Can I take over my friend's car loan?

My friend can't pay for her car loan anymore due to some extenuating circumstances. Can I take over her loan? (I love her car, too.)

Answer
That’s a shame to hear about your friend’s financial hardship, but you can help her out by assuming the car loan. Loan assumption is a full takeover: you will get ownership of the car and the loan at once.
If the lender allows you to assume the car loan, the only thing you have to do is qualify. You’ll need good credit and enough income to make regular payments and keep up with your usual expenses.
When you’re approved, your friend can set up a meeting and the lender should take care of all the paperwork, including the title transfer and registration.
If the lender doesn’t allow for assumption of car loans, you could take over your friend’s loan by purchasing the car from her. You would have to get approved for a loan to begin paying off the car’s balance. She can use the money you gave her for the car to pay off any extra fees.
During either process, you will need to show proof of insurance, so now’s a great time to double-check your rates. Use Jerry to compare dozens of competitive quotes (for free!) and access hundreds of dollars of possible car insurance savings.
Eric Schad
Answered on Oct 28, 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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