0
A straw purchase is when someone else signs for a car loan but the loan is being paid by someone else. For instance person "a" has bad credit and person "b"does not. Person "a"signs for a loan under the idea the car is for them, but it is actually for person "b." Person "b" then gives the car to person a to drive as their own. Person b is responcable for payments, but hopes person a will make them. This type of loan is not allowed. If a dealer knows this is taking place, they will not sell the car.
Wiki User
∙ 10y ago
Add your answer:
Earn +20 pts
Car Loans?
form_title=Car Loans form_header=Get a car loan with low rates and flexible repayment terms for new and used vehicles. Request a car loan today! Desired Loan Amount?*= _[50] Application type?*= () Joint () Individual Loan Type?*= () New Purchase () Used Purchase () Refinance Loan How would you rate your own credit?*= [] Poor [] Fair [] Good [] Excellent
If you file for bankruptcy and your car is repossessed can a friend take a loan out for you to purchase a car?
Of course, it won't legally be your car however.
What happens when your purchase a car and the auto loan does not go through after you have the car of 3 weeks?
Same thing happen to me. You have to retun the vehicle or find a loan from another company.
Will a bank buy back your car and pay on the auto loan for the amount of purchase?
yes
Is it legal for a Credit Union to demand payment on a loan you got to purchase a car when they do not have the title for it?
IF you signed a loan with the CU and used the car as collateral, YES IT IS LEGAL. And it is WISE for you to pay.
Can someone else take out a loan on a car for you?
This is called a 'straw' purchase. It does happen in the industry, but the banks do not allow it.
Is buying a car for your child a straw purchase?
only if you use a straw
How can I take my name off a straw purchase on a car loan?
If you co-signed a car loan you can't take your name off the loan. If you co-sign for someone with no credit or poor credit you are promising to pay off the loan if they don't. The only way to get your name off the loan is to pay it off or have the borrower refinance the loan in their own name.
Are straw purchases of a car legal in CA?
No automobile straw purchases are not legal in California. Straw purchases are attempts to intentionally defraud a lender and if found out the car loan could be void.
What is a straw buyer for a car loan?
a straw buyer is someone who uses someone else's credit to secure a car loan (and car) to drive for themselves, knowing that the person whose credit is being used has no intention of driving the car and ultimately may not be responsible for the payments. It is often illegal for a straw buyer to be the only insured driver of the car.
Can you finance a car in your name only for a friend but not have your name on the title?
NO PROBLEM. IF the lender will let you sign the loan papers, you ARE responsible till death do you part. DONT DO IT. GIVE them a cheap PAID FOR CAR and let them SAVE to buy their own. Good Luck You may be able to keep your name off of the title, but the bank will probably insist that your friend also sign the note. Actually, financing a car for another person is called a straw purchase, and most, if not all finance companies will not allow it if they know it's a straw. In a few states, straw purchases are actually illegal. Before anyone mentions this: Co-signing is not the same as a straw purchase.
What are the benefits of car loan calculators?
The benefits of a car loan calculator are that they help you have a clear view of the cost per month and the down payment required to purchase a car.
Car Loans?
form_title=Car Loans form_header=Get a car loan with low rates and flexible repayment terms for new and used vehicles. Request a car loan today! Desired Loan Amount?*= _[50] Application type?*= () Joint () Individual Loan Type?*= () New Purchase () Used Purchase () Refinance Loan How would you rate your own credit?*= [] Poor [] Fair [] Good [] Excellent
What are the advantages of having a car loan?
One of the advantages of having a car loan is that it allows people to purchase a car if they do not have all of the money right away. Another is that they can take years to pay them off depending on the loan.
Where can one find car loan quotes online?
Car loan quotes can be obtained from Halifax, Fairinvestment, Nationwide, Carloan4u, Confused, Carsite, Moneymatchmaker and LloydsTSB. Most of these sites will then allow you to purchase a car loan.
Where can we get a car loan rates quotes for free?
I recommend roadloans.com. The site allows you to get new and used purchase loans, Refinance loans, a loan for a purchase for an individual, and a cash-back refinance loan.
If you file for bankruptcy and your car is repossessed can a friend take a loan out for you to purchase a car?
Of course, it won't legally be your car however.
