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I financed a car and have the title in my name only. My Significant other and I were making the payments together. I had been letting him drive the car while we were together, but after we broke up he kept the car and all the paperwork on the car.

I decided to not make any further payments and told him if he wanted to use the car then he needed to take over the monthly payments. After a few months I told him that he needed to put the car loan in his name, or someone in his family's. He refused claiming he had bad credit. I have a really tight schedule so I just left him alone and thought as far as he doesn't mess up my credit and makes payments on time I'm fine with it.

He has now let his auto-insurance expire and I no longer have insurance on it either. I know I am liable for anything that happens with the car.

I'm just 3 months away from graduation and I'm afraid that if he gets in any problem that I'm gonna be affected since the car is on my name and I won't be able to get my nursing license. Since he has failed to be responsible with insurance,

I want him to either take over the loan or give me back the car. He refuses to do either Or. What should I do?

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    You report it stolen. And have the police get it back for you
    – JTP - Apologise to Monica ♦
    Commented May 23, 2015 at 20:59

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There really is no option to "Take over the loan" you would have to sell him the car. How he finances it is not your problem. As a commenter stated, if he refuses to do so you can report the car stolen, or a less harsh option is to sue him for possession of the car.

In regards to the insurance you are correct. If he wrecks it, you will be the one the bank comes after to continue making payments even if the car is worthless. In theory, you COULD sue him for any damage to the car, but it doesn't sound like this guy has a lot of financial resources. So getting a judgement may not make you whole without years of continuing to hound him about it. In the meantime you will still be expected to keep making car payments.

Compounding the issue is that the lender probably has a requirement in your loan to have comprehensive coverage, unless it is fairly old or has depreciated a lot. I'm not sure what they will do if you break the terms of your loan, but they could theoretically force you to pay off the entire car loan immediately because you are in breach of contract.

Bottom line: Either sell him the car or use law enforcement/courts to force him to give it back. The whole idea of transferring the loan to him is a dead end route. Why would a bank switch a loan they already have to someone with bad credit willingly without jacking up the rate?

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    Often, in the USA at least, car loans have a clause that if insurance laps, the lender can take out insurance to cover their interests in the collateral, and bill the borrower. Liability for the borrower is not included and the prices tend towards high, so it behooves a borrower to maintain insurance.
    – Shannon Severance
    Commented Aug 17, 2017 at 0:00

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