My question involves a consumer law issue in the State of: Illinois
Situation: Two months ago my dad lost his job and was unable to make payments on his vehicle (truck). I originally co-signed on the truck loan when he took it out so I was already listed as a co-owner of the truck. Because I was afraid that the truck might be repossessed if he missed any payments, I took full possession and ownership of the truck (we removed his name from the title so that I am now the sole owner listed, and I changed the registration of the vehicle to just my name as well). Since I now "own" and am driving the truck, my girlfriend and I had an extra car - a car that she owns (i.e., the car is paid off and she has the title). So we agreed to let my dad borrow her car for the past few months.
My girlfriend and I are now trying to come up with a reasonable long-term plan for her car. We don't just want to let my dad have the car - it's in good shape and we don't mind helping him out, but we don't want to just lose money on a perfectly good car that we could otherwise sell. We also don't want to be liable if my dad should do something stupid and either get in an accident and injure someone or damage the car and not be able to pay for it. So we've been working out two possible agreements: one is a borrow option, the other a purchase option.
For the Purchase Option, we are considering putting my dad's name on the title and then listing my girlfriend as the lien holder. That way she would keep the title, and allow her to legally take possession of the vehicle if he doesn't pay us. For this option I want to make sure that this also makes certain that we are not liable if my dad does not keep adequate insurance on the vehicle or accidentally hurts someone else while he is driving. I'm wondering if this is a viable option and what limitations there are to doing this.
The Borrow Option is trickier for us. We don't want to put my dad on the title, but we don't want to be liable for anything that might happen with the car while it is in his possession. We are also writing up borrowing terms and an agreement, but I'm not sure how enforceable that would be. Will we also need to keep insurance coverage on the vehicle if he is borrowing it, or will his insurance be adequate to protect us? What, if anything, can we do to make sure that while he is borrowing it we are not liable? Our long-term plan is to limit (in writing) how long we are letting him borrow the vehicle so that he can't say we gave him the car.
We have given my dad a few weeks to decide which option he wants to pursue, then we will execute the agreement. I'm hoping to get some help, legal advice, suggestions, etc. in the meantime while we develop an agreement that best protects my girlfriend.
Situation: Two months ago my dad lost his job and was unable to make payments on his vehicle (truck). I originally co-signed on the truck loan when he took it out so I was already listed as a co-owner of the truck. Because I was afraid that the truck might be repossessed if he missed any payments, I took full possession and ownership of the truck (we removed his name from the title so that I am now the sole owner listed, and I changed the registration of the vehicle to just my name as well). Since I now "own" and am driving the truck, my girlfriend and I had an extra car - a car that she owns (i.e., the car is paid off and she has the title). So we agreed to let my dad borrow her car for the past few months.
My girlfriend and I are now trying to come up with a reasonable long-term plan for her car. We don't just want to let my dad have the car - it's in good shape and we don't mind helping him out, but we don't want to just lose money on a perfectly good car that we could otherwise sell. We also don't want to be liable if my dad should do something stupid and either get in an accident and injure someone or damage the car and not be able to pay for it. So we've been working out two possible agreements: one is a borrow option, the other a purchase option.
For the Purchase Option, we are considering putting my dad's name on the title and then listing my girlfriend as the lien holder. That way she would keep the title, and allow her to legally take possession of the vehicle if he doesn't pay us. For this option I want to make sure that this also makes certain that we are not liable if my dad does not keep adequate insurance on the vehicle or accidentally hurts someone else while he is driving. I'm wondering if this is a viable option and what limitations there are to doing this.
The Borrow Option is trickier for us. We don't want to put my dad on the title, but we don't want to be liable for anything that might happen with the car while it is in his possession. We are also writing up borrowing terms and an agreement, but I'm not sure how enforceable that would be. Will we also need to keep insurance coverage on the vehicle if he is borrowing it, or will his insurance be adequate to protect us? What, if anything, can we do to make sure that while he is borrowing it we are not liable? Our long-term plan is to limit (in writing) how long we are letting him borrow the vehicle so that he can't say we gave him the car.
We have given my dad a few weeks to decide which option he wants to pursue, then we will execute the agreement. I'm hoping to get some help, legal advice, suggestions, etc. in the meantime while we develop an agreement that best protects my girlfriend.
Sales Agreements: Sticky Situation While My Dad is Borrowing My Girlfriend's Car
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