Taking over payments on financing?





Page 1 of 2 1 2 LastLast
Results 1 to 20 of 24
  1. #1
    Join Date
    Apr 2010
    Location
    Pretoria
    Age
    52
    Posts
    404
    Thanked: 104

    Default Taking over payments on financing?

    Not sure about the legality, but I do understand that it's frowned on.

    Friend of mine got a position overseas and is busy packing up everything.
    He has a small car that is financed and he is willing to sell just to cover the outstanding.
    I'm in need of a car for my child and his installment fits my budget.

    Working for commission makes it a hell of a runaround to get my own financing.
    What is the situation if I wanted to take over his payments as is?
    Comprehensive insurance is a must, but not sure what the insurer will say.
    Contract signed between us?
    Is it even legal?
    Change of ownership papers signed in advance?
    If so, what else to look at?

    I'm sure I'll probably get killed in the comments, but it seems to be an option at the moment.

  2. #2
    Join Date
    Mar 2008
    Location
    De Wildt
    Age
    56
    Posts
    33,756
    Thanked: 9054

    Default Re: Taking over payments on financing?

    I lost a friend when I sold him a car with the agreement that he took over payments.............because he didn't. And I opened a case of theft.

    I had to do that because:

    The vehicle is the property of the BANK, your friend may not sell it to you until the loan is settled.

    Also the BANK will only release the original ownership papers to your FRIEND.

    What you are considering is risky for both parties and could be constitute as fraud.
    2012 Jeep Sahara Unlimited 3.6 V6
    Percivamus

  3. The Following 8 Users Say Thank You to jelo For This Useful Post:


  4. #3
    Join Date
    Apr 2018
    Location
    Umhlanga
    Age
    53
    Posts
    165
    Thanked: 303

    Default Re: Taking over payments on financing?

    Quote Originally Posted by Adam Stander View Post
    Not sure about the legality, but I do understand that it's frowned on.

    Friend of mine got a position overseas and is busy packing up everything.
    He has a small car that is financed and he is willing to sell just to cover the outstanding.
    I'm in need of a car for my child and his installment fits my budget.

    Working for commission makes it a hell of a runaround to get my own financing.
    What is the situation if I wanted to take over his payments as is?
    Comprehensive insurance is a must, but not sure what the insurer will say.
    Contract signed between us?
    Is it even legal?
    Change of ownership papers signed in advance?
    If so, what else to look at?

    I'm sure I'll probably get killed in the comments, but it seems to be an option at the moment.
    Taking over payments is nothing new.
    Contact the financing bank (Wesbank, ABSA ect) and transfer the car payments and ownership into your name.
    If a private person sells you a car that is under finance, by law the bank has to be settled first.
    Most importantly, you need to find out from the bank directly how much is still owing on the car. Your buddy might tell you 12 months and everything is up to date....
    But the reality could be that 3 years are still owing, and the account is in arrears for 6 months.

    Anyone can insure and pay for anyone's vehicle, as long as there is only 1 insurance policy on that particular vehicle.
    Should you unfortunately be in an accident or theft, ownership of the vehicle becomes an issue for the insurance payout, if the car is not in your name.
    And the bank always gets first preference.
    I met some crazy people.... They made me their leader.

    2014 Mazda BT-50 - Recently bought. March 2018
    2013 Nissan NP300 - Daily workhorse
    1993 Ford Courier 2.2... Odometer stopped working just over 530'000 km's. Sold 2013
    69' Series 2 Landi - Old, slow, thirsty. Go anywhere. Stolen in 2010

  5. The Following User Says Thank You to AlexP For This Useful Post:


  6. #4
    Join Date
    Nov 2013
    Location
    Alberton
    Age
    58
    Posts
    429
    Thanked: 413

    Default Re: Taking over payments on financing?

    When approaching the bank to legally take over the installment check if there is a "balloon" payment at the end of term.

  7. #5
    Join Date
    Jun 2014
    Location
    Sinoville Pretoria
    Age
    62
    Posts
    741
    Thanked: 468

    Default Re: Taking over payments on financing?

