My Mom has a car loan with Great Basin that has a balance of about $6,800. Mom had a stroke and will not drive anymore. She wants to give her granddaughter the car and take over payments. Can you please advise the proper way to handle this. I want to make sure the car and car loan will no longer be in my Mom’s name.
I am so sorry to hear about your mom’s stroke. I imagine it is difficult for her to give up the freedom of driving. You ask a great question and I appreciate you trying to do what is best for everybody.
There are a few reasons that it is best that the car gets refinanced out of your mom’s name. First, the insurance and registration should always be in the name of the driver to ensure proper protections for unforeseen circumstances. Heaven forbid there was an accident, your mom could be held liable if the title, registration and insurance are in her name. The second reason it is best is because if the granddaughter did not make timely payments, your mom would continue to be responsible and her credit would be impacted. Finally, if your mom were to pass away, it would be difficult (but not impossible) to transfer the title into the name of the next owner, which could be stressful.
I recommend the granddaughter contact the credit union and explain the situation. We could get an application started for her to see if she can qualify on her own. If her credit us not strong enough individually, we can always consider a cosigner. If she is able to qualify individually, the process is very simple and could be complete in just a day or two. Please have her call the loan department at 775.789.3171 to get started today, they will help walk her through the process. Tell them that Jennifer sent you.
Thank you for just asking Jennifer!