Lienholders/Credit/Etc
Joined: Jul 2006
Posts: 439
Likes: 0
From: Harrisburg, PA
Lienholders/Credit/Etc
I want to buy a vehicle and have it under my name.
I will put money down, and make payments.
My credit is bad, so I will ask a family member (not co-sign) but take a loan out. Can that family member become a lienholder, and the car will be under my name?
Is this possible? If so, what would I need to do?
I will put money down, and make payments.
My credit is bad, so I will ask a family member (not co-sign) but take a loan out. Can that family member become a lienholder, and the car will be under my name?
Is this possible? If so, what would I need to do?
The question becomes how is it possible that you already have a fairly new G w/ thousands in upgrades and your credit is so terrible? I'm sure if some family member bought the car cash and then provided you financing, you could find a way to place them as the lienholder and have the car in your name but it is overly complicated and unnecessary if you can actually afford the car.
There's really no way to have them buy the car w/ a loan and turn it over to you and have them as a lienholder since the loan's terms are for them and the car is the collateral. Selling the car to you effectively voids their contract(requiring immediate payoff of the loan) b/c if the family member doesn't pay and no longer has the car...the bank's in for a big loss. That's why they have co-signers...to allow people w/ sketchy credit get cars by sharing liability w/ someone w/ better credit.
If your credit blows but you have solid income and can really afford the car you shouldn't have any problems getting a loan. Put 30% down, get a 9-10% loan for 60 months and make double payments. Doing so will cut the interest down to a reasonable amount and still leave you a bit of flexibility should your income vary slightly.
If your credit sucks so bad you can't accomplish that, you need to examine if a new car is a good idea at all much less trying to put your family on the hook for the car as well. If the reason you want your family to help is to build your credit, have them cosign. If it's b/c you blew up your credit so bad that no dealer will talk to you, then you need to stop and re-evaluate why you need a new car if you're already that bad w/ credit.
There's really no way to have them buy the car w/ a loan and turn it over to you and have them as a lienholder since the loan's terms are for them and the car is the collateral. Selling the car to you effectively voids their contract(requiring immediate payoff of the loan) b/c if the family member doesn't pay and no longer has the car...the bank's in for a big loss. That's why they have co-signers...to allow people w/ sketchy credit get cars by sharing liability w/ someone w/ better credit.
If your credit blows but you have solid income and can really afford the car you shouldn't have any problems getting a loan. Put 30% down, get a 9-10% loan for 60 months and make double payments. Doing so will cut the interest down to a reasonable amount and still leave you a bit of flexibility should your income vary slightly.
If your credit sucks so bad you can't accomplish that, you need to examine if a new car is a good idea at all much less trying to put your family on the hook for the car as well. If the reason you want your family to help is to build your credit, have them cosign. If it's b/c you blew up your credit so bad that no dealer will talk to you, then you need to stop and re-evaluate why you need a new car if you're already that bad w/ credit.