someone wants to take over my car payment to buy my car.i have never done this or wouldnt do it myself.this guy needs a break but i dont want this to break me!!so does anyone know legaly how to do this and cover my butt>?
Don’t do this! Demand cash only. Figure out the total amount of your loan and ask for that figure in a single payment. If he doesn’t have the money on hand he must go to the bank or credit union and ask for a loan. He will make the same monthly payment to the lender as he does to you.
Note that the bank might refuse to write the loan because he has a serious credit problem. Well, if they won’t lend to such a person, aren’t you glad you didn’t either?
Will there be some cash coming your way, or are you just content to bail out of the car as you are upside down?
This deal may be advantageous to the buyer if you’ve been paying on the loan for a while. Early in the loan, MUCH of your payment went to interest and little to the principle. As the loan begins to age, more and more of the monthly payment goes to the principle. I took over another guy’s payments once when he was in danger of getting his car repossessed. All it took was the lender’s approval of my credit, and his signature on the title. If your state or the lending institution holds your title until the loan is paid off, you will need to be certain that your loan is satisfied with the lender so he can register the car in his name. NEVER sell a car without transferring the title. If he’d wreck it without registering it in his name, and was at fault, you’d be held liable for any damage he did.
Like others said don’t do it.
If the buyer does not pay you owe the payments, fees, and are also out of a car.