Trading in a car not in my name

[valley_man0505]

The vehicle I currently "own" is actually in my dad's name.  I needed a new car shortly before my divorce since my other one died.  My dad came looking with me and bought a truck in his name--both because my credit was bad and because I didn't want to leave the opportunity for my ex-wife to get it in the divorce.  I make all the payments and it is always in my possession (I don't even live in the same part of the state as my dad), so I consider it "mine".  I have been sticking more and more money into mechanical issues lately and I would like to get a different vehicle--especially with some of the good deals out there right now.  However, there is still almost $4,000 left to pay on this one.  Is there any way to trade this vehicle in and have the old loan balance (in my dad's name) rolled into a new loan in my name?  Keep in my mind, my credit is still pretty bad, so getting a loan in my name at all could be tricky.  I have about 10 medical collections that should be deleted within the next month though and I just had my only PR dismissed, so that should be removed in the next 1-2 months as well, so I am hoping my credit will be good enough for an auto loan soon.

[203bravo]

It's going to be difficult to find a lender that is going to be willing to roll a lot of negative equity into a new loan.  Given the fact that you claim not to have high scores you are probably looking at an extreme interest rate anyway.

As far as "your" car in your dad's name, you can use it as a trade in if he signs the title to the dealership or to you.  He is the only one who can transfer ownership at this time.

[valley_man0505]

I am not real worried about the "negative equity".  The trade in value would be pretty close to what is left on the loan, so I shouldn't be too bad off there.  I just have one of those bad "gut feelings" about it that makes me want to get rid of it.  I have had a couple things fixed on it lately and I just have this feeling that there is going to be more to come--nothing really that is going to negatively affect its value now, though.

My main issue is that I didn't know how it would work signing the title over to the dealer with the bank lien on it.  Can what left on "his" loan (minus trade in value), be rolled into my loan.  I actually don't think there would be much left over to pay since, like I said, the trade in value is pretty close what is still owed.

[Anonymous]

Your dad will have to sign the release over to the dealership where you trade it in. I did the same thing years ago with a truck I took over payments on that belonged to my mother. Who ever's name's on the title/registration has to sign the dealerships release forms.

[203bravo]

Sorry, you asked about rolling over the loan from the current car into the new call.  By all definitions that is negative equity.  However, I assume that you are prepared to take care of that in a cash down payment.