Purchasing a car in installments from a friend.

[MissyDi1981]

What is the name of your state (only U.S. law)? Texas

I borrowed some money from my friend to purchase a car. I put 2000 down and have made four of my $525 payments.

Currently, we do not have a contract and my name is not on the title since he did not feel comfortable with doing this and I trust him very much.

Recently I have asked for a contract and to have my name included on the title along with his. It took a while for him to agree to a contract and he is willing to draw one up today to be signed and notarized. However he is not willing to include my name on the title as either a dual owner nor as a owner with him as the lien holder.

I do realize it was not a good decision for either of us to not have a contract prior to purchase and to not have me included on the title. However, I want to be sure that both of our rights are protected in this transaction and need to know what would be the benefits and the threats to either of us if a contract is not created and my name is not on the title.

Also, what type of conditions should we have on the contract to protect us both?

 

[MissyDi1981]

Also

I only have like eight payments left and I do live with him. I am not sure what his reservations with having me a part of the title and with signing a contract; but I think he fears that I will run off with the car without paying him. It has nothing to do with my character, he has had bad experiences with people and probably does not trust me to do the right thing. However, I would think making him co-owner or at least lien holder along with a contract would protect him from that and would give him some recourse if I were to do such a thing.