Buying a car from friend who still have loan on that car

posted 2 years ago in Finances
Post # 2
Member
3838 posts
Honey bee
  • Wedding: April 2017

Wait until he has paid out the loan and then buy the car. Do not buy a car that still has someone else’s loan on it, that’s a terrible idea. He needs clear title before he can give you clear title. 

 

Post # 3
Member
2706 posts
Sugar bee
  • Wedding: May 2015 - St Peter\'s Church, East Maitland, and Bella Vista, Newcastle

Don’t buy it.

Post # 4
Member
5370 posts
Bee Keeper
  • Wedding: July 2018

It’s not complicated, don’t buy it. 

Post # 5
Member
4522 posts
Honey bee
  • Wedding: November 1999

Moe1 :  Nope don’t do it. If he defaults on the car you’ve paid for and are driving, it will get repossessed. You will then be out $4000 and it will cost you money to pursue that through the legal system.

Save yourself the headache and go buy a car that you can afford and that you can own outright or go through proper channels and get finance for a car that doesn’t involve trusting a friend to do the proper thing .

Post # 6
Member
574 posts
Busy bee

Wasn’t sure if the law was the same in the US but as 

cmsgirl :  says he defaults, your car is taken. 

Post # 7
Member
4864 posts
Honey bee
  • Wedding: August 2013

Nooooo no no no. 

Post # 8
Member
6394 posts
Bee Keeper
  • Wedding: November 2009 - New York, NY

Don’t buy the car.

Post # 9
Member
4474 posts
Honey bee

Worst idea ever.

 

Post # 10
Member
6537 posts
Bee Keeper

Don’t do this!

Post # 11
Member
626 posts
Busy bee
  • Wedding: July 2017

This is not how it works. You cannot buy a car without the original title. 

Post # 12
Member
982 posts
Busy bee
  • Wedding: August 2016

Yeah I don’t think this is real. Why on earth would someone sell a car they still owe money on and still have the motivation to pay off the loan?

Post # 13
Member
9157 posts
Buzzing Beekeeper
  • Wedding: October 2013

he cannot sign the title over to you if there is a lein on the vehicle or you will now be responsible

Post # 14
Member
3420 posts
Sugar bee
  • Wedding: April 2017 - City, State

He legally can’t do what he’s trying to do. It won’t be able to be your car unless he pays it off first and signs the title over or signs the loan over to you with the title and you pay the rest of it off.

This is a terrible idea. Don’t do it.

Post # 15
Member
5121 posts
Bee Keeper
  • Wedding: December 2014

Not possible. 

The only way I could see where you could work something out would be to “rent” the car from him for a year and then when he pays off the loan in a year, he gives you the car. That said, if he decides not to pay the loan, then the car gets repossessed and you’re out your “rental” money and a car. I’m not sure if there is any way to draw up a contract to protect yourself in that case and I don’t know that it’d even be worth the hassle. You’re better off just buying a car outright from someone for $4k. I’m not sure why anyone would want to sell a car for $4k when they owe $12k anyway.

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