How To Drive Any New Car With No Money Down And No Credit Check

DRIVE A NEW VEHICLE WITH NO MONEY DOWN & NO CREDIT CHECK
Introduction
Where to Find The Vehicle of Your Choice
Making the Initial Contact (Common Questions and Answers)
The Face to Face Presentation
Closing the Deal
Paperwork and Insurance
Definitions
Suggested "Assignment Agreement"
Telephone Information Sheet
Assignor/Assignee Responsibilities
Power of Attorney
Uniform Commercial Code, Article 9, Section 311

INTRODUCTION
David has a car that he no longer can afford and it may be repossessed. Sally would like to own David's vehicle and can afford the payments but can not afford a loan because of her bad credit. Is this a problem?
No, Sally will assume David's vehicle payments and insurance with no money down and no credit check.
Why would David agree to this kind of exchange?
Ideally he would sell his vehicle for cash and pay of his loan but there are several reasons that ma be preventing him from doing this including:
The vehicle has high mileage and he would never get more for
Unable to show his vehicle to a prospective buyer (because of work, school or other conflicting situations.)
He is in a area experiencing a soft used car market.
He put very little money down and his vehicle has high kilometers. If David sold his vehicle for cash, he would never receive close to what he currently owes on the loan, and who take a substaintal financial loss.
He may have financed his vehicle for (60-72 months.)
What Are David's Choices - Traditionally the owner has very few choices. He can sell his vehicle for market value, pay the lien holder difference in cash and take a major financial loss.
He could let the vehicle go back to the lien holder and take repossession. Repossession will seriously damage his credit history for seven years.
Therefore by letting Sally take over David’s payments, this becomes a win-win-win proposition for all.
Sally wins as she drive a vehicle no money down and no credit check.
David wins as he no longer faces a financial loss or fear of repossession.
Lien Holder wins the lien holder will not have to take a financial loss on the vehicle by repossessing it.

SUGGESTION ASSIGNMENT AGREEMENT
The Suggested Assignment Agreement included in this information package is a Suggested Assignment only. There may be provisions added or deleted to the agreement between you and the assignor (owner) to make the transaction acceptable to you both.
The assignment agreement is between you and the owner of the vehicle. The vehicle remains titled in the owner's name until all payments are made and the original loan is paid off.
At this time, according to your Assignment Agreement with the owner, they have to sign the title over to you within thirty (30) days after the car is paid off.

LIEN HOLDER PURCHASE AGREEMENT
This type of transaction is very common with Real Estate. Typically, the owner of a house will rent their property and still be solely responsible for the monthly mortgage payments. The payments are being made although the owner is not living in the house. The
Renter, has a contract between them and the owner, not involving the mortgage company.
Some purchase agreements from the lien holders may have provisions against subleasing or assignments, claiming it would be a default-of contract. Many disregard this provision and do not contact the lien holder for their approval, claiming that as long as the payments, insurance and vehicle maintenance were maintained, the assignment of the vehicle would fulfill the lien holder's requirements. They feel it would not be necessary to inform the lien holder of the transaction. We recommend that you contact the lender in writing to inform them about your agreement.

YOUR SUCCESS IS GUARANTEED
Using this system, an individual can obtain a vehicle on merits such as character and ability to pay, rather than credit history. There are no turn downs, everyone qualifies because a credit check is never done. You must be persistent, make several telephone calls, and always project a positive image over the telephone.
UPSIDE DOWN OR NEGATIVE EQUITY
Let us take this opportunity to explain what is meant by Upside Down or Negative Equity. Let's use the following as an example: Say the owner of a car owes $12,000 to the bank for the payoff of his car. The average retail value of the car (what a car lot would sell the vehicle for) is $10,000. If the vehicle is selling at a car lot for $10,000 few people would be willing to pay $12,000 that they owe. The loan value on this car (what the bank will loan someone with good credit) may be only $8,000. This means that if a person with good credit wanted to buy this car for $12,000, they would have to borrow $8,000 from the bank and would have to come up with another $4,000 in cash to satisfy the lien holder.
EXAMPLE:
Payoff to Lien Holder $12,000
Average Loan Value $ 8000
Average Retail   $10,000
Difference (in cash) $2,000
or negative equity
The seller will have a difficult time finding someone who is willing and able to put $4,000 in cash down for a used car. A buyer with good credit can go to a dealership and get a new vehicle with only a few hundred dollars down. So, the chances of the owner selling the car to a person with good credit are none.
By explaining (Upside Down, Negative Equity) to the owner, you will let them know why they are having problems selling the car and that they may only have three (3) options left at the point.
Option #1: Sell the car for market value of $10,000 and pay the diffrence out of pocket.
Option #2: Turn the car back to the lien holder for Repossession. This option will ruin the credit status of the owner for seven (7) years.
Option #3: Let you assume their responsibilities of payments and insurance, save their credit status and not have to pay the negative equity of $2,000.

