Can I "lease/finance" my car to somebody else when I still owe money on the loan?

Question

I have a car that I am trying to sell but am having a hard time doing so. I've had several people contact me about wanting to finance it from me, but I am unsure of what my options would be with this. If I were to finance the car through them, take a "down payment" from them, and then they make monthly payments TO ME which I in-turn give to my financier, what would I need to do to cover myself and absolve myself of any repercussions?

Obviously I run the risk of the person not making the payments, but could I draw up a legally binding contract saying that they would pay X amount on X date each month? Would it be legally binding despite me still owing on it to Toyota? Would I need to get it notarized? I would definitely do extensive checking about the person that would be making the payments and all that, and they would have to carry insurance on the car, but I am sure there is more to this. Any advice/suggestions would be appreciated. Thanks.

Answer 1

i would leave the financing up to a federally backed institution who is setup to do this. Also, you usually won't find a buyer who would purchase something with a lein still existing.

Answer 2

Yes.. Actually This is what I would do: I would lease a car to some and tell them to pay $200-$300 more than what you have to pay, and when they give you the payments, just forward that to the financier.. I dont think you could legally give the car to them until the money is completly paid.. Well depends on how much you owe.. If you owe less, you take a down payment to pay off your loan..

Answer 3

i would not let someone make payments to u, when u still owe on the car. suggests to them to take out a car loan from their bank. they can give u the cash, which u will use to pay it off. and they will make monthly loan payments to the bank! this way u dont have to worry about whether ur gonna get stuck payin for a car u dont have!

Answer 4

Try this site. It's an entire page dedicated to having other people takeover your lease payments.

http://www.leasetrader.com/

Answer 5

There are other repurcussions to think about too like...who is going to pay the car insurance?   what if they stop paying the car insurance?    what if they wreck the car and kill some people and the car is still in your name so you could be sued and lose everything you own.   I wouldnt do this.    If you have a Carmax in your area I would go there and get an appraisal and see if they want to buy the car from you.   They gave me a fairdeal on a car that I didnt want anymore.

Answer 6

Someone else can take over your loan payment (not a lease), but they have to be approved for the loan first, just like anyone getting a new loan.

Answer 7

I have met this kind of problem before,here is the resource I found useful.http://car-insurance.easyideas4u.info/ca...

Answer 8

Have you read the legally binding contract you signed already? NO, you can't do that.  You can probably arrange a loan assumption from you lender to your prospect, but that is at the discretion of the lender