Need some financial advice

[oversam]

I have a friend (let's say A) who is using his name for a car loan that has 12 months COE left for a friend (let's say B). B is the one using the car and servicing the loan but recently he's been paying late, and not even responding to text/calls. A is a pissed off with B, so he wants to consider his options.

If he takes somehow finds and managed takes back the first car, he has to service the loan. A is also paying for a 2nd car loan he is using as PHV. The first car its not registered for PHV and has a much higher loan. It would be wallet damaging even if he sells off his first car.

If A reports the car stolen/missing, insurance would be not able to cover the loan so that's also wallet damaging.

If A does nothing and hopes B will continue to service the loan (12 months left), what happens if B can't pay? They will repossess the car and can the loan company bankrupt A?

What are your suggestions?

[johnnydsg]

Go and speak with the loan provider directly about the situation and find out what are the options.

[fallen11]

who is the legal car owner of B's car?

A is the loan owner, anything with the loan is A's responsibility.
I lend A $100. A use the $100 to buy something from B and it turned out to be a lemon. A asks B to return him the $100 for damaged goods. B goes uncontactable and doesnt return the $.
I ask A to return my $100 when its time. Can A dont return?
I lend A the money, A answers the loan to me. I dont care what A does with the $100.

Basically the financial liability fully belongs to A. I think you'll be considered lucky if B's car is repossessed, sold off and A come up with the money to make up any difference in outstanding loan. Cutting losses.
Who knows what further troubles B has for A.
What can A do with 2 cars? he cant drive 2 cars at the same time yet has to service 2 car loans??? better to sell it off.

[oversam]

That's the dilemma, my friend is trying minimze wallet damage. If car is repossed, my friend still responsible for outstanding loan or can he ignore?

[fallen11]

Originally Posted by oversam

That's the dilemma, my friend is trying minimze wallet damage. If car is repossed, my friend still responsible for outstanding loan or can he ignore?

look
if the car is not repossessed, your fren is liable for the remaining outstanding loan plus the upkeep of that extra car he wont drive which the value will go down everyday.
if it is repossessed, he is liable for the remaining outstanding loan minus the car value.

choose your poison.