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Can I sell a car loan to another person?

I don't want my car anymore, but my buddy’s taken a shine to it. For the sake of convenience, can I sell him the car loan? Or do I have to go about this in another method?

avatar
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
That’s an interesting idea to sell a
car loan
, but unfortunately, you cannot legally sell a car loan to another person. Fortunately, you still have another option.
If your buddy wants to buy the car, you can
sell the vehicle
to him, even if he needs a loan to do so. Your friend would have to qualify for the car loan, meaning he would need a good credit score and steady income. However, if he’s approved, the two of you can agree on a sale price.
Once you agree on the price, you can go to his lender, which will give you a check for the sale price. Then you can take the check to your lender, pay off the remainder of your loan, and pocket whatever money is leftover. If you’re going to buy a new car, this extra money is ideal for a down payment.
When you purchase a car, you should also remember to budget for car insurance, even if you make a down payment. Use the
Jerry
app to compare personalized rates and get the best full coverage option for your new ride.
Best of luck with the sale!
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