Join Date: Jan 2007
Location: Sacramento, CA USA 96814
Here's the problem - the debt owed on an item of collateral travels with the item, so any remaining payments or principal that is due becomes your responsibility, even if he pays it.
Yes, there is a process for transferring payments and interest in a vehicle through the financial institution, and it's done all the time, but that process involves transferring the financial liability from him to you. Personally I wouldn't touch it but if you're determined to buy that bike here's what I'd do:
1. Find out how much remaining balance is due on the bike.
2. The true cost of the bike is $5,500 + whatever remaining balance is due. Subtract that from the $5,500 you pay him, and use it to pay off the remaining balance upon transfer. That's fair, if it was his intention to pay off the balance anyway. Remember, it becomes your liability.
3. The bank will then transfer the title to you. Send it to the DMV to get a clear title in your name.