Can I assume a car loan for my buddy?

My friend can't pay his car loan. I want to help her, but I don't just want to make her car payments. I've always loved her car, so I'm wondering if I can just take over the loan and get possession of the car. Is this possible?

Answer
You’re a great friend by helping your buddy out!
In most cases, car loan assumption is rare. If you transfer the registration and title to a new person, the lender would need to be notified. The lender will then check the new owner’s credit and start a new loan process.
That said, some banks may work with you and your friend to figure something out—but you’ll still have to go through the steps of applying for a loan.
Regardless of who owns the car, you’ll need full coverage car insurance. Jerry will help you find the best rates on the coverage you need by presenting you with quotes from up to 50 providers. The average Jerry user saves $879 per year on car insurance.
Eric Schad
Answered on Oct 21, 2021
Eric Schad has been a freelance writer for nearly a decade, as well as an SEO specialist and editor for the past five years. Before getting behind the keyboard, he worked in the finance and music industries (the perfect combo). With a wide array of professional and personal experiences, he’s developed a knack for tone and branding across many different verticals. Away from the computer, Schad is a blues guitar shredder, crazed sports fan, and always down for a spontaneous trip anywhere around the globe.
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