How to Take Over Individual Car Payments

If you find yourself in need of a new car, you may know someone who is looking to get rid of a car that he is making payments on. If you are interested in his car, you can take over their individual car payments instead of going through a car dealer. However, taking over someone's individual car payments can be very risky and should be entered into with caution, as the vehicle typically remains titled in the original owner's name.

Things You'll Need

• Contract

Instructions

1. Ask the current owner of the car to contact the lender of the car loan. Have them inquire of the lender if they will rewrite the loan and allow someone else to take over the individual car payments. Some lenders will do this, providing that you can pass a credit check, and some lenders will not.

2. Type up a contract to to take over the car payments if the lender will not do a rewrite. This is the only way that you can protect your interests if you are taking over car payments without the assistance of the lender. The contract should include the seller's name and contact information, your name and contact information, the car information including VIN number, the amount of the monthly payment, how and where it is to be paid, how the title is delivered once the car is paid off, who is responsible for insurance and titling of the car, who is responsible for repairs of the car and what happens if you default on payments.

3. Take the contract to a notary with the person who is selling the car. Each of you should sign the contract in the presence of the notary. The notary will serve as witness that each of you signed the contract and will check your photo ID to make sure you are in fact the person named on the contract. Then the notary will sign and stamp, or put a seal, on the document.

Tips & Warnings

• Insist on sending your payments directly to the lender to avoid the seller pocketing the money and your car getting repossessed.

• Consider getting a loan instead to purchase the car outright for the price left on the original loan.

• Even when using your own contract, there is some risk involved in that the car is still legally in the original owner's name.

• If you are stopped by the police for any reason, the car may be interpreted as stolen if the police find that your name doesn't match the car's registration and/or the VIN.

References

• Stretcher: Taking Over Car Payments

Resources

• Read this Article in Spanish
• I want to take over someones car payments without financing it in my name?