Can I swap a car loan?

I can no longer afford to pay for my car loan, but I was wondering if it was possible to swap the loan to someone else. Is this something I can do?

Answer
Yes, nearly all lenders allow a car loan swap if you can find the right borrower to take your place. This other borrower must :
  • Have enough income to support the loan
  • Have a good credit score
  • Have a debt-to-income ratio no higher than 43%
If the other party qualifies for the loan, they should also know that the terms of the loan won’t change. Payment dates and contract stipulations will stay the same.
Additionally, you have to transfer the car’s title over to the new borrower. Some lenders technically consider this selling the car, as you will no longer have any legal rights to the vehicle.
You can also save money by taking a look at your car insurance policy. When you download the Jerry app for free, you can compare quotes from over 50 insurance carriers so that you find the best possible rates. The average Jerry user saves $879 per year on car insurance.
Eric Schad
Answered on Nov 17, 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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