November 17, 2009
How do I Sell My Car while still holding my HSBC lien on it?
Ryan H asked:
Hi, I have a 06 Tiburon which i still owe about 10k on with HSBC Auto Finance. The loan and car is in both me and my dads name. I have a VERY close friend that me and my dad both trust fully that wants the car. Ive seen people on craigslist have ads on there where they want you to take over there payments. How can I do this on my car while still holding my HSBC lien on there and he just pays me the payment? He will have full coverage insurance ofcourse on it but will I just sign the title over to him and the lien stay on there or what? He cant approve for a loan to buy it so it has to be this way PLUS I owe more on the car then what its worth. What do i do to make this legal so if he wrecks it then everything will be ok on the insurance part.
Atlanta Wrecked Car Selling
Hi, I have a 06 Tiburon which i still owe about 10k on with HSBC Auto Finance. The loan and car is in both me and my dads name. I have a VERY close friend that me and my dad both trust fully that wants the car. Ive seen people on craigslist have ads on there where they want you to take over there payments. How can I do this on my car while still holding my HSBC lien on there and he just pays me the payment? He will have full coverage insurance ofcourse on it but will I just sign the title over to him and the lien stay on there or what? He cant approve for a loan to buy it so it has to be this way PLUS I owe more on the car then what its worth. What do i do to make this legal so if he wrecks it then everything will be ok on the insurance part.
Atlanta Wrecked Car Selling
Filed under atlanta wrecked car selling by .
Leave a Comment
Comments on How do I Sell My Car while still holding my HSBC lien on it?
1:51 am
Atlanta Wrecked Car Selling
You won't be able to sign the title over to him as that is what HSBC has as collateral incase you don't pay. He would have to apply for his own loan or you would have to supply new collateral to HSBC to guarantee the loan.
6:45 am
Atlanta Wrecked Car Selling
I think you just have him apply to HSBC to take over the payments. They will want a co-signer, and if your dad is willing, he just stays in that role. HSBC will tell you how to handle the paperwork
5:50 am
Atlanta Wrecked Car Selling
You can't sign off your interest to the vehicle without the lien holders permission, who generally don't give permission. This means your close friend will have to borrow enough to pay off the car so you can get clear title. Since you're upside down on the loan, and owe more than the worth of the car, it's unlikely this can happen.
There is no way to make it legal, he can't insure a car you, and your dad are registered owners on that actually belongs to a lien holder. In the contract you signed YOU agreed to keep the car and keep full coverage insurance on it. Sorry.
3:59 pm
Atlanta Wrecked Car Selling
First of all, why do you think he has bad credit? Could it be because he's untrustworthy and unreliable when it comes to paying back a loan????
Secondly, this is very risky. What if he stops paying? Then you and your dad's credit will be ruined. What if he misses an insurance payment and totals the car? Then you and your dad will be on the hook for the loan, without a car to drive. What if he runs over a group of school children and flees? Then the cops will come after you and your dad. What if he gets a bunch of parking tickets/toll violations? All the tickets will come to you and your dad as the registered owners of the car.
If you really trust him, then go ahead… but it's a risk I would not take at any price.