Friend not paying auto loan in my name

[unsure2012]

My "Friend" and I agreed that he would assume responsibility for my loan payments because I wanted to sell my car. He also agreed to transfer the car to a loan in his name, although with his credit I assume this will not be possible. For the past two years he has never made a payment on time and I have been making the payments and have eventually been paid 3 or 4 months behind schedule. At this point he has not made a payment in roughly 6 months and has stopped answering texts/calls. The loan/title/insurance is in my name only. Not sure what to do at this point, but I do not intend to make any more payments even at the expense of my credit tanking. What should I do? I assume he will not pay and the car will eventually be repo'd. If he does pay, I will receive the registration in about 4 months and at that point I assume I could refuse to renew it until he pays what is owed? Should I continue to pay and somehow get the car back?

 

[army judge]

Whatever you do, it's your choice. You are on the hook for the loan. Your agreement with the deadbeat is meaningless and useless. You can't even sue him, and hope to prevail. You have no contract, other than with the lender.

If he hits a $500,000 Ferrari and crashes into a $60,000,000 mansion, killing some billionaire's exotic goat, you're the one that will get sued.

If you don't care about your credit, you'd better wise up and get concerned about paying off a $2,000,000 judgment.

Call the lender, tell them what happened, ask them to repo the car. You'll still be on the hook for the delta after they sell the clunker, but he won't have you working to pay off his stupidity. Heck, if he gets injured in your uninsured car, he could even sue you.


Sent from my iPhone 4S via AT&T using Tapatalk

 

[disagreeable]

Or...

Have them repo the car, redeem it and drive it or sell it. You will need to pay off the loan.

 

[unsure2012]

As of today the payments are current. Should I consult a lawyer locally, or go file a police report? Nothing is in this person's name and I doubt he could quote the exact monthly payment. I would prefer to just take the car back now and sell it, than wait three months for lender to repo it, slaughtering my credit and continuing at risk of him damaging the car etc...

 

[disagreeable]

If you have a spare set of keys, based on your assertions, go pick it up. Do not break the law doing so. A parking lot at a store is likely best. Store the car or change the locks, while you sell it.

 

[mightymoose]

That's what I would do.... except I would take it right out of his driveway if I had a key. If no keys, simply show proof of ownership to a tow company and have it taken to wherever you like.
Get the locks changed and then sell it properly.