If you're going to start paying the note on a car, I'm assuming you're going to buy this car from your friend. If you do this and the title stays in his or her name until the loan is paid off in full, you should have a contract prepared to make sure that your friend holds up his or her end of the bargain before you begin making any payments. The risk to you if you don't is that he could simply keep his name on the title and have the car repossessed because it is still in his name. Also, the risk to him or her is that you could stop making payments at any time and reneg on the deal. In any case, I think the best thing for you to do is speak to an attorney before you get into this deal because there is some risk involved in purchasing a vehicle that still has an outstanding loan.
Answered on Aug 06th, 2013 at 2:24 PM