Getting car loan out of my name?

Hi all,

About 2 years ago, I signed for a car loan for my then girlfriend who could not get enough credit herself (yes I know it was stupid). It is completely in my name, insurance and all, but she pays the bills and drives the car. Since we broke up a year ago, I have repeately asked her to get a new loan with the car in her name, but she always claims she is unable to do it.

My question is, can I demand that she get the car in her name or threaten to take it back? I have a spare key, and know where she works, lives, etc. Someone said that she has basicaly been leasing it from me, and I can take it back if I want. Is this true?? What can I do?!?! Please help!

Thanks in advance,
-agent_002

Agent_002 said:

Hi all,

About 2 years ago, I signed for a car loan for my then girlfriend who could not get enough credit herself (yes I know it was stupid). It is completely in my name, insurance and all, but she pays the bills and drives the car. Since we broke up a year ago, I have repeately asked her to get a new loan with the car in her name, but she always claims she is unable to do it.

My question is, can I demand that she get the car in her name or threaten to take it back? I have a spare key, and know where she works, lives, etc. Someone said that she has basicaly been leasing it from me, and I can take it back if I want. Is this true?? What can I do?!?! Please help!

Thanks in advance,
-agent_002

Click to expand...

My response:

All because you made a mistake by co-signing a loan, does not give you any rights to take that vehicle from her as long as she's making payments. She has a viable, and protectible, property ownership interest in that vehicle. She could sue you for "conversion", "breach of contract", and other legal theories, if you take that car while her payments are up to date. The damages she could win from you would eventually make this very unappealing for you.

A court will not amend the mistake you made in order to justify your fear of financial protection. You signed, you takes your chances, you suffer with your decision. Until such time as she defaults, you leave the car alone - - and she doesn't have to refinance if she doesn't want to.

IAAL

Thanks IIAL for the quick response.

Are you saying that if she doesn't pay the loan, I can go pick up the car? What if she is late on the payment (this has happened a couple of times)? Do I have to give her something in writing that says if she defaults, I take the car? I'm really afraid that she might get vindictive and stop maintaining the car up to warranty specs, or wreck it, leaving me with a POS car in my name that I am responsible for. Can you give me any more advice for my situation? I'm in CA if that makes any difference.

Thanks again,
-agent_002

Agent_002 said:

Thanks IIAL for the quick response.

Are you saying that if she doesn't pay the loan, I can go pick up the car? What if she is late on the payment (this has happened a couple of times)? Do I have to give her something in writing that says if she defaults, I take the car? I'm really afraid that she might get vindictive and stop maintaining the car up to warranty specs, or wreck it, leaving me with a POS car in my name that I am responsible for. Can you give me any more advice for my situation? I'm in CA if that makes any difference.

Thanks again,
-agent_002

Click to expand...

My response:

First of all, it's IAAL.

Unfortunately, you are at her beck and call. You see, with all of these questions you have, it's like hindsight has 20/20 vision. These are matters, and more, that should have been addressed, and placed into writing, prior to you signing. Even though she was your girlfriend, she wasn't your wife, and the relationship could go "south" during the life of the loan - - as it sadly did.

Now, you are laid bare in this matter, and can only hope that she follows through on her end of the bargain. Since the car is in your name, I am sure you realize that if she misses payments, it's your credit that will suffer - - if it hasn't already. All you can do is sit back, and hope; and, if she does miss payments, or fails to pay for insurance, your duty is to pay when she doesn't.

If she fails to pay, you have a right to sue her for "Partition"; i.e., although her name is not on the registration or title, like I said she still has a contractual ownership interest by virtue of her agreement with you and her payments she has made thus far. I didn't mention that earlier only because, as you might have guessed, such a procedure in litigation can be very expensive, costing as much to pursue as probably what is left owing on the car.

At this point also, the absolute most important thing to do, and the lesser of the two evils, is make damn sure that the insurance policy stays in force, and to increase the limits of liability - - not for her sake, but for yours, during the life of the loan. If she kills someone in a crosswalk, guess who they're also going to go after ?

I guess it goes without saying but, for the benefit of our other readers, when compared to both the financial and legal dangers involved, NEVER, NEVER co-sign a loan for friends, family, or otherwise - - because if you do, you're in for the time of your life.

IAAL