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AR15.COM
1/30/2010 7:12:55 PM EDT
I will be selling my car to my brother since i will be going to Afghanistan. He has a new job but has a habit of loosing them. Here is my plan since my mother has already tried to sell the car(I am in Germany and the car is in NY). Here is my [;an for this. First I do not want to get burned or my credit destroyed. He will be giving me the cash to pay on the loan in my name.

The car and loan will remain in my name until it is payed off

He will give me 3 months of payments worth of payments. The 1st months and 2 months extra incase he looses his job or cant make a payment.

After the 2 months the car cannot be used until I have 2 months wort h of payments in reserve.

If after I have to use the 2 month reserve and he cant make a payment for 2 more months the car becomes mine again the deal is off.

All of this will be put in writing and signed by him and my mother using a special power of attorney or me

I am also thinking of adding in that if the car is not insured that it also be the same as not making the payments but with any lee way

I can afford this car easy as long as it is in the states but not while in Europe so its no big deal if I keep it. He cant get a loan so I'm just trying to help him out but stay protected. What I'm wondering is would this deal be legal and binding in NYS/Buffalo? Anything else I should add?





1/30/2010 7:31:19 PM EDT
[#1]
If the car is in your name and he gets into an accident, you are legally on the hook for 100% of the damages if somebody sues even though you are not driving.
1/31/2010 3:52:57 AM EDT
[#2]
Just went through this, every attorney I spoke to discouraged it. The bank with the lien also demands that the title/registration remain in the name of the person on the loan. You are liable for everything 100%
1/31/2010 5:07:09 AM EDT
[#3]
First, thank you for your service.

He is your brother, if he needs to use the car, will your (and his) mother stop him?

You are basically loaning him money. Money and family are never a good mix. My dad once told me to "consider every loan to a family member a gift, if you get paid back consider it a blessing, so never loan family money"