Legal Question in Credit and Debt Law in California
Automobile Loan
I'am thinking about selling my vehicle to a friend because he is in need of a vehicle and wants to make me payments. My question is, should I keep the vehicle in my name until he pays it all off or should I have it immediately taken out of my name so that I am not liable for any tickets, etc.? Also, if I have the vehile taken out of my name, if he stops paying am I legally able to take the car back?
1 Answer from Attorneys
Re: Automobile Loan
If your friend is such a great credit risk, why doesn't he get a bank loan or cash advance and pay for the car in full? Has he screwed up his credit already? If he's already burned all the banks and credit card companies, guess who's next? If you insist on pursuing this course of action, get the loan agreement in writing, and get yourself put on the title as the lienholder. And keep a copy of the key for when (not if) you have to repo it.
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