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a straw buyer is someone who uses someone else's credit to secure a car loan (and car) to drive for themselves, knowing that the person whose credit is being used has no intention of driving the car and ultimately may not be responsible for the payments. It is often illegal for a straw buyer to be the only insured driver of the car.
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∙ 15y ago
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Can the car seller be held responsible for the car loan of the buyer?
ABSOLUTELY NOT
Are straw purchases of a car legal in CA?
No automobile straw purchases are not legal in California. Straw purchases are attempts to intentionally defraud a lender and if found out the car loan could be void.
How can I sell a car that has a lien on it?
If you are selling the car for enough cash to pay off the balance on the loan it is simple. Simply take the buyer with you to the lender and pay off the loan. You will get a lien release that you then take with you and the buyer to your DMV and transfer the car over to the buyer. If you are not getting enough to pay off the loan, then you have 2 choices. Ask the lender to allow the buyer to take over the payments, or pay off the loan with money from another source. You cannot sell the car without a lien release from the lender, so you must talk to the lender.
Do you still have to pay a car loan if the co-buyer filed bankruptcy?
Yes.
If you are the co-buyer on the car is the loan in your name also?
IF your name is on the LOAN papers, you are the co-signor and responsible for paying the loan if the debtor doesnt.
Can you sell a car with a defaulted lien?
Of course you would give notice to the buyer that there is a default of the car loan in effect. To not give notice to the buyer would constitute fraud. You must be able to pass clear title to the buyer. If there is a car loan in effect the lender must have possession of the title. The buyer should contact the lender for a payoff figure and to arrange to have the loan paid off in order to receive CLEAR TITLE on the vehicle. You may not receive any of the proceeds of the sale if you owe the bank as much as the price the buyer is willing to pay.
What is a Straw purchase on a car loan?
A straw purchase is when someone else signs for a car loan but the loan is being paid by someone else. For instance person "a" has bad credit and person "b"does not. Person "a"signs for a loan under the idea the car is for them, but it is actually for person "b." Person "b" then gives the car to person a to drive as their own. Person b is responcable for payments, but hopes person a will make them. This type of loan is not allowed. If a dealer knows this is taking place, they will not sell the car.
You are co buyer on a car loan with your mom you had a fight can she keep you from using the car?
Depends on wheter both your names are on the title or not.
Can someone else take out a loan on a car for you?
This is called a 'straw' purchase. It does happen in the industry, but the banks do not allow it.
If a co-buyer is on the contract and is making the payments does the co-buyer receive the credit points or does the buyer?
Both the co-buyer and the buyer get the credit and the blame if the loan is not paid. Co-signing on the loan is the same as getting the loan.
Can a primary buyer have a co buyer removed from an auto loan if the co buyer was never needed to get the loan?
That will be up to the LENDER.
Can you sign car that has a loan on it to the primary buyer and not be responsible for it if he defaults?
If you are the co signer, then it is automatically your responsibility if he defaults
