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Negative equity not in my name

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Re: Negative equity not in my name

sorry, I should have specified, if your name is on the title and you are on the loan, then you can trade it in even if someone else in on the title with you as long as they sign as seller.


The situation I described only applies to a someone trying to trade a vehicle that they have no ownership and they aren't a borrower on the lien.


If your on the loan/title you can trade the vehicle as long as the other party is willing to consent. If you are not on the title/loan, you can not trade the vehicle in mention that has a lien on it.

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Message 11 of 12
Frequent Contributor

Re: Negative equity not in my name

@adubz331 wrote:

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.

Message 12 of 12
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