is see what bank he got his loan through. After that, I would see what the 10 day payoff on that loan is. That could be a few thousand dollars cheaper than the actual loan. I would get a loan for that amount and pay his loan off. Then, you would just make payments on the loan you took; several thousand dollars cheaper.

I'll give you an example.

He owes $9,000 over the next few years including interest.
The 10 day payoff on that loan could be about $7-7500.
Get your own loan for that amount and make payments on your own loan.

There is no telling what kinda of APR he's paying on his truck and it may be better or worse than what you get, so find out what is in your best interest. You also have your car which you will want to sell after you get your loan since you can use that as collateral towards getting a better deal on your loan.

Follow? Hope this helps.


yea, makes perfect sense...This helps tremendously, thanks a TON, and thnaks to PHLIP too..

[drifther]

Someone I used to work with took over payments for her friends car for nearly 2 years.. Next thing I know "her" car is being repoed because her friend just wanted it back. I asked her if they ever signed anything or if the title was under her name and she said no. Idiot.. Just make sure you do things right!