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Is there a reason this man can't simply purchase the car from you by getting independent financing? Thanks.
Thanks for following up. I would not suggest you do this as it's fraught with peril for you. Although you may have a contractual relationship with him, this would not be binding on any third parties, so if you would end up with a situation where a third party files a claim against you as the owner due to something he's done, you may have a claim against him, but if he's broke, you'll end up on the hook. You simply don't want to leave a car and a loan in your name when you don't have possession of the car. Your insurance company could deny coverage if it discovers he's the actual owner; if he totals the car and the salvage value is less than what is owed, you'll be on the hook for the loan; if he causes a bad accident in excess of the insurance coverage and/or where his acts are such that the insurance company denies the claim, you're stuck. If he's going to buy the car, he really needs to get a loan, take title, and get your loan paid; otherwise, I would suggeest you sell it to a more conventional buyer.
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Yes, because it's only binding between the two of you. If there is a third party claim, they can sue you as the owner. You may have a claim then against your buyer, but if he's broke...which I suspect or he would be able to get his own loan to buy this car....then you're left holding the bag.
First, I would suggest you find a conventional buyer that can get independent financing. Second, if you really want to do a deal with this guy, I would act as the lender and transfer title to him and have him issue you a promissory note and security interest in the car. The problem with this is that it's likely to trigger your lender calling your loan. Alternatively, you could co-sign a note for him with the note and security agreement. At least that way, you wouldn't be on the title. But, this is a poor second choice.
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