Question received: I borrowed money from my parents to buy a car. I pay 400.00/mth for payments. The car is not in my name, the $400 includes my contribution for insurance. Can i put it down as a payment. I don’t want to screw my parents. It’s a used vehical, not new or leased, and was purchased for 5200.00.
What is the best thing to do?
Answer: If you own the vehicle, and there are no liens registered against it, you can use it as a down payment on another vehicle. However, if you then declare bankruptcy, it could impact on your parents, depending on how much is owed on the new vehicle. I suggest you contact on Ontario bankruptcy trustee to advise you more fully.