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Thank you for the additional information. Unfortunately, there is nothing you can legally do at this time to protect yourself. The loan is in your name and the registration is in your name until the loan is paid off. You just have to hope that he fulfills his part of the agreement by paying for the loan and making sure that your credit is not ruined. Regrettably, there is nothing for him to sign to relieve you of liability on the vehicle. If he gets into accident, the insurance would cover it and anything not covered by the insurance would become your responsibility unfortunately. You may then sue him at that time for reimbursement. However, without any prior agreement of his responsibility, the Court would be hard pressed to rule in your favor. Nevertheless, you can send a simple note to him summarizing your agreement with him that you did him a favor by being the primary on the loan. That you do not need or want the car. That he needs to make sure to make his payments on time and once the loan is paid off, you would transfer registration to him. You can ask him to sign to acknowledgment that the summary represents your arrangement. If he refuses to sign the acknowledgment, there is nothing you can do.
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