Buying a Car is a Big Decision
As a car dealer, I realize buying a car is a huge investment and many times I’ve had people walk through my dealership looking to finance cars they can’t afford. I usually tell them they can’t afford a high monthly loan payment based on their cash coming in each month, even if they have good credit and a financing company approves them.
Letting someone take over car payments on an existing loan is not a good idea. You have no avenue or resolution if they decide to stop making the payments. It’s also not a good idea to co-sign for a car loan if you’re not 110% sure the person who is first on the loan will indeed be responsible enough to make the payments each month. If you co-sign and your son’s girlfriend’s sister stops making payments, the financing company will look to you next to make those payments. If you co-sign you are just as responsible for monthly car payments as the first person on the loan contract.
Further, if you do let someone take over car payments on your loan, and they don’t make them, and you’re not aware about the stoppage, a finance company, especially these days, will attempt to repossess the vehicle within 120 days and that will be reported to all three credit bureaus.
My final piece of advice as a person in the car-selling industry is not to let an aggressive salesperson talk you into trading your car in and refinancing a lower priced vehicle. Why you ask? Not only will you be financing the lower priced vehicle, what you owe on your current car will be rolled into your new loan, making your car payment even higher. Fast-talking and pushy salespeople are good at this tactic so avoid it at all costs.
Before you allow someone else to make loan payments on your behalf, try working with the car financing company or one of the other options listed in this article. As an auto dealer myself, I would also suggest visiting the dealership where you purchased the car and see if they can sell it on consignment for you to help you pay off what you owe.