How to transfer a car into another's name?
My father is currently paying my car note, starting the 1st of the year I will be making the rest of the payments until it is paid off to take a load off his shoulders, and he will continue to make the insurance payments (I'm a daddy's girl, so what!). Since I'm the one making payments I want it to be in my name to help my credit score. I desperately want this but my father is saying there is much more to it than I think. Can someone please give me some advice on the steps I need to do to get the car in my name?
Comments
Your Dad is right, but he should give you a little more explanation if he hasn't already.
In order to get the car in your name, the loan has to be in your name. In order to qualify for a loan, you have to have good, established credit, a job with verififiable income and a reasonable debt/income ratio.
You sound young and obviously don't have a clue how credit works, but getting this loan in your name would literally be financially retarted because your interest rate would be way higher than your Dad's.
There are hundreds of ways to build a credit score and, believe it or not, getting a car loan is one of the worst ways. The reason is because of the debt. You are piling a large about of it on your record right from the start, and from a credit reporting and score perspective, it's a huge negative.
I suggest you go out and get a couple of store credit cards or secured credit cards, buy about $60-$80 a month on it (could be gas, clothes, everyday stuff) and then pay it off, in full, every month.
Then slowly increase your spending on it as your income increases. If you pay off the full amount each month, it builds your credit and you don't have to add a crap-load of debt (like a car loan) on your record.
Trust your Dad on this one - he is doing you a favor! When you pay it off he will reward you with the title and the freedom to do whatever you wish with your property.
Your dad is right, trust him.
If you are still making payments to the lender on the car loan there is NO WAY you can change the name on the contract. The contract cannot be altered.
The ONLY way to do that is to actually sell you the car, pay off the current loan and get a new loan in your name to pay off the balance due on the loan.
You may be daddy's girl but your name isn't going to be on that loan unless you go get your own loan and buy the car from your father.
If you are doing this just to increase your credit score it isn't worth it. Find another way to increase your credit rating. A small credit card in your name, a cell phone account in your name only. These are both excellent ways to establish credit.
If the loan is in his name, then the car's title bears his name. The loan institution holds the title so that no one can sell the car. He doesn't "own" the car yet. If you want to own it, you either have to pay off the loan, or possibly if you are able, you can "assume" the loan by renegotiating it with the loan institution.
Car loans are generally not assumable/transferrable. Read your loan agreement or call the lender to find out if this is possible, but I doubt it.
you will have to get the loan in your name