5 ways to get someone else to take on your car debt

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5 ways to get someone else to take on your car debt
5 ways to get someone else to take on your car debt
Anonim

Are you stuck in a car rental or loan that you no longer want to have? Many leases and some loans allow a new person to take on the remaining term, keep the vehicle and the associated payments. This person may be the person you are selling your car to, allowing you to avoid the transaction without making more payments. This is not simple and you have to be careful to make sure that everything is fully documented and in accordance with the company in charge of the rental.

Steps

Method 1 of 5: Determine if you can transfer a car loan

Get Someone to Take Over Your Car Payments Step 1
Get Someone to Take Over Your Car Payments Step 1

Step 1. Determine if it is a rent-to-own or a loan

You will undoubtedly already know this, but if you do not know for sure, make sure you are clear if you have rented the car or applied for a loan to buy one. If it is a loan, it means that you have bought the car and that you are paying fees to a bank, dealer or other financial institution. For its part, a rental is a contract of limited duration that will expire after a certain period.

  • If you have leased a car to own, it will generally be easier to transfer the rental to someone else than to transfer a car loan.
  • It is generally not impossible to make a direct transfer of a loan between two people, but there are alternative methods to achieve the same results.
Get Someone to Take Over Your Car Payments Step 2
Get Someone to Take Over Your Car Payments Step 2

Step 2. Review the loan agreement

Before proceeding, make sure you fully understand your contractual situation. Read well all the documentation you have regarding the vehicle loan. Also, if you have problems meeting payments or want to terminate the contract early for any reason, learn about your options.

  • There may be options in your contract where you are allowed to sell the car and pay what is owed, or exchange the vehicle for another and tailor the loan accordingly.
  • If you are unsure about your position, contact the loan company and consider seeking legal advice from an attorney.
Get Someone to Take Over Your Car Payments Step 3
Get Someone to Take Over Your Car Payments Step 3

Step 3. Talk to your creditors and find a buyer

Once you've established your position with the loan company, perhaps your best option is to sell the car yourself. You can then use the money received to pay the amount owed while the new owner takes care of making payments to the bank or loan company. If you opt for this alternative, you will need to reach an agreement with the loan company before proceeding with the process.

  • Until you pay off the debt on the car, the car will not be completely yours, so you will need permission from the loan company to sell it.
  • Taking responsibility for the sale will increase your chances of getting a good price compared to letting the creditor handle the sale.
  • Defaults and recoveries are costly for creditors, so they are probably more interested in alternative methods in case you cannot meet your payments.
  • If you have an agreement with a friend or family member, the process could be faster.
Get Someone to Take Over Your Car Payments Step 4
Get Someone to Take Over Your Car Payments Step 4

Step 4. Reach an agreement with the buyer and the loan company

The easiest way to transfer a car loan effectively between two people is for the new owner to apply for a loan with which he can buy the car from the previous owner. The latter will use the money received to pay off the debt owed by the loan company and the possession of the vehicle will pass to the new owner.

  • If you are making the deal with one loan company, this process could be more straightforward than dealing with multiple organizations.
  • With this, you basically transfer the loan and the outstanding payments to someone else.
  • Make sure to also transfer the title of ownership of the car to the new buyer following the respective laws of your country. Notify your insurer that the car no longer belongs to you.

Method 2 of 5: Determine if Leasing is Allowed to Own

Get Someone to Take Over Your Car Payments Step 5
Get Someone to Take Over Your Car Payments Step 5

Step 1. Review your contract

The first thing you need to do is make sure that there is an option in the rental agreement that allows the transfer to someone else. This varies depending on the company, so you should know what options you have. If you are unsure whether your rental agreement allows assumption of the rent, check with the leasing company or an attorney.

Rentals are generally easier to transfer to someone else compared to loans. If your car is only rented and you do not plan to buy it, the contract will be shorter than one for a vehicle loan

Get Someone to Take Over Your Car Payments Step 6
Get Someone to Take Over Your Car Payments Step 6

Step 2. Talk to the company that rents the car from you

After you have reviewed the loan agreement, you should contact the rental company directly to discuss your options and the possibilities you have. Before you can make a rental assumption, you will need permission from the rental company, so it is a good idea to contact them early on. Some rental companies can help you determine if an assumption is a suitable and viable option.

