Chicago - Buying a Car by Paying the Original Owners Monthly Payments?

[lindaz]

my husband wants to buy an '98 suv from his friends fiance. Because his credit history is relatively new and mine is old and poor, it was suggested that the org. owner keep the loan in her name, he makes the monthly payments until the loan is paid in full at which time we would own the car. Title of the car would be in his name. #1 - is this legal? How would we go about doing this so that he's not cheated out of a car when the payments are done? If the title is signed over in my husband's name, to the State, does he own the car? loan is in the org. owner's name? We pay her and she pays the loan. if she defaults - do they come pick up our car? should there be some type of written contract between the two parties? Thanks for your help.

 

[loku]

Purchase of car

Your husband can enter into a valid contract with the car owner in which your husband agrees to make the payments in exchange for the possession of the car until the loan is paid up and then to have the car transferred into his name. If the original owner or your husband defaults, they can repossess the car. As far as the finance company will be concerned, their arrangement with the owner will not change. The contract should be in writing so that if there is a dispute, the terms can be proved.