Can I transfer a car loan to someone else?
Can I transfer my car loan to someone else? I took out a car loan a few months ago. I have been making all my payments on time. But I’m worried something could happen and I wouldn’t be able to pay. Is it possible for someone else to cover for me?
Managing loan payments by yourself can be challenging when you need to juggle other monthly expenses, so having another person to help cover for you would be helpful. Your family or friends can give you money for payments. However, if they want to drive and own the vehicle, it’s a bit more complicated.
By law, the person with the ownership of the vehicle is responsible for making payments to pay off the loan. If your family member or friend would like to drive the vehicle and eventually take ownership of the car, then you can transfer the car loan by selling your car and transferring the title.
That said, you’ll first have to check with your lender to confirm whether they allow loan transfers. If they do, the person would need to apply and qualify for the loan. If they don’t, they could try to refinance the existing car loan in their name.
If you are worried about your monthly loan payments getting unmanageable one day, consider refinancing your loan yourself to lower your monthly payments. On average, car owners pay $85 less every month by refinancing their auto loans. Jerry makes refinancing your car easy by comparing quotes from multiple lenders to find a rate that works best for you.
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