Jan 2006, I financed a Jaguar in my name for an ex boyfriend because he could not get qualified. 9 months ago I paid off the auto loan with a 0% for 12 months credit card I had. I am eager and anxious to get the car out of my name. My ex boyfriend does not have good credit but he recently got a car through Captial One Finance. I need help. He is making payments on the Jaguar to me which in turn I pay the credit card. The balance on the car is 9200. The car is not worth more than 6000. Do you know where he can apply for a private party auto loan? or do you have other suggestions?
The first question: is the car being held as collateral for the credit card loan? If so It will have to be paid off to change the title, if not you can sign the title over to him at any time. Of course this means the car belongs to him and you will have to be confident he will continue to pay the loan. He can also go to his private bank or credit loan and try for a loan, but with the current state of affairs it will be difficult for him to secure financing with a poor credit rating. Even the sub-prime lenders (ie: Beneficial, Household Financial, etc.) have tightened up on the lending.
Your only option, if the vehicle is being held as collateral, is to let him make the payments and hope he doesn't have any accidents or liability issues with the vehicle until you can move it into his name.
〉 Answered on Sep 22nd, 2008 by Jessie L Thatcher, F&I and Sales Specialist at Reynolds and Reynolds Company (Retired)