Taking Over Car Finance Payments
Posted on 05. Jan, 2009 by admin in Financing
While reading the classifieds, you may run across a car that you like and the seller is asking you to take over payments. There is a right way to do this and a wrong way. The proper way to take over car finance payments is to go to the lender and assume the loan. This will require a credit check and the normal application process that banks usually require.
If the seller tries to tell you that he will allow you to pay him and he will make the loan payment beware! The lender holds the title to the vehicle and when the loan is paid off, the lender will send the title to the person they made the loan to. If that person is unethical, they could simply keep the title to the car you have paid off for them and retrieve it from you. Not only would you have just bought them a car but you would have also done them the service of improving their credit score. Any time you intend to take over the finance payments on a car, go check with the bank that originated the loan and find out what their policy is for it.