FIVE STEPS TO GETTING THE VEHICLE AT THE TERMS YOU WANT
STEP 1: Find The Vehicle You Want - You need to find the vehicle that you want. This can be accomplished using the local newspaper, auto trader advertising magazines, or any other publications that lists vehicles for sale.
(Note: Finding an individual who is upside down or in a negative equity situation on their vehicle loan is easy. Most cars within their first three years of their finance contract are in this situation. You may even have a friend or family member in this situation and they may be the person you want to approach.
To get the true book value of the vehicle you will need the NADA Book, (National Automobile Dealers Association.) You can obtain this book from your library. The NADA book is published monthly and will give you the amount that most banks will finance on those models. If the payoff amount on a car is more than the NADA retail book value, then you will know this seller is in an UPSIDE DOWN position and will be very interested in talking to you.
STEP 2: Making The Initial Contact - When you have identified several cars that you have an interest in, you are ready to make the initial contact with the owner. Throughout this conversation, your goal will be to find out if the owner is in a Negative Equity Position (or upside down) on their vehicle. Best results are obtained if the owner is just asking for what they owe on the car.
A Typical Telephone Conversation May Go As Follows:

Caller: Hello, I m calling about the car you have advertised in the paper. Is it still for sale?
Owner: Yes.
Caller: Can you tell me about it, what color, mileage, options, etc. Are there any nicks or scratches?
Owner: (The owner will normally give you all the information, except for the price of the vehicle.)
Caller: How much are you asking for the car?
Owner: $12,188.00
Caller: Is that what you owe on it?
Owner: (Answer) Yes or No
Caller: (If the answer is Yes, ask how long have you been trying to sell the car.) The reason I'm asking these questions is because I would like to take over the payments on this type of car. How much are your monthly payments?
(Try to get a feel for how badly they want to get out of their car. If this vehicle sounds appealing to you, and you sense the owner is flexible, set up an appointment to look at the car.)
(If the answer is No, the owner may have put a large down payment on the car, and it may not be in a Negative Equity Situation, or they may not owe anything on the vehicle at all.
Be persistent, as you may have to make 20, 50 even 100 telephone calls to find a vehicle owner willing to assign their vehicle. However, there are thousands of desperate people needing to get out of their vehicles in every area of the country. It's also a good idea to call the owner back a week or so after your first contact. The longer they hold onto their vehicle, the more eager they will be to work with you.
STEP 3: The Face To Face Presentation - The owner will normally want the car out of their name. Their credit is riding on you making their payments. You will need to show them that they are secure and protected in dealing with you. When meeting face to face, it is extremely important that you present yourself in a professional manner. Treat this meeting as you would a job interview. This person is essentially giving their approval of you to assume his $12,000.00 to $17,000.00 investment. Look Sharp.
Once you have seen their car and feel that it is what you want, you are ready to make a proposal. Explain to the owner that you earn a more than enough income to afford this car payment, but you can’t get financing from a bank, because of some credit problems that you hand in the past. Tell them strengths about yourself that shows your stability and credibility such as:
Length Of Residence In Your House Or Area.
Length Of Current Employment.
Job Description Or Job Title.
Home Ownership If Applicable.
The Reason For Your Credit Problem.
If You Paid Back Past Creditors.
What Your Income Level Is With Bonuses, Future Pay Raises.
Or Possibly A Job Promotion
Describe what makes you a good risk. Let the owner know that you are building their equity in this vehicle, until you pay it off. The more payments you make, the less will be owed on it. Give them a copy of the enclosed credit report, personal references and a copy of your driver's license. Allow them to verify your employment and that you make you rent or mortgage payments on time. Show them a copy of the suggested Assignment Agreement.
Common Questions Asked By The Owner Or Assignor And Answers To Those Questions:
Question: What if you wreck the car?
Answer: The insurance company will issue a check with both your name and the lien holder's name on it. This check will be applied towards repairing the vehicle.
Question: What if you get a ticket while driving this car?
Answer: Any points are charged to my individual driver's license, not to the car.
Question: What if you hit someone?
Answer: The Suggested Assignment Contract states that I am driving the vehicle, and I am responsible for all liabilities. Your liability is limited because I will carry liability coverage or whatever your Purchase Agreement with the lien holder requires, which will protect you. As the owner of this car, you are put in the same position as an independent leasing company or car rental agency. You own the car, but your not driving it.
Question: How do I know that you’ll make these payments?
