Can I refinance my car loan into my friend's name?

I have a car, but my interest rate is way too high. Can I refinance my loan into someone else's name?

Answer
You can’t refinance a car loan into your friend’s name unless you’re selling the car. Essentially, your friend is taking ownership of the vehicle and assuming the loan. They will need to find a lender to work with and get approved for a new loan themselves.
If you want to keep the vehicle, you may be able to refinance the car with your friend as a cosigner.
If you have a high interest rate, chances are your credit score isn’t all that great. As such, refinancing in your name alone probably isn’t a possibility. However, if your friend has a strong credit score and steady income, you could add them as a cosigner and get a better interest rate.
To save some extra money on top of the reduced interest rate, take a look at your car insurance policy. Using the Jerry app, you may be able to find a better rate by comparing quotes from up to 50 top providers. The best part? Most Jerry users save $879 per year on average.
Eric Schad
Answered on Oct 25, 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.
thumb-up

Did this answer help you?

Ask us a question by email and we will respond within a few days.
thumb-up

Have a different question?

You can meet us at our office and discuss the details of your question.
Let Jerry’s experts help you find savings on your car insurance!
No long forms or spam · Get quotes from 40+ carriers
Find insurance savings (100% Free)
rating primary
4.7/5 Rating on App Store