Auto Loans to Relatives

[Vike]

What is the name of your state? Arizona.
My son will be 18 in a month and wants to move out of our home. He currently has a loan with me for his car. The car is in his and my names.
If he moves out, and I continue the loan for him, should I get the car out of my name completely?
If I do so, can I legally sieze the car if he fails to make payments to the satisfaction of the agreement I would make him sign?
If I do get the car back, can I sell it if it is in only his name?
If I leave it in with my name on the title, could I be held responsible if he has an accident?

 

[mwj]

If the car is owned "outright" no finance company involved, I think the best thing for you to do is either give the car to your son or sell it and offer your son a down payment loan. This way he builds his own credit history and you avoid any possible future problems if he decides to buy a stero in lieu of making his monthly payment to you.

If the car is financed, my best advice would be to get out of the situation all together. Odds are he will miss some payments and you will need to cover them, including insurance. After all, if you are listed on the title you are responsible for both the monthly payment on the vehicle and the insurance.

I've been through it three times already and beleive me, my relationship with my children has changed. You'll not find the monthly payment to dad at the top of their monthly bills, I always end up behind the stero.

Good luck