August 07, 2006

Hi Tony

I have some very important car questions for you.

When I went to Hawaii to visit my boyfriend I ended up buying a new car for him and he was supposed to refinance in his name. At first I was just going to co-sign, but due to his credit they wanted just my name on the loan.

My question is, is there anyway to return the car so that I am not financially responsible for the car? Or could he try to co-sign with my name and return the car and pay the depreciated value of the car?

The car had very low mileage when we bought it. He has put about 4,000 miles on it so it has about 14,500 miles. Or would I have to get a lawyer to do anything further with this car dealership?

What do you recommend that I do?

Thanks for your time,

Karen

Answer:

Hi Karen,

Karen, I have a question for you: If your boyfriend's credit is so bad that they didn't want him on the loan in any way, how did you think he was going to refinance the car in his own name?

Since the car loan is in your name you are solely responsible for making the car payments and for keeping the car insured. If your boyfriend is actually making the payments in your name you better have him send you the money and then you forward it to the loan company each month. This is the only way you can be sure the payment is being made on time and that your credit rating isn't being compromised.

Even if you manage to refinance the car with you co-signing you will still be help responsible if he doesn't make the payments - and again your credit rating will be on the line.

You can't just return the car. The deal is done and it's your car.

The only way a lawyer can help you is if the car dealer did something wrong or illegal during the deal, and then you will have to prove it. If it's just your word against theirs you're not going to get very far. In any event from what you've said here the dealer did nothing wrong anyway.

The only sure way to get yourself out of this mess is to take possession of the car and put it up for sale. You may or may not be able to get what you owe out of it. But selling it is the only way to get out from under it. Of course you can always keep the car yourself and make the payments.

Karen, as long as the car is in your boyfriend's possession you are liable for the loan and you could be liable if he gets into a wreck with the car.

Good luck . . .

All my very best . . .

Tony Iorio