Over a year ago, my husband and I bought a car for him to drive. His credit was bad so we bought the car in my name.
Several months later he moved out, leaving the car. I already had a car of my own and didn’t want his car, but kept making payments as it was in my name. Gradually I realized I couldn’t keep making payments, but since I owed more than the car was worth (I was “upside down”) I couldn’t sell. I called the finance company and explained the situation but they wouldn’t offer any way out.
Recently I found someone who wanted the car and didn’t mind making the rest of the payments, so I let her begin making them. She is also paying for the car’s insurance, which I control, as I wanted to make sure it was ALWAYS insured.
What sort of promissory note can I prepare that states she will receive the car title when she pays it off 100%? I realize this isn’t an ideal solution, but my only other choice was to let the finance company repo the car. They would have auctioned it and billed me for the difference.
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When you make a deal like this, this is what you do.. Example if the car was 20 thousand and you paid 10 thousand and you owe 10 thousand you ask for the new buyer to pay you 10 thousand ( that is yours to keep) and then you ask them to take over the remainder of the loan which in this case would be 10 thousand dollars.
You must contact the finance company with this information explaining that you have sold the car and this person is going to take over the loan.. They should then draw up a promissory note in that persons name and release you from all liability.. This MUST be done through the finance company