Some companies may focus on individual cases, so they may be able to help you with the process

Get Someone to Take Over Your Car Payments Step 7
Get Someone to Take Over Your Car Payments Step 7

Step 3. Consider your options

If you are having difficulty meeting your rent payments or your circumstances change and you decide to transfer the rent to someone else, you should take some time to consider all of your options, as well as the impact they will have on your finances and your credit rating. Ending a rental early can be very expensive, and defaulting on payments can result in the company repossessing the rental car. In addition to this, you can end up with a black mark on your credit history.

  • An alternative could be to simply sell the car rather than transfer the rental agreement to someone else.
  • If you have a negative equity, that is, the value of the car is less than the amount outstanding in the rental agreement, the sale of the vehicle will not cover the debt.
  • You may be able to work out a deal with your creditors that allows you to surrender the car, so check with the rental company first to find out what your options are.

Method 3 of 5: Find a third party to take over the rent to own

Get Someone to Take Over Your Car Payments Step 8
Get Someone to Take Over Your Car Payments Step 8

Step 1. Contact a specialized company

Probably the easiest way to find someone to handle your rental is by going to a company that matches people to rentals. In exchange for payment, these companies will help create a relationship between buyers and sellers. They will also act as an intermediary who can assist potential buyers and sellers in the process.

  • Do an online search for car rental swap companies that have positive reviews as well as good customer testimonials.
  • Compare the costs of the fees with the value of the service provided. If you need to find a buyer quickly, it might be worth it.
  • Some websites that specialize in lease swaps will allow you to search by make, model, and year.
Get Someone to Take Over Your Car Payments Step 9
Get Someone to Take Over Your Car Payments Step 9

Step 2. Post your rental agreement online

Instead of using the services of a specialized rental exchange company, you can advertise your rental agreement online and deal with any interest you receive from the advertisement. If you choose this method, you will have to work harder to find a buyer and strike a deal, but you will avoid the costs of hiring someone else to do it. You will have to pay ad and registration fees, so be sure to shop around until you find the best deal with a reputable company.

  • The fees you will have to pay will vary, but generally the registration on the ad serving site will be around $ 200 to advertise your contract.
  • If you want to increase the visibility and presence of your ad, you will have to pay additional costs.
Get Someone to Take Over Your Car Payments Step 10
Get Someone to Take Over Your Car Payments Step 10

Step 3. Advertise the contract locally

The sorter section in your local newspaper is a good place to advertise your search for potential drivers who will take on the rent or take on the loan. Complement the ad with a photograph of the vehicle, the mileage, the general conditions, the monthly payment you make and the remaining term of the rental.

  • You can also use social networks. If you have an account on Twitter, Facebook, Pinterest, LinkedIn or any other social network, post your ad on it.
  • Do not forget to include a photograph and the amount of the monthly payment, as well as the remaining term of the contract.
  • Talk to friends, family, and co-workers and let them know that you are looking for someone to take over your loan or rental.

Method 4 of 5: Transfer the Rent-to-Own and Vehicle

Get Someone to Take Over Your Car Payments Step 11
Get Someone to Take Over Your Car Payments Step 11

Step 1. Contact the rental company

Once you have found someone to take over the rental agreement, you will need to coordinate with the rental company to make sure everything is in order and the paperwork is complete. All financial institutions have their own procedure for assuming the rent, but the procedure usually includes the following points:

  • The presentation of a credit application by the new owner. At the time of assuming a rental, the potential owner or tenant must submit a credit application and be approved for the payment of the remaining amount in the contract.
  • The payment or transfer of the current rental agreement. Once the new owner or lessee is approved for the purchase or rental of the vehicle, said rental or title of ownership will be transferred to him.
  • The creation of a new rental agreement in the name of the new tenant. Once the vehicle rental is enabled or transferred, the new tenant will be responsible for paying the remaining fees.
  • If you are going to use the services of a company specialized in the exchange of rental contracts, they will guide you through this entire process.
Get Someone to Take Over Your Car Payments Step 12
Get Someone to Take Over Your Car Payments Step 12

Step 2. Have the buyer test drive the car

The buyer will no doubt want to test drive the car before closing the deal. You'll also want to inspect it to verify that the condition stated in the ad is correct. This is important to both the buyer and the seller, as both will need to inspect the car together and verify its condition. With a clear and recorded understanding, potential problems will be avoided later.

