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ITstudent2006 · Apr 5, 2009, 04:32 PM

I am a member of Members First Credit Union, I have a loan for a 2004 Pontiac Sunfire. My sister wants to buy it but she has bad credit, she cannot get a loan for the amount to buy it out right. Here is my question.

Can I keep the loan at my bank in my name and cancel the insurance under my name, my sister would get insurance in her name for the car that's loaned out to me? If that makes any sense.

She would just pay me the monthly payment and then I would pay the bank!
Let me know!

Rick

ScottGem · Apr 5, 2009, 05:00 PM

First, you can check if the CU will assign the loan to your sister. If not, you need to see if the CU has a lien on the title. That might prevent it from being transferred.

ITstudent2006 · Apr 5, 2009, 05:06 PM

Yes, the bank is the lienholder of the title. Also, do you think they would transfer if she's got bad credit. She's been good for about 1.5 years but when she first graduated she ran herslef in the ground as far as credit goes.

I know when people get car loans they need to have collateral in case of something. Since I am so young I didn't have financial collateral or income, property etc... so they created a lien on the title. I heard the owner of a car with a lien cannot sell it while it's under the lien?

DO you know!

Rick

ScottGem · Apr 5, 2009, 05:19 PM

Yes, if the CU has a lien you can't transfer the car without their approval. You can ask whether they will transfer the loan. All they can do is say no.

Fr_Chuck · Apr 5, 2009, 06:39 PM

Or you can co-sign on the loan, ( you have to pay if she will not)

The issue is, with the insurance, if she was in a seroius wreck, and the car is still titled to you, guess who also can get sued, So if there is 300,000 max insurance, ( very common) but the wreck has a law suit for 500,000, HUMM

ITstudent2006 · Apr 6, 2009, 01:29 AM

OK I see thanks. I'm calling the CU in the morning and going to scheedule a meeting to tal about it!