|
|
| *Loan,banking and credit>>>auto loan |
Is it possible and/or advisable to assume an existing auto loan? |
Our neighbor is going to work out of the country for one year and is trying to sell her car. It is a 2005 hybrid with 48K miles. I'm wondering about options such as (a) buying it outright, (b) paying her for the current equity she has and assuming the loan (c) leasing or renting it from her. Just not sure what would be the most adventageous all around. 1) It is possible to assume an existing car loan. States vary, but in some states you can get the title transferred to you. The lender's lien will still be on the title but that is appropriate if the loan is still being paid. 2) Whether it is advisable essentially comes down to this: can you could get a better loan than your neighbor got? That depends on your individual credit histories, changes in interest rates (which are still low on newer used cars), and whether one of you has better access to lenders. For example, credit unions often have lower rates but they are not accessible to all people. You can check rates at bankrate.com, which is the best interest rate source around. 3) I definitely would not lease the car from your neighbor. Between individuals this becomes a very complicated and potentially messy transaction. For example, you want to own the car free of any catastrophies that might happen in her financial affairs. My recommendation would be to refinance the car unless there is some truly huge financial advantage to taking over her loan on the car. But it would have to be a very big advantage. |
| Tags |
| mortgage loan consolidation loan commercial loan auto loan fha loan payday loan unsecured loan student loan personal loan |
SiteMap--Copyright/IP Policy--Contact Webmaster For personal non-commercial use only. |