Ok, i had no idea where to post this so I decided here since it will be an xB that will have the payments taken over. Ok well I have decided to part ways with my xB and Im looking into the xB2 or a tC (since I've loved them since they released). Well my brother really wants mine and is willing to take over payments. The thing is he has no credit so it cant be transferred over to him. I DO trust him in that he will give me the monthly payment every month, he just wants some time to save up for it, plus I told him I wanted $1000 for everything ive done to it.

Well my question is, how do i go about doing this? I wont be getting a new Scion for a couple of months so we both have time to decide. But the way I was gonna do it was keep everything in my name (except insurance) and make him sign a contract and like a bill of sale. Would this be the right thing to do? Any advice is great!

 

if you just want to let him drive it and he pay you, then just add him on ur insurance. Or if that's gonna mess up your loan approval like me, they will see your current car and then you want another too? no way is what they will say, so it would be better to get the car in his name. I think you can transfer to him, as a seller. just get the title and fill out all the neccesary lines just as you would if you were selling it. I had to fill out about 8 of these last year for junk cars so i got experience with this crap. If he has no credit then it can be transferred to him, he will just need to make much HIGHER payments than you did. BTW get the xb2 then we can be brothers! i'm getting the blackberry xb2! i'm gonna put down $7000! working like 2 1/2 jobs to save up for it. i am also going to trade in my car with the 7k down, so i want the payments to be equal or less than what i'm paying now (270)month. Also if you transfer titles frequently within a short amount of time you will get CHARGED. like a dealer tax or something...i did. it was about $300. i didn't make any profit selling used cars. but this is my advice.

 

I dont think i will have a problem with a loan approval. Me and my g/f will be co-signing for a new Scion and we should be good. I may put a down payment but the girl i deal with at the dealership told me that I wouldnt have to worry about a down payment (everyone basically knows me there, im there so much! lol).

The other thing it, since its financed through TFS, I couldnt just sell it to him and thats it could I? He said he will get insurance on it on his own. Everything would stay under my name though, since that seems like the only way it will work out without going through all kinds of paperwork and him paying a higher payment...

 

if he's getting his own insurance and going to make the payments at your rate, then don't sell him the car. But if you don't sell it to him what if he gets into a wreck and your name is on the title of the car but he has the insurance???lol. Just sell him the car and let him deal with it. then you can get the xb2 with no past worries. seems like the best way to go.

 

my only concern is what if he cant get financing for it? I also dont own it yet so there is no title in my name yet. Also as long as he is on the insurance with me we should be good right? Maybe i should go to the dealership and see about this...

 

if he's on the insurance with you, the payments in your name, but he's giving you the money then that would work fine.

 

ok good. then i will look into that. i do trust my brother and hes willing to sign a contract and everything to take it off my hands. If I do trade it in I probably will be upside down and id rather not do that...

 

family trust is a good thing.

but take one think into consideration.

what will you do if he doesnt make payments?

it has happened to countless people, and if you cant find a 100% garunteed backup plan to save your credit if it happens, then dont do it.

 

that's always a threat, no matter how trusting you are of someone, don't set yourself up for trouble. You guys could have an argument over the ingredients in water and then boom! brother says: i don't feel like payin for this month! so just to keep that in the back of your head. i've sold some cars to people b/c i thought they would pay me back like they said they would, they were family friends, but he never did pay and he got the title in his name so i was screwed! yeah.

 

Never let someone use your credit especially your own brother! What you need to do is check the "retail payoff information" of your car at www.toyotafinancial.com. Have your brother go to Patelco and apply for a car loan to the sum of the payoff amount. This will save him some money since Patelco offers lower rates than TFS. Then to process the transfer, you need to send a certified check with your account number to:

Toyota Financial Services
P.O. Box 60114
City of Industry, CA
91716-0114

or you can fill out this form if you want Toyota to transfer the title directly to your bro or Patelco:
http://www.toyotafinancial.com/my_tf...orm_toyota.pdf

You're welcome!

 

I agree. Never know what could happen. Not doing someone else any favors letting them use your credit when they could be establishing their own. Better to have him get a loan so everything is in his name. If not and it's not paid off, then don't sell it. And cosigning with your girlfriend? An even worse idea.

 

naw, co-signing my g/f isnt a bad idea, I know it would be bad if we werent together that long but me and her are getting married and have been together for a veerrry long time so we dont have nothing to worry about. We just got a home and plan on getting married in the near future, we're trying to finish school right now...

 

Kudos to you for trying to help your brother out. IMO its a mistake. Heres the deal ...

You own the xB now. If you let your brother take over the payments and they are still in your name, then no matter what happens you are still repsonsible for those payments on that xB. I would be willing to bet that even if you have a seperate contract drawn up you are still the one TFS is going to go after if you miss a couple of payments. Your contract with your brother wont hold up in a court of law becuase you already have the car in your name. I have seen this happen before. As long as you are still the lein holder, its 100% your responsibilty to make those payments. TFS doesnt care where they come from, as long as you see that they are made.

The same holds true for co-signing. If the person who is being co-signed for cant or doesnt make the payments, then the bank is going striaght after the one who had the better credit; the co-signer. The co-signers credit can be wrecked and him/her not even know about it till its too late. Co-signing is another BIG no no in my book.

Your insurance, that is another story. If you have a car title in your name, the insurance company will demand that you are the one who is insuring the car, not your brother. Here again, the cars lein in under your name, not your brothers. Your insurance company is insuring the lein holder, not some one who is taking over payments. TFS would want it that way, as you havent paid for the xB entirely.

I know first hand what money can do to a family. I have been the nice guy and shelled it out to never get it back. It has ruined my family for almost a decade now. Your brother may have the best intentions, but when push comes to shove, hell back out of something is isnt obligated to first over anything else.

 

Bad idea. Very very bad idea indeed.

 

Big mistake! Do not do it! Make him get his own loan!!!!! Your GF (wife to be) is OK with this? If he can't swing a loan, just trade it in and forget it.