I’ve performed this. A pal had a 2016 Impala. After her job was outsourced, she had no means of creating the fee on her automobile. So, I took possession of the automobile. Nevertheless, it wasn’t money and carry… I refinanced the remaining stability of that mortgage, put a considerable down fee on it, and I had it paid off in 14 months. Having that further earnings from stripping on the facet pays off, in spite of everything.
Principally, the one approach you should buy the automobile from them is fraudulent. It doesn’t relieve the debt of the mortgage that was taken out to purchase it, nor does switch the registration and insurance coverage to you negate the lien holder’s proper to remedy (repossess). If the mortgage your pal took out continues to be delinquent, then sure, the financial institution can and can repossess the automobile.
The financial institution is the entity that holds the title to that automobile. You actually can’t purchase it out of your pal, as a result of your pal doesn’t maintain a title for that automobile. You’ll be able to take out a mortgage in opposition to the remaining stability and make your personal funds, however you received’t be capable to purchase that automobile free and clear in any approach which doesn’t contain caring for the unique mortgage. Worst case state of affairs, your pal takes the cash, defaults on the mortgage anyhow, and then you definately’re left with a automobile you don’t personal and which the financier can be trying to snag.
Your query really isn’t an uncommon one… once I labored in towing and restoration, we’ve had multiple occasion the place individuals would do this, considering they’ve discovered a loophole to beat the system. Nope, it did no such factor.