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Old 03-09-2007, 06:19 AM   #1
Kyoto now
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Default How do I assume another person's auto loan?

My girlfriend is in the market for a newer truck and it just so happens that a friend of ours is wanting to get rid his 03 Tacoma TRD because he can't make the payments anymore (lost his job). the loan still has $9k left. What's the easiest way to assume his loan? What should he get out of the deal?
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Old 03-09-2007, 06:31 AM   #2
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Default Re: How do I assume another person's auto loan? (DA9 Purist)

If it is through Toyota's finance they should be able to work it out. However he still might be on the title so her payment history could affect his credit. I would make an agreement with both parties that she immediately get a loan to pay off the current lein and get the title in her name.

He would get nothing from this because he is not trading it in, just handing over the payments.
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Old 03-09-2007, 06:42 AM   #3
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Default Re: How do I assume another person's auto loan? (Ed 341)

So he gets nothing at all? the vehicle is worth $13k, the loan has $9k left, shouldn't he get something?

PS. If no one buys this it will be repo'd in a month. Click the image to open in full size.
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Old 03-09-2007, 06:47 AM   #4
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Default Re: How do I assume another person's auto loan? (DA9 Purist)

that extra $4k will be handled between your gf and your friend.
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Old 03-09-2007, 06:50 AM   #5
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Default Re: How do I assume another person's auto loan? (DA9 Purist)

When I sold my S2000 I wanted to just transfer the loan to the buyer, but they wouldn't allow me to do that. He had to apply for his own loan.
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Old 03-09-2007, 06:57 AM   #6
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Default Re: How do I assume another person's auto loan? (RyanEJ8)

Have her go to her bank or credit union and apply for a used auto loan. Theyll approve her up to a certain amount. Then she tells them she has a vehicle in mind and she can give them the VIN # and they can tell her what they value the truck at and thats how much of the price of the vehicle they will finance. Does this make sense?

Say she gets approved for $15K. Your friend wants $13K for his Tacoma. They bank says the trucks only worth $12K and thats all they will finance. You come up with the remaining $1K or your friend lowers the price of the truck. The $9k will go to your friend to pay off the loan he has and the remaining balance he pockets. Thats always how its worked for me when ive financed used vehicles through my credit union.
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Old 03-09-2007, 07:26 AM   #7
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Default Re: How do I assume another person's auto loan? (DA9 Purist)

Not all loans are assumable. Have your buddy call Toyota to make sure, but it is likely your girlfriend will just have to secure financing elsewhere. The new financing source will pay off the balance of the old loan. The new loan will be for the current value of the vehicle. The new bank will write a check to your friend and/or Toyota Financial.

Probably easier that way anyway if there is $4000 hanging out there; your buddy would be getting a real shitty deal too.




Modified by BeerMan at 11:37 AM 3/9/2007
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Old 03-09-2007, 07:28 AM   #8
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Default Re: How do I assume another person's auto loan? (Losrocket_)

Wouldn't he only get money if he sells it to her? If she is just taking over the payments why would he get anything?
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Old 03-09-2007, 07:57 AM   #9
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Default Re: How do I assume another person's auto loan? (Ed 341)

Quote:
Originally Posted by Ed 341
Wouldn't he only get money if he sells it to her? If she is just taking over the payments why would he get anything?
because the truck is worth more than he owes. That means he has paid more to the bank than the truck has depreciated since he got it. He may be in a bad spot, but that doesn't mean he should be dicked over.

He sells the truck for 11k or whatever, then his 9k gets paid and then the title can transfer to the bank of the new owner. He gets whatever is remaining from selling price and owed.
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Old 03-09-2007, 08:11 AM   #10
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Default Re: How do I assume another person's auto loan? (ricodemus)

Quote:
Originally Posted by ricodemus

because the truck is worth more than he owes. That means he has paid more to the bank than the truck has depreciated since he got it. He may be in a bad spot, but that doesn't mean he should be dicked over.

He sells the truck for 11k or whatever, then his 9k gets paid and then the title can transfer to the bank of the new owner. He gets whatever is remaining from selling price and owed.
I see...makes sense. Click the image to open in full size.
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