Are you looking for a way to purchase a vehicle with either no credit or bad credit? There a few options available to purchase a car without perfect credit. Red Mountain Funding specializes in a variety of lending options for those who may not qualify for a traditional auto loan. One of those options that may not be well known is assuming the car loan of another individual.
This process may seem difficult without the proper guidance. Many traditional lenders will not allow you to take over car payments. That is where Red Mountain Funding can help you. We work to connect people with assumable auto loans and help with the necessary paperwork to protect both you and the current owner of the vehicle.
What Does Taking Over a Car Loan Mean?
You may have heard about this type of transaction and wondered exactly what it is. When a person finances a car and is unable to continue making payments or driving the vehicle for several reasons including loss of income or even military service that takes them overseas, they may not be able to sell the vehicle for what they owe on the loan. In these cases, they will look for someone who is willing to assume the payments until the loan is paid off. Once the loan is paid off, the person who assumed the loan will then be given the title to the vehicle by the original owner.
Where to Find Assumable Auto Loans
You may find several local listings to take over car payments on Craigslist. Before you make an agreement with an individual, you should contact Red Mountain Funding to help you with the paperwork involved. They will meet with you and the current loan holder to work out the details and ensure that both parties are protected in the deal. It is important to use a third party in these arrangements for your protection.
It is important to get all the details of the arrangement in writing including the loan term, payment amount, how payments will be made, and how insurance will be handled. Remember, a financed car needs insurance coverage that meets the requirements of the original lender until it is fully paid off. Most lenders require a vehicle to have full coverage until the final payment is made.
One of the most important things to agree on when assuming the auto loan is who will hold the insurance coverage on the car. When making this agreement, you should make sure to read the terms of the original loan. Some loans require the primary borrower to hold insurance on the vehicle while most state laws require the driver to be insured. This can cause an issue if you don’t have a written agreement regarding insurance. In some cases, the owner of the vehicle can add you as a driver on their policy or you may have to have insurance on the vehicle with them on your policy. Red Mountain Funding can help you understand the insurance regulations and make the right agreement for you.
No Down Payment
One of the biggest benefits of assuming a car loan is that you do not need a down payment. Most traditional and bad credit car dealerships will require a percentage of the purchase price as a down payment. If you are unable to make a down payment on a vehicle, you may want to look into assuming an existing loan. This type of vehicle purchase allows you to take over car payments with no money down.
One of the most difficult parts of financing a vehicle is getting a payment you can afford. If you c
hoose to take over car payments, you will be getting the interest rate of the current owner of the vehicle. This may make the payments more affordable with your current budget. Affordable car payments are one of the biggest benefits of this type of transaction. When searching for assumable auto loans, Red Mountain Funding can connect you with individuals who are looking for someone to take over their car loan in your price range.
Can’t Afford Car Payments, What Are My Options?
If you have found yourself in a situation where you can no longer afford your car payment, you may have wondered what you can do. You have three choices when faced with this problem.
The first choice is to have your vehicle voluntarily repossessed. This option can have a negative impact on your credit, making it more difficult to finance another car later down the road.
The second option is to try to sell your vehicle for what you owe on it. With the fact that cars lose value the moment you drive it off the dealership’s lot, this may be impossible in most cases. Most car owners are upside down on their loans and would need to sell the vehicle for thousands more than it is worth.
The third and easiest option is to have someone take over your existing loan. Often, there are people who are unable to get financing for a traditional loan or don’t have a down payment to purchase a vehicle. If you are looking to have someone take over your existing loan, contacting Red Mountain Funding should be your first step. We will help you find an individual willing to assume your car loan and take over the payments.
Red Mountain Funding is a family owned lending company that specializes in helping people get into the vehicle they need. We specialize in financing people with no credit or bad credit as well as helping individuals assume existing car loans with no down payment. We strive to help every person without the stress of traditional dealerships. Contact us today to find out how we can help you get the vehicle you need.