Answer: You’ll receive a cashier's check or money order made out to the lien holder at least ten days before your due date. If I'm late, you have the legal right to take the vehicle back, believe me I don't want to lose it. The agreement basically states that I will make the remaining payments or pay it off early, as long as I do this you are under contract to sign over the title to me. Nothing hidden, no surprises, it's just fair and legally binding.
Question: Why do my tags stay on?
Answer: You are still the legal owner, just as leasing companies and rental agencies are. I am the one who is primarily liable for what happens while it's in my possession.
Question: What if you move and cannot be located?
Answer: You have a list of personal references, my driver's license number and my social security number, any repossession firm could track the car in a matter of hours. I can understand your concern, but let me assure you that I have no intention of going to jail for car theft.
STEP 4: Closing The Deal - Once you have satisfied all the owner’s questions, and have subdued all fears. You need to get a commitment. If the owner will not commit and wants to think about it, find out when the due date is for the next payment. The closer they get to the next payment, the more flexible they will become. If the owner remains undecided, you may try offering them concessions. You could offer to make a whole payment or two payments in advance. They may request some kind of security deposit, which would be held for damages. At this point, be creative and willing to empathize with the owner's concerns.
STEP 5: Paperwork & Insurance Limited Power Of Attorney - This form needs to be signed by Assignor and notarized by a Notary Public. It gives the Assignee the authorization to sign on behalf of Assignor in matters concerning the vehicle. (To be attached to registration.)
Suggested Assignment Agreement
The provisions recommended in this agreement are meant to protect both parties. Individual concerns not covered, they can be added while others can be deleted. This agreement is only meant to be a guideline for constructing your own finalized contract.
Credit Information Sheet
The Assignor will need some information on the Assignee just for his protection. If the Assignee does not make payments, Assignor will be able to turn this information over to a repossession firm to retrieve the vehicle.
Insurance
Insurance regulations differ widely from state to state. The simplest and most widely accepted structure for this arrangement is as follows:
List the owner as primary insured and assignee as additional insured. The loss payee will always be the lien holder. The policy address can be that of the assignor or assignee.
Insurance can remain on the existing owner’s policy by just adding the assignee as an additional insured. The owner may prefer to set up a new policy so that the assignee’s driving record will not affect the rates that they pay for their other vehicles.
If the assignor has a poor driving record, that would make your insurance premiums prohibitive, you do have some options. Some insurance companies will allow you to list the Assignee as Primary Insured and the Assignor as Non-Driving additional insured. They will treat the policy just like a normal lease. In the place of the leasing company, they will insert the name of the Assignor. The Loss Payee remains the bank or lien holder. Let the insurance company know that you have the Power of Attorney for this vehicle.
If this is the direction that is most economical for you, then you may want to find a creative, knowledgeable agent, (this is not always easy.) Many agents may reject your policy without fully understanding the relationship or legality of it. We recommend talking directly to the underwriters if the agent does not seem knowledgeable. If you do set up your policy in this manner, then you may want to contact the Department of Motor Vehicles in order to see if a lease tag can be issued in your name without changing the title.
Registration Process
Each state has different systems. We have found that the most common is as follows: Register Vehicle in Assignor's name in care of Assignee's name and address. Keep Limited Power of Attorney with registration. In most states, Limited Power Of Attorney along with the Assignement Contract is sufficient to register a vehicle. Registration And License Plate are to remain in Assignor's name, (normally leave the same license plate on the vehicle.
TaxesAssignor will receive all property taxes on vehicle and then forward to the assignee.
DEFENITIONS
Assignor: Person who has vehicle for sale or wants to be relieved of monthly payments.
Assignee: person who wishes to assume assignor’s payment responsibilities.
Assignment Agreement: Agreement between assignor and assignee.
Upside Down Vehicle: A vehicle in which the pay off is greater than the book or loan value of the vehicle. (Also referred to as “negative equity”.)
Lien Holder: the lending institution who financed the vehicle for the assignor.
Purchase Agreement: Purchase contract between lien holder and assignor signed at time of purchase of vehicle.
Lessor: a person leasing an item to another person.
Lessee: A person leasing an item from another person.
New Companies: A company that finds a vehicle owner, that must relinquish their vehicle because it is close to repossession, and then finds a third party to assume the vehicle owner's responsibilities of payments, insurance and maintenance.
Nada Book (National Automobile Dealers Association:) A monthly publication found in most libraries, that list average retail selling prices and bank loan values of late model.

