taking over dads car payment

[CreditHealthy]

Hello, this is my first time posting in the auto section of the forum. In 2012 my father was going to co sign for a auto loan for me but, at the time my credit was not good. so, the salesman said it would be better if he just put the car totally in his name, and when my credit was strong enough to then take over the payments. This is a tough question to put into words so bare with me...Dad agreed to wait until Jan of 2015 to do the transition, the car was almost 40,000 with a 2.9% rate. there will be three years of payments toward the car. so I guess my question is will the finance company just make me take over the notes at $550 per month? or will it get refinanced/recalculated because the car is now less expensive than what it was in 2012, possibly bringing my car not down significantly lower? Anybody please chime in. Thanks!

[StartingOver10]

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@JUNE2012 wrote:

Hello, this is my first time posting in the auto section of the forum. In 2012 my father was going to co sign for a auto loan for me but, at the time my credit was not good. so, the salesman said it would be better if he just put the car totally in his name, and when my credit was strong enough to then take over the payments. This is a tough question to put into words so bare with me...Dad agreed to wait until Jan of 2015 to do the transition, the car was almost 40,000 with a 2.9% rate. there will be three years of payments toward the car. so I guess my question is will the finance company just make me take over the notes at $550 per month? or will it get refinanced/recalculated because the car is now less expensive than what it was in 2012, possibly bringing my car not down significantly lower? Anybody please chime in. Thanks!

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When you refinance into your name you won't be taking over car payments. The balance remaining will be literally refinanced into your name. Your father can give you the balance of the loan info now so you can calculate what it will be in Jan 2015. The amount the CU will finance will depend on the value of the vehicle and your credit and income. You still have time to work on your scores if you need to do so. Put savings away just in case you are upside down at the time of refinance. It's possible your payment will be less than your current payment if you are able to get a good rate and your balance is low. Go to bankrate.com and run the figures as if you were financing today using used car rates from the CU/lender where you currently make your payments.

[CreditHealthy]

Thanks for the response! I had know idea what to expect.