How do you have someone else take over your car payments?

Answer 1

You can have the person pay directly to you and you in turn ensure the payment is made on time. Most byers will not like that idea out of fear you will steal the money by not paying the loan and in turn having the car repossessed. You can call the lending institution holding the current loan and explain to them what you want to do. They will handle the transaction as a new loan to the buyer; and only if the person is credit worthy, otherwise they will deny your request. The "correct" way to do this kind of transaction is to advertise "Take over the payments" but require that the buyer takes out a new loan; By doing so you ensure that your loan is paid off (no chance of damage to your credit), you do not have the "headache" of not knowing if the buyer will be diligent in paying "your loan".

In certain countries (like South Africa), it is illegal to take over car payments, and the bank may institute legal action against the seller. Even though this is the case, there are a lot of fraudsters advertising this service, and claiming to have a "loop-hole" in the National Credit Act, by renting your vehicle to the purchaser, for the amount of the payment, and then selling after final payment, for a small payment. This is still illegal! These fraudsters know the law, and, unfortunately, no-one can do anything against them. They often just pay the first payment, and then do not continue. Upon enquiry, you may find that their address is fake, and their phone numbers are no longer connected. The car is gone, and you end up with the debt. The police can't do anything against them, and a recent enquiry with a Superintendent at the Vereeniging Police Station, assured us that there is no way that these criminals can be caught, as you knowingly "gave" the car over to them. You are the only one in trouble. (Legal action from the bank). The contract signed, is illegal from the start, which makes you unable to institute any action against these so-called "brokers". I am talking out of experience, as I sold 2 vehicles this way, at the same time. Both vehicles are now gone - but I still sit with the debt, and still need to pay the monthly installments on the vehicles. The insurance also won't pay out, as you "knowingly" gave your car up. I would definitely warn anybody deciding to take this step, to rather do your research first.