So I'm driving a vehicle owned by and making payments to my friend. I'd like to trade it in to get something in my name since my credit has drastically improved. A couple of dealers have turned me away saying I can't carry someone else's negative equity ($3400) into my new loan? A down payment of that much is not possible. I'm not understanding why this isn't possible since I'm basically agreeing to pay the loan and the bank would make interest of it anyway. Someone shed some light on this, please?
Buying a car just because your scores have gone up isn't really a good idea imo. You have a car right now. Even though it's not in your name, you made an agreement with your friend. And you don't have the money for a downpayment, so you should at least save for that. Having your credit improve is exciting. But that doesn't mean you should do something to put yourself in jeopardy.