Before opting for this agreement, look online for a written agreement that you can customize according to your needs. This document is generally considered a sublet and you may want to contact your lender or read your car credit details. Lenders cannot accept a sublease agreement and consider you in violation of the terms of the loan. Once you and the friend who will take care of your payments, sign both and hope that everything will be fine. It may work, but if they stop sending you money, not only are you stuck with a monthly car payment you can`t afford, you might have to “get back” your car from that friend. It usually doesn`t end well. Circumstances change; Jobs are lost, incomes are reduced and life happens. Bad news is never welcome and is usually not expected. If for some reason you`re not able to pay your monthly payment, you might feel like you`re stuck between a rock and a hard place.
The choice is limited. If you continue to be late in monthly payments, your creditworthiness will decrease more than it already is and you may regain possession of the car. The second way the model can help you is that you can negotiate with your dealer for the resumption of the loan from him. Many people have found this option very effective. Instead of making much higher monthly payments than they used to before, they can reduce their monthly payments to zero. This is beneficial both financially and for the exit of your car financing contract with the car dealership. . .