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My husband and I have a car that hardly ever gets driven. We have a lien on it and we owe more then what it's

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worth, we have a family member that would like to take over payments on the car but they are out of our state that we live in. We know that we would need some type of formal contract written about them sending us the payments so we can make sure the payments are made and on time, blah blah blah. But aren't sure about to make sure the car is also insured with him as a driver with him being out of state. Also about registration and getting the car inspected and such. Any help would be great! Thanks

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8 ANSWERS


  1. Sell him the car.  Sign a bill of sale.  Hand over the pink slip.  Etc.  Then have him register and insure the car the same as if it was purchased from a stranger.


  2. Contact the bank where you make payments and see if they will make a loan to your relative and take your name off the loan.  Even if they won't do it, your relative could apply for an auto loan with other banks.  Once your relative is approved, the new loan will pay off your existing loan and you won't have to worry about it anymore.

    I wouldn't recommend having the relative make payments to you.  Have them make payments to the bank and get your name off the loan an the title to the car.  Liability follows the legal owner of the car, so you don't want your name on the car title nor the loan.

  3. That's just nuts, and it won't work.  You would have to insure the car.

    If your family member is actually willing to agree to pay more for the car than it's worth, then he needs to take out a loan and pay you.  Once he starts to do that, he'll realize that he doesn't want to.

    Don't s***w your family member.  Sell the car to him.  Let him register it in his name.  Let him get his own insurance.  Pay whatever difference you have to.

  4. DO NOT do this !   If the family member wants your car, let them buy it from you.   If you allow this, you open yourself to more potential trouble than you could ever imagine.  Your lender will not allow someone to "Take over payments" anyway.

  5. if you are in the uk you can change the owner of the car legaly without changing anything with the finace company. However this only means that the loan attatched to the car is still your resposability and will be untill the end of the finance agreement. At the same time if the new owner of the car decides to trade it in after a shot time and a check is done on the car it will show outstanding finance and the dealership or new owner will not take the vehicle.

  6. Well to be straight forward about the options of a take over of payment would not be the best way to protect yourself in case of a major accident.

    Have your family member apply for a loan on the car with the lender. This will take you off the loan and keep you from any legal matters that could arise in case of a major accident. Your family member may also use the family transfer so they will not need to pay the resale taxes on the car.

    Best of luck

  7. If you do this you will end up in front of Judge Joe Brown on TV trying to get it payed for. I will never understand how you end up owing more than it is worth .

  8. Family member or not, I would definitely not proceed in this direction.  Even if you draw up a contract between the participants, you and your husband are still responsible for that vehicle & the original loan.  If anything did happen you would end up fighting 'family' in small claims & possibly in a different state.

    Remedy??  Have them take out their own loan for the vehicle.  This makes them responsible for insurance, inspection and registration.  The only thing that this can do is cause bad feeling between all of you.

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