Why can't the company let you drive your own and help you pay for it since you're not using theirs? Ask them how that will work. I can't believe you can't pay for your own vehicle you will keep. What's going to happen after you quit this job after six months, too?
Are there ways to get insurance coverage with your friend driving the car? Yes, but they are technically fraudulent and it would require both of you lying about what interest he has in the vehicle and not disclosing that he is driving the car on a day to day basis and assuming your payments. It is very dicey and in my opinion fraud. The other option is to have your friend added as an authorized used but some insurance companies only allow authorized users at the same address or relations. I see what you are trying to do and understand why. You are just playing with fire. What is the likely hood that he gets in an accident and says the wrong thing? You then are looking at a Declaratory Judgment suit filed by your insurance company alleging that there was no coverage.
Alright if he cant get the loan on his own then why dont u try to add him to the loan? and u be the cosigner. U are obviously approved since its already in your name. Worth a shot.. this way he can get the insurance he needs and u get to feel a little safer about the whole thing. Granted, if he stops paying youre still gonna be on the line, but at least there will be a chance of some protection for you. All that said, cosigning is never advised.. but hey nothing you are thinking of doing is legal so this is at least that.
Not trying to stir the pot, but I don't understand how this is not legal. If the note is getting paid, and the vehicle is insured, where is the illegality. Aside from the relationship, isn' it similar to a parent buying a vehicle for an adult offspring that has moved out? I will say it will definitely put a strain on your friendship if you ask for a contract, or if he fails to make payments, but I also understand that you want to help your friend out and reduce some of your payments. Sounds like a win win if all go according to plan, but it can easily deteriorate into a lose lose where you lose a friend and have to go back to paying on the vehicle.
If you have to ask you haven't learned this lesson yet. Go ahead, everything is awesome and always works out!
While it is probably not illegal in a criminal sense, it probably violates the terms of the original loan agreement that the OP signed. The problem I see in all this (which others have mentioned), is that the OP will retain title to the car and in that sense has responsibility for the actions of the friend. For example, my elderly mother actually sold her car. She trusted the other person to do the title paperwork as she had sold another car to the same person and it was done in a timely manner. Prior to that being done, the buyer was caught via red light cameras (while they were still being used). My mother was sent the tickets. We were able to get them dismissed but had to jump through a few hoops. Even if the friend commits innocent infractions or accidents, the OP may be held to some accountability or responsibility.
I hope you trust him. I did this for a friend. He let his girlfriend get drunk and take the car out. Totaled- he refuted responsibility and I took him to court.
How close are you as friends? Irrespective, keep in mind these things can end lifelong friendships. This recent thread comes to mind. http://bbs.clutchfans.net/showthread.php?t=258017
if this is someone who you are looking to not be friends with anymore then i say go for it...this will be the perfect way to ruin your relationship! <iframe width="640" height="360" scrolling="no" frameborder="0" src="https://screen.yahoo.com/bad-idea-jeans-000000942.html?format=embed" allowfullscreen="true" mozallowfullscreen="true" webkitallowfullscreen="true" allowtransparency="true"></iframe>
Just because his income to debt ratio isnt good, doesnt mean he cant make payments. Im willing to bet that my income to debt ratio is the worst out of all of us here. 300k in school debt...and 2 businesses that have a total of 1.2 million in bank loans. Based on my income/debt...I would probably not get approved for a lot of things...yet, I still have a disposable income that can allow me to make any car payment that I would need to make. It's all about cash flow.
Ignoring your friend's need for another car, this seems to be the most obvious question here. You are getting a "free ride" by virtue of your current job (maybe not free, but part of compensation). That should help negate the upside down nature of your debt. To me, that means: 1. Ask your company if they will just pay you more and not give you the "free ride". You then drive your truck and continue to pay it off, now with the extra compensation you've been given. 2. Sell the truck for as much as you can. Fund the balance yourself either at close, or try to find a small personal line from somewhere. IN EFFECT, you are just going to be actually paying for your "free ride" from work for a little bit. Eg, if you were short for example $3,600, and found a way to pay that off over say a year, then it is just as if you are paying $300 a month towards your car allowance from work.
Debt can be a good thing...Donald Trump has built an empire off accruing debt. Like I said, it's about the cash flow, not the debt. If you owe someone 5 million over the course of 20 years, but make 1 million a year...you'd be able to laugh to the bank. However, if you owe that much and make 50k a year, it would suck. In my position, I wouldn't have the cash flow I have if it wasn't for the debt, so I'm not only fine with it, but hoping I can accrue more debt for additional businesses.