  • The seller should always accompany the buyer when testing the car.
  • Make sure you are present at any independent inspections that may be made of the car. Taking photos can be very helpful to ensure you have proof of any blemishes or damage on the vehicle.
Get Someone to Take Over Your Car Payments Step 13
Get Someone to Take Over Your Car Payments Step 13

Step 3. Prepare the car for its new owner

When giving the car to its new owner, be sure to remove all your personal items, that is, your iPod, gloves, charger, and any other that belongs to you and is not part of the vehicle. Next, clean the interior (the dash, the doors, the steering wheel, as well as the interior and exterior of the windows). Take the car to a car wash or wash it yourself. Make sure to apply wax after washing it.

Get Someone to Take Over Your Car Payments Step 14
Get Someone to Take Over Your Car Payments Step 14

Step 4. Deliver the vehicle

Depending on the agreement you have reached, you will have to deliver the car to the rental company, the loan company or directly to the person who will assume the rental. Follow the instructions provided by the rental company regarding the delivery of the vehicle. Most of them will collect the car and deliver it to the buyer.

  • If you have title to the vehicle, you will need to transfer it to the new owner or the financial institution. Check with the rental company for instructions regarding the transfer of title to the property.
  • Contact the Department of Motor Vehicles or similar institution in your country to make the transfer of ownership. This will rule out the possibility of you taking responsibility for any damage to the vehicle after the transfer.
  • After completing all the paperwork and handing in the keys, the process will be concluded.

Method 5 of 5: Rent-to-own the car to a known person

Get Someone to Take Over Your Car Payments Step 15
Get Someone to Take Over Your Car Payments Step 15

Step 1. Ask your friends and family

You can also let someone you know and trust take care of the car and make the rental payments to you so that you can later pay the respective fees. If you are considering this alternative, consult with trusted friends and family who may be interested in assuming the rent.

Get Someone to Take Over Your Car Payments Step 16
Get Someone to Take Over Your Car Payments Step 16

Step 2. Contact the rental company

Before considering this option, review your rental agreement to see if this agreement is expressly prohibited. Just allowing someone else to take over the rental agreement without the involvement and approval of the respective company will likely violate the agreement. If a trusted family member is prepared to take care of paying the rent, the company may accept the proposal.

  • By talking to the rental company, you can decide if you should fully transfer ownership of the vehicle by putting the rental agreement in someone else's name.
  • If you do, the new tenant will have to go through a verification and approval process by the company.
  • An alternative method is to keep the contract in your name and ask the other person to pay you directly. However, this could mean a breach of contract, so first make sure you have everything in order.
Get Someone to Take Over Your Car Payments Step 17
Get Someone to Take Over Your Car Payments Step 17

Step 3. Consider the risks

This more informal arrangement has its own inherent risks that you should be aware of. If someone uses your car and makes the respective payments, you basically become a creditor, so if that person stops paying you, you will have to take the vehicle from them. This process can be very complicated and in any case you will have to comply with the payments stipulated in the contract, so you would be exposing yourself to risks.

  • Any damage to the vehicle will depreciate its value and you will end up having a negative equity.
  • If you own the car, you will need to add the new owner to your insurance, which will likely increase the premium. If you don't, the driver will not be insured, which is generally illegal.
  • Because of these risks, you will need to think carefully about the risks before engaging in this type of deal.
  • Consider the trustworthiness of the person, as well as their ability to make the respective payments.

Warnings

  • If the car is still in your name, you will be responsible for any parking fines or other charges that the person driving may be subject to.
  • Make sure to make legally binding written agreements with the person who is going to take on the car rental.

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