Owner Financing (Auto)?

[mrmattson]

California.

Okay, so I have a Toyota 4Runner, it has 90k Miles. I owe the bank (Toyota Financial) pretty much what it's worth (worth +/- $10k, I owe $11K). Now, I live just north of LA and I have a woman in San Diego intrested in the car if I can finance it for 12 months (or less) with $4000 as a down payment. Now, I don't have the title as there is still a lein on the car. If she gives me the $4000 down and flakes on the rest of the payments, I'm responsible for the remaining $7000 I owe to the bank. The benefit to me is that someone wants to buy my car for what I owe and I don't have to worry about putting any money out of my pocket to pay the remaining balance if I sell it for less than it's worth. She says she had "credit issues" and doesn't want a high intrest rate if she finances through a bank of her own. I assume I will have a copy of her credit report as well as at least 5 references. This $7k is not a hit I can afford to take either, I'm just a 21.

So, my questions are... It this totally stupid? What kind of a contracts do I need and where can I get it? What are my rights if she flakes (ie; can I go and repo it, assuming she doesn't split out of the area, can I report it stolen)? What about insurance?

Smart or stupid, let me know

 

[mrmattson]

wrong section? bump

 

[racer72]

So, my questions are... It this totally stupid?

Yes it is and it is probably a violation of your financing agreement. If you can't afford to eat the loss, don't do it.

 

[genivieve]

California.

Okay, so I have a Toyota 4Runner, it has 90k Miles. I owe the bank (Toyota Financial) pretty much what it's worth (worth +/- $10k, I owe $11K). Now, I live just north of LA and I have a woman in San Diego intrested in the car if I can finance it for 12 months (or less) with $4000 as a down payment. Now, I don't have the title as there is still a lein on the car. If she gives me the $4000 down and flakes on the rest of the payments, I'm responsible for the remaining $7000 I owe to the bank. The benefit to me is that someone wants to buy my car for what I owe and I don't have to worry about putting any money out of my pocket to pay the remaining balance if I sell it for less than it's worth. She says she had "credit issues" and doesn't want a high intrest rate if she finances through a bank of her own. I assume I will have a copy of her credit report as well as at least 5 references. This $7k is not a hit I can afford to take either, I'm just a 21.

So, my questions are... It this totally stupid? What kind of a contracts do I need and where can I get it? What are my rights if she flakes (ie; can I go and repo it, assuming she doesn't split out of the area, can I report it stolen)? What about insurance?

Smart or stupid, let me know

UGH!! please do not do this.
1.The woman is openly admitting she has credit issues. Bad sign she does not pay her bills first off.

2.The loan is with you not her. So they will chase after you for the money, and try to repo the car if payments are not made. And let's say you cannot find the car, you could be arrested for "concealing it" even though you may not have a clue to where Miss. Soso has the car or has moved for the 10th time in the year.

3.Also your credit will be affected if she does indeed not pay or pay late.

4.And of course last but not least, say she defaults in the loan and you do get the car back. No doubt it will be trashed. You can try to sue her in small claims but who is to say she would care about another judgment. She already has poor credit to begin with.

5. Violation of loan agreement.

6. I highly doubt they would allow the insurance to be transferred over to the woman in her name. They only allow this in NY because liens are on the title, the company cannot hold your title unless it is a lease. Thus the insurance bill would be in your name. If she hit someone drunk, it would be on your insurance. Also any parking tickets would come back to the registrant which would be you.

Place the car in the paper for what is owed on the car and sell it. There is an ass for every seat, and if it takes 3 months, 3 months is hop and skip compared to the problems you could have in the future with self financing.
________________

 

[mrmattson]

Thank You.

 

[MissHotness]

From TX... yeee-haaw!

I'm so glad I read this! I am going through the same predicament. I was going to close the deal tomorrow with my SUV feeling secured with the forms for Bill of Sale, Release of Liability, Authorization Form from my Lienholder to bill the Buyer's address, and having it all notarized at a bank. The thing is, I dont know this person. He was only referred to me by a mutual friend that I hardly know as well.

I still owe the bank $18,700 and have 63 months left. I have it worse than you.

I think I'll just file for repo... or if there is anything else I can do.

To make matters worse. I have 2 vehicles.

1) 2003 GMC Envoy - the one i'm desperately trying to get rid of
2) 2005 Honda Accord - just bought recently.. i dont know why.. i know its stupid..