Is it a smart idea to let someone (a family member) take over the car payments on a car that you can't pay for

Question

I have two cars. One is a 2002 Toyota Camry that I totally love and will be through paying for in May of 2009. The other is a 2004 Malibu Maxx that I don't like so much. I got it for my husband in my name. I Then we split. Now I am stuck with the car. I am upside down in the car and can't sell it for what it is worth. Since we are separated...I am having a hard time paying the bills. Now a relative of mine wants to take over the car payments on the Malibu.

Is it safe or even proper to allow someone to take over the car note...even if we get a letter notorized with a notary republic saying that she will pay the car note. Plus she will pay for insurance..as she will be added to my insurance.

Is this too risky?

Answer 1

First, talk to your lender for the car loan.  See if they have a program to have someone take over the loan for you.  If so, have that person apply to take over the loan.  If the person is not approved to take over the loan, then they probably don't have good credit.  If they haven't paid bills before, they aren't going to pay them now.  Just watch Judge Judy, Joe Brown, or any of the others to see how many relatives get sued for not paying a debt a relative talked another relative into getting.  

If you do decide to let the relative take over the loan, pay a lawyer a one hour fee to draw up a contract between you and your relative.  You can have a notary public (not republic) notarize that the two of you signed an unofficial contract for her to pay, but your unofficial contract might not meet the legal guidelines of your state to pursue legal action if your relative quits paying.  

Also, is the relative going to give you the money and you pay the lender, or will she make the payment directly?  

If you truly trust your relative and she trusts you, it might be a win-win situation.  

Answer 2

I would talk to your lender and see if you can get them to put your relative on the note and take you off. I would definitely sign a contract with your relative giving you the right to repossess the car if he or she doesn't make the payments.  

Answer 3

No, I would get a second job first.  

Answer 4

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