Q: Is it safe to give a car under affidavit if I still owe on it?
I'm giving away my car loan but the person interested recently opened up a business and can't get the loan transferred. Is it safe to give him the car for a year (minimum requirement on his business loan until he can get approved for other loans) under affidavit? I am unable to pay the car and I would prefer to protect my credit but I don't want my ignorance to be my downfall.
A: Good morning and thank you for using JUSTIA. The two main downfalls are that you will remain the registered owner of said vehicle and the principle debtor to the loan. This means that you are the responsable party for any damage that the vehicle causes and in the party responsable for the monthly payments to the bank loan.. If the person fails to pay the loan or has an accident and causes damages, you will be the responsable party thus this may affect your credit rating anyway. Although you will have legal recourse against the person who has the vehicle, if they have no money or claim bankruptcy you will not be recompensated for your losses. It is not recomendable to do this type of transaction.
A: No. You have no protection or recourse in the event of default.
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