SUGGESTED ASSIGNMENT AGREEMENT
This agreement is made and entered into the date indicated below by and between______________________(assignee) and ______________________________________(assignor).   Whereas the assignor holds legal title or interest to the vehicle described below and has same finance with _______________ (lender) having agreed to pay lender $___________________________ (monthly) for another ______________________________ months (note payments) with a residual amount of _______________________ (if a lease.)
Whereas, the assignor is desirous of assigning or selling the vehicle and assignee is desirous of accepting assignment and/or buying the vehicle.
In consideration of the mutual covenants hereinafter made and for other good and valuable consideration the sufficiency and receipt of. Which is hereby acknowledged, the parties agree as follows:
1. Assignor agrees to assign the vehicle to assignee/buyer for the term of the assignors note payments due his lender and hereby authorizes assignee/buyer to drive same, but only for so long as assignee/buyer is current in the assignment payments set out below in paragraph two (2). The vehicle cannot be taken out of the state without written approval from the assignor.
2. Assignee/buyer agrees to pay as assignment payments for such vehicle, the monthly amount of assignor's note payments to Lender, and to pay same by cashier’s check or money order made payable to lender and to mail such payment to assignor at least ten (10) days before the ______________ day of each month beginning on _________ 200__.   Any late payments shall be in default of the agreement.
3. Assignee/buyer agrees to take out and maintain insurance on the vehicle satisfactory to assignors lender and to name assignor as primary insured. Assignee as additional insured and lender as loss payee. Assignee/buyer further agrees and does hereby indemnify and hold assignor harmless from any damage or liability arising out of assignee/buyers use of assigned vehicle.
4. Assignee/buyer understands and agrees that should he/she fail to timely pay any of the assignment payments called for above or allow the aforesaid insurance to lapse or should assignors lender declare a default under its note or loan agreement or deem such loan repayment or the collateral to be insecure, this assignment/Purchase agreement shall terminate at once, assignee/buyer shall no longer be deemed to be an authorized driver of the vehicle and assignee/buyer agrees to return the vehicle to the assignor or his/her agent immediately. Failure to do so shall result in the immediate repossession of the vehicle by assignor, its agent or the lender or its agent.
5. Assignee/buyer shall have the option to purchase the vehicle upon
(a) its full and timely compliance with this agreement and
(b) the payment of all note payments to lender.
Thereupon, assignor will deliver to assignee/buyer the vehicle’s certificate of title.   Default under this assignment by assignee/buyer or other authorized termination of this agreement shall forfeit any option to purchase the vehicle that assignee/buyer may otherwise have had. Upon full compliance and satisfaction of the lien, assignor will have 30 days to deliver title to assignee.
6. Normally, legal title to the vehicle shall at all times prior to assignee/buyers proper exercise of his/her purchase option described above remain in assignor’s name and possession if applicable.
7. During the term of this agreement, assignee/buyer agrees to maintain the vehicle in good repair and full operation condition. Any failure to do so shall be grounds for termination of this assignment/purchase agreement and assignee/buyer shall be personally liable to owner for the cost and expense of any repair deferred maintenance other than for normal use and wear and tear.
8. Upon a 48 hour notice to the assignee/buyer, assignor has the right to inspect the vehicle at a location of his/her choice, no more than once a month.
9. Any additional or special provisions applying only to this agreement are written as follows:
10. This constitutes entire contract. This assignment agreement including any addendum’s or exhibits hereto which are by this reference made a part hereof, contains the entire agreement relating to the assignment of the vehicle and shall bind and insure to the benefit of all respective heirs, personal representative, successors and assigns of the parties hereto except as herein above expressly limited.
Any oral representation or modifications of this assignment agreement shall be of no force and effect, excepting modification in signed by the party to be charged. No delay or forbearance of assignor in the exercise of any remedy or right will constitute a waiver thereof and the failure to exercise or a partial exercise of a remedy or right shall not preclude a subsequent or the further exercise of the same or any other right or remedy by assignor. Assignor shall have no liability for any delay in delivery of the vehicle for any reason beyond the control of assignor.
In witness whereof, the parties have executed this agreement as of the--______day of______200__, at
___________________________         ________________________
Assignee/Buyer Signature            Assignor/Seller Signature
Print Name and Address              Print Name and Address
_____________________________ ______________________________
_____________________________ ______________________________
_____________________________ ______________________________

