My wife helped our son buy a used 2004 Ford Escape a few months ago.
She qualified for an under $10,000 loan. He pays her the monthly payment
every month and she send it in to the loan company.
The vehicle is in her name and so is the loan. She wants to get everything
out of her name and have his name put on the vehicle and the loan.
How do we do this? I figure that the California DMV can just do a transfer
of registration, but what about the loan? If he has bad credit, is that an
impossibility?
Any help will be appreciated.
Thanks

Dave

 

Dave, what you described is your wife bought a 2004 Escape.

Seems like it would be as simple as your son buying the car from your wife.

If his credit isn't good enough to get a $10,000 loan maybe you could co-sign.
It would get your wife out of that note.

 

Unless your son can qualify for a loan on his own to purchase the vehicle from your wife, things will remain as they are.

 

If there is enough equity in the car, and the loan officer is helpful, it can be done. I understand the situation your experiencing. But he will need a co signer. So if he defaults the balance will still return to your budget.
Having him on his own insurance would also help you in the way of liability in case of an accident.
My son had an accident in a truck i bought him, he had been driving about a year and rear ended someone while tinkering with his stereo. There wasn't a lean against the truck , so I immediately transfered the title to his name, and got expensive liability insurance for him. That way I'll never be held liable for his driving.

 

If there's a lein on it from her loan, it's staying in her name until that's paid off. If your son has a job and decent credit, I'd had him try to find a credit union as opposed to as bank for a loan. They tend to be more lienent on loans and also have better finance rates. That's been my experience.