I have a car that is financed but it's tore up. I owe two more years on it. It will cost me two grand to get it fixed...it will also take me over a year to save up this money. I can't stand the fact I am paying a note on this car and not being able to drive it. My brother wants to take up payments on the vehicle. He can have the money to fix it in a couple months. Once paid for of course I would give him the title. Is it illegal to do this, if not do you think it's a good idea?? Any suggestions. Thanks.
Answer:
It is very legal. This can be done on cars and houses and so forth.
This is a great idea in cases where a person wants to protect their credit. If your brother wants it and is willing to take over payments by all means that is great.
This will keep your credit in tact and you will no longer have a car that you don't want.
it's not illegal to do this, as long as the payments are being paid it is OK. you aren't really selling it to him he is just taking over the payments.
I don't think so as long as he takes up the payments.
It may not be if he is making the payments.
First can you trust your brother? Second, aer you going to fall behind on your monthly payments? A lot of people "take over Payments" but to sell the car for a profit, I think that there may be some rules on that. call your title holder (the bank who you ahve the loan with) and ask them this question, they will know the answer
Sorry, but the details are somewhat confusing and inadequate for "legal comments." On face value, whatever is stated by you seems possible, informally speaking.
what you need to do is create a contract between your brother and you that says that he will take over the payments; once this is signed he is legally saying that he is going to take over the note.....now if he defaults on the payment at anytime you are still responsible for that note. This will also include the insurance because you cannot change the name on the title until the note is paid for....in essence your car is collaterall for the note....so no you cannot sell it, because if you default then the company would not have a car to repo and try to make their money that way......also, these type of dealings between brothers is not a good idea cause it could cause future problems with your relationship...for example if he forgets to pay and you have to....see where I am going with this
Oh please don't sell it to a relative. Doing business with friends or family never turns out good. Some car dealers will give you more than the car is worth if you buy one of their cars. If you can find a car with a payment you can handle then you will be in good shape. You could always just try and sell the car on your own and pay the note off. It's not illegal to do what you describe however the first time the car doesn't start; are you ready to be blammed for the lemon?
No, it is not illegal to do that.
I think you have a great idea there.
It is illegal to sell something that is not yours...it is called Criminal Conversion. You would not be able to sell the car unless you paid off the company that finance. The company that financed your car has a lien on the car and there would be no way to transfer the title to him until the loan would be paid off.
The cleanest way would be for him to try refinace the car, but if it is really tore up, he may not be able to get enough to pay off your loan in fullm (because it is not worth that amount).
If your brother wanted to help you out and take on paying the payment when they were due, you could work out a written agreement between the two of you that might hold up in Small Claims court, but if he would default, you would still be liable for the full debt, not him.
If your brother has a lump sum of cash saving close to 85-90% of the current balance owned on the loan, your brother could approach the Creditor to buy our your loan at a reduced cost (because if the repo it and sell it at a loss, they will sell your Note to a collection agency most likely anyway).
Downside would be if he wanted to, he could charge the full amount of the loan and he would hold the title as lien holder.
Have to agree with the above poster...never a good idea to do business with a relative.
A girl that I knew in the same situation found a dealership that was itchy for business and took the car for trade for more than it was worth, found financing to buy out her old loan (minus the credit for her trade in) and her new loan and was able to get a decent car, but will be paying a hefty sum for the next 7 years because of it.
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