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I want to sublease my vehicle and have someone else take over my loan. The truck will still be in my name but they will pay all insurances and truck payments on it. They want to write up all the documentation and have it notorized that they are responsible for everything on the truck. Once the truck is paid in full they want to pay an additional 2,000.00 on the truck to get the title from us. Is this safe? Should I do it?
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Your vehicle lender may not allow someone else to drive the truck. While I'm not encouraging that you technically breach the agreement, lenders generally don't care what you do as long as the payments are made. So, as a practical matter, it is possible for you to do what is proposed. If you wan to do it, I suggest having an attorney prepare an agreement that will provide as much protection as the law allows.
However, when someone else drives your truck, anything can happen. Potential problems are 1) they could get into an accident and the victims could sue you as owner 2) they could not make the payments, the truck gets repossessed, and you remain liable for the balance which becomes immediately due 3) you try and enforce the agreement but the other party successfully defends claiming that the agreement was illegal as you had no right to enter into it based on the lender's agreement.
Answered on Feb 14th, 2013 at 8:44 AM