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  Home >> Lending >> Vehicle Loans  
Vehicle Loan Agreement Taken Back: What Now?

My friend has a loan on a car and she couldnt pay it. I am making the payments, with the agreement that after it's paid off, we will own the car. Now she is trying to take the car back after I have made eight payments. What are my rights?



You essentially have none. Where is your agreement to take over payments? Without that, you have little leverage and need to take your friend to court. Depending on state laws, your friend may be guilty of selling mortgaged property if such an agreement exists.

What should have happened was that you either obtained your own loan and purchased the car so that the title was in your name, or you would have been added to the loan and the title with the agreement of the lender. That didn't happen. At least in court you may be able to show that you made the payments and it was a loan and maybe you will get your money back.

Published on BankingQuestions.com 12/17/09