How can someone get out of a huge car payment by getting someone to take over payments?

Question

My cousin just got married. Her new husband and her are trying to get their own place. He bought an infinity that cost them $412.00 a month. The insurance is another big bill. She is a full time student and they share the vehicle ,so she cant work at this time, until shcool is finished. They are really trying to get out of this huge debt. They did not anticipate getting married when he got the car. How does he legally get someone to take over payments. I see it in the paper all the time. How does one go about this without s******g up their credit? They know they are starting out on the wrong foot. They are young and want to be able to start off without this huge debt. They are looking to get rid of this $16k debt plus inurance costs and get a used car. Please help with some suggestions.I want to advise them on where to go from here.

Thanks

Answer 1

Can' be done. The original owner is still responsible for the payments. The original owner cannot transfer title. The original owner must maintain insurance under his own name. The car needs to be sold in a normal sale. If there is an amount due on the loan because the sale price is lower, it will have to be paid before title can be transferred.

Answer 2

In order for someone to take over the payments on the vehicle they need to contact the company to find out the rules regarding this.  In most instances once they find someone that wants to buy the vehicle, that person will have to go and get financing from somewhere on the car and the bank that they receive the financing from will pay off the bill that your cousin owes and the debt now becomes that of the new owner.  Your cousins credit will not be affected at all by this.  It is just like selling the car outright except you are not asking for any money for yourself only that your debt be paid off and the new owner gets a lower price than what you bought it for because you don't owe as much.

Answer 3

There are 3 ways to do this.

First they can sell the car and then take out a loan if there is a difference.

Second they can find someone who wants the car and that person can get their own financing.

Third They can find someone who wants to take over the payments, draw up a written agreement and have that person pay them so they can pay the lender this way the lender doe's not know and they make sure the payments are made on time.

I have done number 3 twice myself the only thing is if they choose that route your friend will have to remain on the insurance or the lender will find out.

Answer 4

Go to Edumunds.com and find out what the car is worth.

If they owe more than it's value - it will be hard to sell.

Otherwise they can simply sell it for what they owe (or more if they can get it).  The check goes to the note holder who releases the lien/title.

Or the buyer can take over the loan/lease for a transfer fee or negotiate a new loand with a new rate.  They must qualify of course.

The current owner needs to talk to whomever is financing them and findout the requirements/fees for the loan/lease transfer.  They will also tell them what the current buyout amount of the car is.

Answer 5

sell it or try to trade it in.