How do you have someone take over your car payment

[BEER4FOOD]

My wife wants to "sell" her car to her sister..in reality all we want to do is let her take over the payments, we dont want any money from her...can this be done and if so how? We have 0% financing on this car and in order to do this deal she would need to keep that rate and the same payment....??

 

[accuratehorn]

Probably not legally. An informal arrangement might be set up, but you would be liable for the late payments. First, call GMAC or whoever financed the car, and ask if it can be transferred.

 

[BigWill]

She needs to have good credit to do this.

Essentially, she is buying your car, and getting a new loan for the balance that you owe.

 

[NickDanger]

You (or your wife) have a legal contractual realtionship with the car finance company. Unless they agree to substitute SIL for you (and they probably won't), anything you do with sis can't change your obligations to finance company. You still have to insure it and pay for it and, quite possibly, not give it to sis for her unfettered use.

Of course, you won't tell finance company about your arrangement. The difficult thing about your plan is that it makes for huge potential for acrimony in the family. Let's say that sis doesn't pay or doesn't insure (and she has no insurable interest in the vehicle). YOU get the credit ding. Let's say that she wrecks the car. The insurance company has a legitimate beef with you that they didn't agree to insure her as the driver. You see where this is going?

It's all fine if nothing happens, but if the deal doesn't go smoothly, you are in deep mierda.

 

[suttree]

Sell it to her for the amount of your note, which would equate to her taking over the payments. You can get a quote by calling the 800 number on your bill. Have her go to her bank and arrange a loan. Any other way and you are begging for trouble.

Of course, if you are upside down on the car, she is getting screwed. If you have equity, you are getting screwed.

 

[BEER4FOOD]

I am upside down on it right now..might have to take a 1,500 loss...but even that might be worth getting out from under it rather than keep paying on something we dont want....

GMAC can do it but like you said it will be much better for her to finance through her bank or credit union rather than getting ripped through them and their high rates..