I took over paymts on a friends car, he is the registered owner. If I crash will he be liable? What can we do?

I heard of a document "Release of liability" but how does that work? Could he do the "Notice of Transfer" through DMV even though he's gonna keep his name as the registered owner? We contacted the insurance company, and they said If I crashed the car, my friend would be held liable. I just want to make the payments untill I can take out a loan to buy the car off of him. I don't want my friend to be liable for anything. HELP!! Also what type of form can we (my friend and I) sign stating that I am going to make the payments on the car, and within 6 months I will take out a loan and transfer the vehicle in my name? I don't want to get screwed by making the payments when the car is not in my name... Thanks
Additional Details
I heard of a document "Release of liability" but how does that work? Could he do the "Notice of Transfer" through DMV even though he's gonna keep his name as the registered owner? We contacted the insurance company, and they said If I crashed the car, my friend would be held liable. I just want to make the payments untill I can take out a loan to buy the car off of him. I don't want my friend to be liable for anything. HELP!! Also what type of form can we (my friend and I) sign stating that I am going to make the payments on the car, and within 6 months I will take out a loan and transfer the vehicle in my name? I don't want to get screwed by making the payments when the car is not in my name... Thanks

I live in Southern California

DANIEL S

Friend, or not, get that vehicle transferred to you IMMEDIATELY!! If he's the registered owner, his name is still on the title (along with a lien). If you ever have a falling out, that car is still his, & there's not a judge or court in the land that will tell you different! Even if you write out an agreement, if the title has his name on it, the car is still his.
Go to DMV & see what forms you need, & what you need to do.
Being that there's a finance company involved, you'll probably have to do something with them too, as they really own the car legally until it's paid off.
I know that you're trying to help your friend, & that's cool, but for your own sake, do it right.
You could be setting yourself up for a big burn. People get weird when it comes to deals like this, so cover all of your bases!!

Just Me

General rule ....... Never do business with friends or family!
If you cannot get the loan now, wait 6 months before you buy the car.

RiverRat

You are not insured and you having an accident will make your friend liable no matter what you sign and he will not have insurance because you are not insured on his/her policy...
Get the Insurance scenario Straightened OUT...and the money aspect of it put in writting (Contract w/notary)

buttrfly52

What you should do is have him add your name onto the loan. Then you can get insurance on it. He will still be held liable if your insurance doesn't cover everything. Then once your credit is good enough, you both can simply take his name off the loan and it will be completly in yours.

mikegarcialazavalamcallen

just put yourself as secondary driver of vehicle. if it has insurnace you should be ok unitl you can place car in your name.

Brad L

You definitely are entering murky waters here. It's amazing how quick money can and will ruin a friendship. I'm not sure what state you live in so I couldn't do a search of your local state laws. I will base the information on what I feel is applicable to all states (or at least my home state, Ohio).

Yes, if you crashed the car your friend and his insurance would be held liable. It really doesn't matter what form you sign as that is the way the law is. Now, of course, you could pay your friend the deductible and cover the cost of the increase in insurance...but man, that will get expensive quick. Not to mention if it is a bad wreck and someone is injured, you are talking about big money and liability.

You can really use any form as long as it is notarized. You could type something up stating all of what you said and then go to your local bank and have them notarize it. It will probably cost you $5.

What I highly suggest you doing is attempting to get a loan as soon as possible. It would solve all of your problems. There shouldn't be any credit problems that prevents you getting a loan now compared to within 6 months. If it is a financial issue, ask your friend to see if he will allow you to skip a month and then include that in the price of the loan.

Whatever you do, DOCUMENT everything. It will help to protect both you and your friend in most of the "worst case situations".

The best thing IMO that you can do is this. If this person and you have this trust thing and it's strong ya'll should have the car in your name. one accident could turn into a liability for your friend and maybe even lose that person as a friend. Get the loan, have your friend co-sign and all is done.

"/ J()â‚¬

You might just have your friend add your name to the registration.

You should should also type out an "agreement" regarding the payment and plans for the vehicle... make sure you make a copy for each person and also have a "witness" sign one too. have all printed and signatures on all copies... and also make sure you get a receipt from your friend after each payment. no excuses no exceptions sorry but you need to protect number 1-you.

Best wishes!

I have done this myself and it worked out nicely, i bought a friends truck and made out a agreement that we both read and agreed on, i then bought a recipe book for him to give me as i made payments.

"/JOe

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