"Can someone else take over the payments on a car loan? "
I'm fine with continuing to pay off my car loan at the moment. But for future reference, in case I run into any trouble, I'm asking if someone else can take up the payments.
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Answered on Apr 05, 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.
“This is a fairly open-ended question. When you say “take over the payments,” what does that mean? If you’re talking about using someone else’s money (such as your parents’) to pay the car loan with your name on it, that’s perfectly fine. Lenders typically don’t care who’s making the payments, as long as they’re on time and in full.
If you mean transferring the loan to someone else, this is also possible. Maybe you want to free up some debt to lower your debt-to-income ratio to make another purchase.
In this case, the other person will have to apply for the car loan. Then the lender will make a decision on whether or not to transfer the loan. If the other person has good credit, if you and the lender have a strong business relationship, and if you’re in good standing, they probably won’t have any issues with transferring the loan. “
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