Board Topic: loans -auto-personnal
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loans -auto-personnal

Posted by: barbara Jun 8 2004, 12:01 PM
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Hello!
I'm a bit confused, can anybody help?
Are you allowed to apply for a personal loan (signature loan) and tell them the money is a gift for your child? is there a max. amount of money you can borrow without providing documentation supporting your loan request?
Secondly, if you apply for an auto loan, does the car have to be named after the person applying for the loan?
Thirdly, how can you later sell your car if it has a loan on it? nobody will want it, therefore if you want to sell it to pay your loan back you're stuck.
Thanx 4 your advice ! biggrin.gif

Posted by: loanuniverse Jun 8 2004, 06:04 PM
I will try to answer your questions to the best of my abilities, which in the case of consumer lending {auto and personal loans} is no more than an educated guess. I recommend you visit a consumer lender and ask these questions.

”Are you allowed to apply for a personal loan (signature loan) and tell them the money is a gift for your child? You certainly can. I don’t see why not.

”is there a max. amount of money you can borrow without providing documentation supporting your loan request?” This depends a lot on how much it is that you want, and exactly what it is that you don’t want to provide. There are lenders out there that will lend with no-income verification, but then again you are paying a premium in the form of a higher interest for that kind of loan.

”if you apply for an auto loan, does the car have to be named after the person applying for the loan?” This is a total guess, but I would guess that it could be possible as long as the car is still the collateral for the loan. However, this brings into play issues of “consideration”, and there might be some consumer laws prohibiting this practice. You are better off asking the consumer lender this question.

” how can you later sell your car if it has a loan on it? nobody will want it, therefore if you want to sell it to pay your loan back you're stuck.” Under the same principle of how you sell a house with a loan on it…. The buyer’s money will pay off the loan. This is a good question to ask the consumer lender = “If I decide to sell this car in a year to my friend, how does the transfer of title will happen?” Remember, you don’t get the title until you pay off the loan, the title remains with the bank until then. This means that part or all of the money that you get for the car will go to the bank.


Good luck.

Posted by: barbara Jun 9 2004, 03:39 AM
biggrin.gif Thank you very much for answering. What you say does makes sense. Now I'll ask the right questions when I'll ask for the loan.
Congratulations for this forum.
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