Date _________________________ Date__________________________

TELEPHONE INFORMATION SHEET (Questions you should ask when calling about a vehicle.)
Date:
Owner s Name:
Make of Car:
Year:
Color:
Mileage:
Condition:
5 Speed Transmission: Automatic Transmission:
Monthly Payments:
Number of Payments Remaining:
Full Pay Off Amount:
Are Payments Current:
Address Where Car Is Located:
Owner s Phone Number:
Comments:
Note: When making telephone calls, use a note pad to write down the above questions, record the seller's answers accordingly.
ASSIGNEE'S RESPONSIBILITY: (Assignee - person who wishes to assume assignor's responsibilities of vehicle payments and insurance.)
1. Make payments to assignor, by money order, cash or bank draft made out to lien holder/lender and forward to assignor 10 days before due date. (NOTE: Put account number on money order or bank draft. Assignor will promptly forward this in to lien holder in order to maintain his credit status.)
2. Provide copy of insurance, naming assignor as primary insured, assignee as additional insured and lien holder as loss, payee.
3. Notify assignor of any change of address.
4. Provide assignor with credit application (included in this information package) and at least eight (8} personal references.
5. Provide assignor with original assignment agreement.
6. Receive all manuals, warranties and other information pertaining to the vehicle. Keep warranty in the name of assignor.
7. It will be the assignee’s responsibility to pay for and keep current the collision and liability insurance, property tax, inspections, permits, and other taxes or fees pertaining to the vehicle.
8. Maintain the vehicle in excellent working condition as described in the owner's manual.

POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS. That the undersigned of the County of State of being the Registered Owner of the above, described motor vehicle. Does hereby make, constitute and appoint of ________________County. State of true and lawful attorney in fact to sign in the name, place and stead of the undersigned, any Certificate of Ownership issued by the Department of Motor Vehicles of the State. Covering the motor vehicle described above in whatever manner necessary to transfer any registration of said motor vehicle. Granting and giving unto said attorney in fact full authority and power to do and perform any and all other acts necessary or incident to the execution of the powers herein expressly granted with power to do and perform any acts authorized hereby. As fully to all intents and purposes as the grantor might, or could do if personally present, with full power of substitution.
IN TESTIMONY WHEREOF. the undersigned has___________________________hereunto set __________________
hand___________ this ______ day of _____________,200___
(PLACE NOTARY SEAL HERE)
X _______________________________ Subscribed and sworn to before me
X _______________________________    this ________day of _______________200___
Witness:
Address:
Notary Public in and for the County of State of
UNIFORM COMMERCIAL CODE: 9 311   Alienability of Debtor's Rights: Judicial Process The debtor's rights in collateral may be voluntarily or involuntarily transferred (by way of sale creation of a security interest. Attachment, levy, garnishment or other Judicial process) notwithstanding a provision in the security agreement prohibiting any transfer or making the transfer constitute a default.