    Anyone can insure and pay for anyone's vehicle, as long as there is only 1 insurance policy on that particular vehicle.

    Bit of wild statement, not true, unless you can prove a financial interest in the vehicle and will be best to declare same to insurers before/when applying for cover
    Last edited by julius caesar; 2019/06/17 at 12:03 PM.
    Henk Pretorius D4 3,0 SDV6 HSE
    EX AFRICII SEMPER NOVUS

  8. The Following User Says Thank You to julius caesar For This Useful Post:


  9. #6
    Join Date
    Apr 2010
    Location
    Pretoria
    Age
    52
    Posts
    404
    Thanked: 104

    Default Re: Taking over payments on financing?

    Quote Originally Posted by AlexP View Post
    Taking over payments is nothing new.
    Contact the financing bank (Wesbank, ABSA ect) and transfer the car payments and ownership into your name.
    ....
    I think this is what I'll try to do.
    Thanks for advise

  10. #7
    Join Date
    Jan 2013
    Location
    Krugersdorp
    Age
    64
    Posts
    204
    Thanked: 50

    Default Re: Taking over payments on financing?

    If I may add my 2 cents, both you and your friend need to approach the BANK, YOU WILL NEED TO APPLY A LOAN, if you are credit worthy and the loan approved. It is a new loan and you will be liable for the VAT, you need to have insurance in place. Depending on the BANK, your friend may be requested to sign as co-debtor/ guarantor. You may be required to pay a deposit as required by law. This way nobody loses and it is legal. The BANK will advise what is required from both parties.

  11. #8
    Join Date
    Sep 2006
    Location
    The Windy City
    Age
    48
    Posts
    15,489
    Thanked: 2836

    Default Re: Taking over payments on financing?

    Why take over payments? Surely it will be much better to buy it at settlement value from him and finance?

  12. The Following 2 Users Say Thank You to Dirk For This Useful Post:


  13. #9
    Join Date
    Sep 2006
    Location
    Cape Town, Plumstead/The Sea/Franskraal
    Age
    52
    Posts
    2,307
    Thanked: 416

    Default Re: Taking over payments on financing?

    Just do not do it.

    I actually can't believe that people still ask questions like this, it will end in some kind of tears.
    Last edited by ZuluCowboy; 2019/06/17 at 10:40 PM.
    Mercedes W123 300D, runs on Mother Natures Goodness.
    Powered by the Sun, the Rain and the Earth.
    Have now covered 220 000Km on veg oil.
    Oh, and an Isuzu 280DT.

  14. #10
    Join Date
    Jan 2015
    Location
    Vredenburg
    Age
    41
    Posts
    2,529
    Thanked: 836

    Default Re: Taking over payments on financing?

    Quote Originally Posted by Dirk View Post
    Why take over payments? Surely it will be much better to buy it at settlement value from him and finance?

    Quote Originally Posted by Adam Stander View Post
    Working for commission makes it a hell of a runaround to get my own financing.
    Last edited by Karoo Klong; 2019/06/17 at 11:18 PM.

  15. The Following User Says Thank You to Karoo Klong For This Useful Post:


  16. #11
    Join Date
    Apr 2018
    Location
    Umhlanga
    Age
    53
    Posts
    165
    Thanked: 303

    Default Re: Taking over payments on financing?

    Quote Originally Posted by julius caesar View Post
    Anyone can insure and pay for anyone's vehicle, as long as there is only 1 insurance policy on that particular vehicle.

    Bit of wild statement, not true, unless you can prove a financial interest in the vehicle and will be best to declare same to insurers before/when applying for cover
    I pay the insurance for 2 different vehicles that do not belong to me.
    My name. My policy.
    Last year a taxi jumped a red robot and t boned the Chevy Spark. Insurance paid out. Not to me, but directly to the owner.
    I met some crazy people.... They made me their leader.

