My friend is selling his car to me but still has a loan on the car. He is going to buy one with the cash I've given him and the title will be signed afterwards. Does this mean I have to pay the rest of the car loan off?

wtf...why would you pay your friend to take over the payments?

If there is a loan on the car itself, then most likely the bank has the title for it and wont release it untill its been paid off. If he isn't paying it off with the cash you're giving him with you @ the bank itself i would wait till has has the title in hand.

Never buy a car that doesn't have a title in hand. There was a guy where i live who bought a car being told the "title will be mailed when i find it" 2 weeks later the guy showed up with the local police to pick his "stolen" car up because he still had the title for it.

This post was edited by Logitech~ on Mar 15 2013 09:03pm

sounds like ur friends gonna fuck you over

when it comes to money friends don't exist.

Even if you take over payments for the car, the bank has to APPROVE it. You basically will sign a binding contract with the bank the car is loaned through (if you want to be smart about it to where your friend cannot fuck you over). This, however, will require you to meet the banks criteria for auto-loans, which might be a little ridiculous in most circumstances.

If you think you'll do it without the bank, all the luck to you. For one, it can be reported stolen, by your friend. You'll be out your money, be charged with various felonies and will face some hefty jail time.
--OR--
Your friend says he's paying on the car, takes the money to pay for his new car and the bank comes and repossesses the car, and you'll be out the money you gave him, plus the payments made.

The risks are not worth it. If you plan to do it, do it smart and enter a legal contract with the bank, to which point you might as well go and get your OWN brand new car.

He can't sign the title off to you. If he still owes on the car, he doesn't own the title.

So , your friend owes on the car still but is selling it to you. And the cash you give him for the car, instead of paying the car off, hes buying another car.

Makes sense.

So your buying a car that will still be owed on. Its the banks car. Who is going to make the payments? Your buying the car, what is owed on the car the guy should pay off THAN what money he has left he uses towards something else.

Better be careful. He has the pay the car off, you dont make payments on it, you already bought the car.

the bank he has the loan through on the car you are buying will have their name listed on the title as having a lien against it. that means the vehicle has to be paid off OR the bank can release the title and transfer what he still owes onto his new car. that way they can clear their name off the title. either way you have to wait until the bank has released their lien before a dmv will ever even give you the time of day if you expect to transfer it to you.

idk it sounds fishy as hell to me. like others have said he should pay off the car you are buying because thats what you are giving him money for. it makes no sense to do it the way you are saying.