Selling on contract

[devilleather]

What is the name of your state? Indiana

I purchased a brand new 2018 vehicle 2 months ago from a dealership using financing through my credit union at 2.99% for 72 months. Now I want to upgrade already but the amount of negative equity just from driving off the lot is to much to trade in at a dealer. I have a friend that would like to pay me my regular payments for the vehicle allowing me to get another vehicle. He is young and has good income but no credit to get his own loan. My questions are
#1 Is this legal to do?
#2 Do I need a contract?
#3 Will it stay registered in my name?
#4 Can he insure the car himself or do I have to add him to my policy?
Thank you

 

[LdiJ]

What is the name of your state? Indiana

I purchased a brand new 2018 vehicle 2 months ago from a dealership using financing through my credit union at 2.99% for 72 months. Now I want to upgrade already but the amount of negative equity just from driving off the lot is to much to trade in at a dealer. I have a friend that would like to pay me my regular payments for the vehicle allowing me to get another vehicle. He is young and has good income but no credit to get his own loan. My questions are
#1 Is this legal to do?
#2 Do I need a contract?
#3 Will it stay registered in my name?
#4 Can he insure the car himself or do I have to add him to my policy?
Thank you

I have never seen anything so something like this that didn't go horribly wrong. What's more, it won't end up releasing space in your credit to allow room for another loan, unless your credit already has the room. You won't be able to transfer the title to him so you will remain liable for everything that he does. Therefore you will HAVE to include him on your policy, which raises your costs.

I understand the desire to upgrade but be smart and drive the car still its paid off, and then upgrade.

 

[FlyingRon]

I can almost bet that your financing contract bans "leasing" or similar activity such as you are envisioning without permission from them, as wel.