"Taking over payments"- How does it work
"Taking over payments"- How does it work If this is the wrong place please move post accordingly. I didnt see any better option.
Allright heres the rundown. I have a Formy im wanting to buy from a good friend. I have the money but dont wanna drop it all cash to buy the car...one to build my credit, two to save some cash. Anyways i was wondering if anyone here could explain to me what exactly goes on in a "take over Payments" deal.
What goes on w the title?
What a bout keeping the insurance on it- does it have to be original owner?
In what ways is it legal/ or non legaly binding?
And any other pointers/ subjects you can add!
Any help will be greatly appreciated.
Deg
Allright heres the rundown. I have a Formy im wanting to buy from a good friend. I have the money but dont wanna drop it all cash to buy the car...one to build my credit, two to save some cash. Anyways i was wondering if anyone here could explain to me what exactly goes on in a "take over Payments" deal.
What goes on w the title?
What a bout keeping the insurance on it- does it have to be original owner?
In what ways is it legal/ or non legaly binding?
And any other pointers/ subjects you can add!
Any help will be greatly appreciated.
Deg
There is no real way to take over payments. You have to finance the car or purchase the car and get it out of the persons name. I work at a dealership and people actually bring this up about friends going to take over payments on their car and its just not possible. Someone has to pay off the loan you have. The bank may not want to do business with the person taking over the payment. Maybe your credit would call for higher interest or maybe they wouldnt accept you. Plus there are DMV reasons behind. Years ago I believe you could get away with doing this, but now its not possible.
Can you put a good chunk of money towards the car and then get money from a bank or a loan house or something???
Can you put a good chunk of money towards the car and then get money from a bank or a loan house or something???
Well i will have the money in cash but i dont want to pay that chunk of change in cash. And my credit is no good these days....so i dont know that i could even get a loan in the 5k range. Thanks for the input though.
If your credit is no good, then a bank isn't going to want to deal with you unless you have excellent collateral. The best thing to do is to take the funds you were going to purchase the car with, put them in a savings account or even Better a CD at the bank you want to borrow from. Then using that CD, you borrow money against it. Any bank will lend you money if they are using your money as collateral no matter how crappy your credit is, its a no brainer.
The rate they pay you on the CD will be say...5 percent, they will charge you say 7% on the loan. So you only have to pay 2 percent interest becasue of the offset, and you build credit.
This is only a good idea if you have bad credit and want to help yourself get it back to good. Other wise you just pay for the car outright and not pay the bank any interest.
The rate they pay you on the CD will be say...5 percent, they will charge you say 7% on the loan. So you only have to pay 2 percent interest becasue of the offset, and you build credit.
This is only a good idea if you have bad credit and want to help yourself get it back to good. Other wise you just pay for the car outright and not pay the bank any interest.
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I dont mind it being moved but "Newbie tech" 1. Im not a Noob. and 2. I would think somewhere in the sales dept. would get more of the info im looking for..... but u being the big powerfull moderator and me being the "NOOB" i guess itll have to stand. 
anywho thanx for the advice again to all who helped and to any Noobs that read this and might have some input post it up please
anywho thanx for the advice again to all who helped and to any Noobs that read this and might have some input post it up please LS1 Tech Stories
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