    2014 Mazda BT-50 - Recently bought. March 2018
    2013 Nissan NP300 - Daily workhorse
    1993 Ford Courier 2.2... Odometer stopped working just over 530'000 km's. Sold 2013
    69' Series 2 Landi - Old, slow, thirsty. Go anywhere. Stolen in 2010

  17. The Following User Says Thank You to AlexP For This Useful Post:


  18. #12
    Join Date
    Jun 2014
    Location
    Sinoville Pretoria
    Age
    62
    Posts
    741
    Thanked: 468

    Default Re: Taking over payments on financing?

    Quote Originally Posted by AlexP View Post
    I pay the insurance for 2 different vehicles that do not belong to me.
    My name. My policy.
    Last year a taxi jumped a red robot and t boned the Chevy Spark. Insurance paid out. Not to me, but directly to the owner.
    No ownership, no financial interest in vehicle? I dare you, send an email to your insurers on this claim, declaring the above and see what happens.
    One of the basic pricipal rules on insurance is ownership, be it actual or via financial interest. That is reason why you can insure a vehicle under HP, belonging to a bank. You have financial interest on this vehicle, i.e. you owe money
    Last edited by julius caesar; 2019/06/18 at 08:27 AM.
    Henk Pretorius D4 3,0 SDV6 HSE
    EX AFRICII SEMPER NOVUS

  19. #13
    Join Date
    Nov 2015
    Location
    Edenvale
    Age
    32
    Posts
    424
    Thanked: 374

    Default Re: Taking over payments on financing?

    Quote Originally Posted by julius caesar View Post
    No ownership, no financial interest in vehicle? I dare you, send an email to your insurers on this claim, declaring the above and see what happens.
    One of the basic pricipal rules on insurance is ownership, be it actual or via financial interest. That is reason why you can insure a vehicle under HP, belonging to a bank. You have financial interest on this vehicle, i.e. you owe money
    No dude, you can insure for someone else. I pay insurance for my mom's car, under my policy, she is listed as both owner of vehicle and as regular driver of vehicle. AFAIK, insurance would pay out to her should something happen. In fact, when we did claim, she had to fill in all the paperwork and send it to my broker, and the claim paid no problem.
    2011 Freelander 2 SE
    Swambo : 2012 BMW 530d Msport("the beast")

  20. The Following 2 Users Say Thank You to lizardalpha For This Useful Post:


  21. #14
    Join Date
    Sep 2006
    Location
    Gaborone, Botswana
    Age
    56
    Posts
    4,738
    Thanked: 840

    Default Re: Taking over payments on financing?

    Quote Originally Posted by julius caesar View Post
    No ownership, no financial interest in vehicle? I dare you, send an email to your insurers on this claim, declaring the above and see what happens.
    One of the basic pricipal rules on insurance is ownership, be it actual or via financial interest. That is reason why you can insure a vehicle under HP, belonging to a bank. You have financial interest on this vehicle, i.e. you owe money
    We pay the insurance on my daughter's car. Registered in her name and no financial interest. This was made clear in all documentation at the time of adding the vehicle to the policy. Last month it was written off in an accident. Insurance is paying out - Directly to the registered owner.

    .
    Last edited by KobusDJ; 2019/06/18 at 08:59 AM.
    Kobus

    HDJ81 VX

  22. #15
    Join Date
    Mar 2008
    Location
    De Wildt
    Age
    56
    Posts
    33,756
    Thanked: 9054

    Default Re: Taking over payments on financing?

    I insure two vehicles owned by children, no financial interest. It can be done.
    2012 Jeep Sahara Unlimited 3.6 V6
    Percivamus

  23. #16
    Join Date
    Oct 2011
    Location
    Earth
    Age
    40
    Posts
    2,611
    Thanked: 1725

    Default Re: Taking over payments on financing?

    Getting a loan when you work under commission should not be that big a schlep
    Same rules applies to just about anyone who gets salary with alternating components like standby pay, overtime pay and so forth

    Normal 3 months bank statements submitted with the loan request and the banks normally approve those quickly
    2007 Subaru Forester 2.5XT
    Forester nutter here so watch out

    Please remember that I think I'm funny
    (most people don't agree)
    thus take 90% of what I post with 2 pinches of salt

  24. #17
    Join Date
    Jan 2012
    Location
    Bethlehem
    Age
    52
    Posts
    6,975
    Thanked: 2709

    Default Re: Taking over payments on financing?

