If your credit contract is approved, you will need to sign many documents. These are, in most cases, the signature forms of the right to pledge and the title of the car. You must also remove the vehicle from your own car insurance. You may need to contact the DMV for assistance with title and registration transfer policies. The new owner of the car must take out car insurance on the basis of his own government requirements. Other dangers with this agreement are an unexpected car accident with your car driving your friend. Now you have insurance to treat that it was faulty, damage and repairs, possible injuries, and you are responsible. Anyway, this would be a difficult situation for you and probably not your friend. You can list them as a driver on your car insurance, which would result in an increase in the monthly payment, and ask them to pay the difference. But if they are not listed as an authorized driver, the fees will be your responsibility. Allowing a friend to take care of your car loan payments is much more than it looks. No financial institution has someone give the title of a car on their behalf and make payments.
The car is partly owned by the lender. If someone wanted to own the vehicle, the title and everything, they would have to apply for their own funding. Essentially, they “buy” your car and get their own financing. This adds additional papers, registration, taxes and VAT according to the Land. It is important to be armed with the facts before you are ever sitting on the table of a great banker or a credit adviser. Read your credit contract. Read it again. You can consult a trusted legal advisor who specializes in contract law. In most cases, it may be easier to sell your car or exchange it for a cheaper vehicle and adjust the credit to a reasonable payment size.
If you are no longer able to make your monthly car payments, contact the means to get out under the vehicle. Many young couples might want to look at a third party to pay for their car. You cannot transfer a car credit contract between people. You can consider a sublease contract in which the owner of the vehicle rents you his rights in exchange for the support of the vehicle and monthly payments. There are many risks associated with this type of informal agreement and it may violate the terms of your initial loan agreement. Circumstances change; Jobs are lost, incomes are falling and life is happening. Bad news is never welcome and is generally not expected. If you find yourself, for whatever reason, not being able to pay your monthly payment, you may feel that you are stuck between a rock and a difficult place. The possibilities of choice are limited. If you continue to decline in monthly payments, your credit score will decrease faster than it has already done and you may regain possession of the car.
There is no way to protect yourself from that. You could put it in the agreement, but it cannot be applicable unless you go to court.