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.
ABSOLUTELY NOT
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.
A buyer is the primary person responsible for purchasing a car and is legally obligated to make payments. A co-buyer is someone who shares the responsibility for the car loan and is equally liable for payments if the buyer fails to pay.
To sell a financed car privately, you will need to first determine the payoff amount of the loan. Then, you can find a buyer and negotiate a price. Once you have a buyer, you can arrange for the sale to take place at a location where the buyer can pay off the loan directly to the lender. After the loan is paid off, the lender will release the title to the buyer, completing the sale.
To privately sell a car with an outstanding loan, you can either pay off the loan before selling or work with the buyer to transfer the loan to their name. It's important to communicate with your lender and the buyer to ensure a smooth transaction.
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.
Yes.
IF your name is on the LOAN papers, you are the co-signor and responsible for paying the loan if the debtor doesnt.
A co-buyer on a car purchase is equally responsible for making payments on the loan and ensuring the vehicle is properly maintained. They are legally obligated to fulfill the terms of the loan agreement and may be held liable if the primary buyer fails to make payments.
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.
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.
Depends on wheter both your names are on the title or not.