Take Over Payments On a Car?

I had a car that i could no longer afford payments on, so i found someone to take over the payments for me. The vehicle remained under my name and we made a contract that basically stated I would not take back the car unless payments were not made on time, and that the other party was responsible for all repairs and insurance. Everything was ok for a few months, but now the person has not made a payment in two months and has moved from their previous address. I contacted the police and they said it was a civil matter... What recourse do I have? Can I sue? If so what can I sue for, since the loan is technically my responsibility. Do I need to make payments untill I can get the car back? And lastly, should I tell my finance company? And in case laws vary by state, I'm in Dallas, Texas....

>> What recourse do I have? <<

It's still your car. You have the right to recover the car (if you can find it) and the obligation to continue making the payments.

You can sue him for what he owes you.

That will be the payments he's missed. If you put language into the agreement (you DID put it in writing, yes....... ?) that says you can ask for late fees, etc, then you can sue for those too.

The agreement between you and him does NOT remove your obligation to the finance company - YOU still owe the money to them, it's up to you to pay them, and get the money from the new owner.

Incidentally... did you be sure to get proof that he bought, and has kept up, his own insurance? If you didn't, and is in an accident, YOU are still going to be liable.

Richard

You can sue, but I don't think you'll get much. You made a serious error in judgement, but you can fix it. I would probably consult someone in the legal profession.

howdy fellow Texan,

do you have a copy of this person's driver's license? If so contact your finance company and tell them the situation. They will further instruct you as to what to do. Furthermore you are ultimately responsible for the car since you are the one on the contract. I hope that the car was insured... otherwise it seems that even if the car is reported stolen without insurance you're out of luck. Sorry