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I see people on Craig's list who are financing cars offer to switch names to another person?

I've seen on Craig's list people selling cars that are financed that is under their name but can't afford to pay for the car anymore so they offer to switch with another person. No downpayment necessary, just as long as you have good credit. Is this legal?

Public Comments

1. If you mean going to the finance company and taking over the payments, than it's fine, as long the finance company agrees to this and does it officially. If you mean just doing it somehow between you and the seller, you'll get into a huge mess. Don't do it.
2. If you are taking over the loan, and having the car and the loan put in your name, with bank approval, it is legal. This is not what they are offering you, in most cases. What they will want you to do is make the payments to them, and drive on their tags, until the car is paid off. The problem is that they will take the payment you send them, and not pay the bank. You will come out one day to find a big empty space where the car was parked. The bank will repo the the car, and you will not even have the right to your personal belongings in the vehicle, because it is not your car. If you have good credit, you can most likely get a car loan from your bank or credit union, and buy a car without this hassle.
3. To legally assume a vehicle loan, you must deal directly with the lender that holds the note on the vehicle. They would need to approve you for financing and then you would take possession of the vehicle. Any other way is illegal and unwise.
4. What they are doing is giving you their equity (if any) in the car to get out from under the debt. So you have to re finance the car to put it in your name. A common practice. Not a bad deal if they do not owe more on the car than its worth. check nadaguides. com for the values of the car.
5. You have to be careful like the others mentioned. I saw a 2006 Ranger on CL that seemed decent enough. The seller wanted $1500 down AND to keep the loan in his name! It's not my responsibility to bail him out of his mess. How bad to you have to be to get in trouble over a Reg cab/long bed 3.0L v6 Ranger??? Not exactly an expensive vehicle on the grand scale here...I passed on it.