I'm selling my car but still owe money on it, can the buyer do take over payments on the car?

Question

i should probably add that the person taking over payments is in the military and is doing an allotment where it comes right out of his check before he gets it each month, so it is guarenteed that it will get paid off!

Answer 1

OMG..... no, no, no.

Never, never, never let anyone take over the payments on your car, because the loan is still in your name.

This is how it works.... he get's a loan, he gives you a check, you pay off your car, anything left over you put down on another ride.

Answer 2

No they will not make payments.

The money from the trade goes towards the car you are purchasing.  You then get another loan or have your current loan refinanced to add the money needed for your new car.

This all must be arranged previously with your lender.  Because you have a loan for this car, the lender has most certainly placed a lien on the title.  As long as there is a lien on the title, the car can not be sold or traded without the lenders approval.

Answer 3

Only if it is approved by the Bank or whoever holds the note.

Answer 4

The only way this will work is for your friend to apply for a loan with the same company you have the car loan with.  He/she has to qualify for the loan and then it's transferred to him "legally" and it's now "his/her loan" and your name is off of it.  

He can't get insurance on a car he doesn't "own legally" so he's driving your car with no insurance.  He wrecks it he can walk away from it and you're up the p**p creek with nary a paddle to your name, with ruined credit rating, and a loan "you still have to pay off".   You can't even take him to small claims court since you were skirting the law in the first place.

DON"T DO IT!!!!!!!!!!!!

RoyG

KC

Answer 5

Not unless its approved by whoever is holding the note.