    Quote Originally Posted by Adam Stander View Post
    Not sure about the legality, but I do understand that it's frowned on.

    Friend of mine got a position overseas and is busy packing up everything.
    He has a small car that is financed and he is willing to sell just to cover the outstanding.
    I'm in need of a car for my child and his installment fits my budget.

    Working for commission makes it a hell of a runaround to get my own financing.
    What is the situation if I wanted to take over his payments as is?
    Comprehensive insurance is a must, but not sure what the insurer will say.
    Contract signed between us?
    Is it even legal?
    Change of ownership papers signed in advance?
    If so, what else to look at?

    I'm sure I'll probably get killed in the comments, but it seems to be an option at the moment.
    To answer your question - no, it's illegal to sell a vehicle under HP Agreement to a 3d Party.

    The 3d Party being you.
    "Everything You See, I Owe to Spaghetti" (Sophia Loren)

  25. The Following 2 Users Say Thank You to Petri Oosthuizen For This Useful Post:


  26. #18
    Join Date
    Jul 2007
    Location
    Putfontein, Benoni
    Age
    51
    Posts
    2,698
    Thanked: 1907

    Default Re: Taking over payments on financing?

    Insurance is only part of the problem. It's just opening you and him up for trouble in the future. If the pawpaw hits the fan and you stop paying for example the bank is also coming after him, not you and he won't have the car. So to protect both of you - do it the right way and that is properly get a new loan from the bank in your name. All above board.
    Audi S6 - 2008 - v10 Quattro
    Audi A6 Avant - 2005 - 3l TDi Quattro - my daily
    Audi Q7 - 3l TDi - 2010 - steel suspension - wife's daily
    Audi 90 Coupe - 1995 - 2.8l V6 quattro
    VW Touareg - 2005 - V10 TDi Awd
    VW Passat CC - 2013 - 2l TDi bluemotion(repair project)

  27. The Following User Says Thank You to Stephan van Tonder For This Useful Post:


  28. #19
    Join Date
    Mar 2008
    Location
    De Wildt
    Age
    56
    Posts
    33,756
    Thanked: 9054

    Default Re: Taking over payments on financing?

    Quote Originally Posted by Petri Oosthuizen View Post
    To answer your question - no, it's illegal to sell a vehicle under HP Agreement to a 3d Party.

    The 3d Party being you.
    thanks, thought so
    2012 Jeep Sahara Unlimited 3.6 V6
    Percivamus

  29. #20
    Join Date
    Jan 2012
    Location
    Bethlehem
    Age
    52
    Posts
    6,975
    Thanked: 2709

    Default Re: Taking over payments on financing?

    Quote Originally Posted by Adam Stander View Post
    Not sure about the legality, but I do understand that it's frowned on.

    Friend of mine got a position overseas and is busy packing up everything.
    He has a small car that is financed and he is willing to sell just to cover the outstanding.
    I'm in need of a car for my child and his installment fits my budget.

    Working for commission makes it a hell of a runaround to get my own financing.
    What is the situation if I wanted to take over his payments as is?
    Comprehensive insurance is a must, but not sure what the insurer will say.
    Contract signed between us?
    Is it even legal?
    Change of ownership papers signed in advance?
    If so, what else to look at?

    I'm sure I'll probably get killed in the comments, but it seems to be an option at the moment.
    Adam, PM me or [email protected]

    Let's have you buy that car from your friend in your name, 100% in place.

    Chances are 99.88% that the Instalment will even be less.
    "Everything You See, I Owe to Spaghetti" (Sophia Loren)

  30. The Following 3 Users Say Thank You to Petri Oosthuizen For This Useful Post:


Page 1 of 2 1 2 LastLast

Bookmarks

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •