Friend wants to sell me his car, but it's finanaced and he owes money on it, like $16k we wants to sell it to me for like $11 or $12k which is a good deal, it's a 2007 Lincoln MKZ with 15k on the clock, does not drive it just sits in LA at his grandma's, he wants to pay his credit card off so he doesn't have that debt anymore.... is it even possible to buy it since the finance company basically owns it till it's paid off? is there like a way he can take the $ I give him and put it all on the principal and have the finance company sign it over and have him pay the rest off? i'm thinking no but figured I would ask since someone here might know.
Buying a car off someone?
- Thread starter Youthanasia
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there would be no incentive for the finance company to help you and your friend unless he had something else of value to use as collateral such as an cash value life insurance policy or IRA's or a 401k, that they could hold till he paid off the balance owed.
If you have decent credit you could give the money you have to the finance company and assume the remainder of the debt with them. But they wont accept a lower price than the payoff, whatever that may be. That route will obviously cost you more cash, but you'll be protected at least.
Dont give the friend a dime unless and until he pays the secured debt off and can give you a clear title. Side arrangments are often fatal financially for people. You could give him your cash and trust him to pay off the loan, but if he doesn't your investment is gone. You would have no rights at all with the secured lender.
Dont give the friend a dime unless and until he pays the secured debt off and can give you a clear title. Side arrangments are often fatal financially for people. You could give him your cash and trust him to pay off the loan, but if he doesn't your investment is gone. You would have no rights at all with the secured lender.
He must pay off the finance company. If you pay less than he owes, he must immediately pay the difference.
Contact the finance company and find out how to pay them. You would want a direct bank transfer or a cashier's check made out to them, plus a cashier's check from him if he owes more than you're paying.
If he owes less than you're paying (and your first posting is not exactly clear), then you make a cashier's check to the finance company for the amount owed and a check for the balance to the seller. If you need to finance, arrange the financing and let them handle the details.
You must be sure the finance company is paid off and the title is processed to show you as the new owner.
Contact the finance company and find out how to pay them. You would want a direct bank transfer or a cashier's check made out to them, plus a cashier's check from him if he owes more than you're paying.
If he owes less than you're paying (and your first posting is not exactly clear), then you make a cashier's check to the finance company for the amount owed and a check for the balance to the seller. If you need to finance, arrange the financing and let them handle the details.
You must be sure the finance company is paid off and the title is processed to show you as the new owner.
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