How can I transfer my car loan?
Is there an easy way to transfer my car loan to my brother? He loves my car and would like to take over the loan. I'm looking for a new car anyway, so I don't mind—I just don't know how to give him the loan.
It’s great that your brother loves your car so much! Because you can’t actually transfer car loans, your best option is to sell him the car.
In essence, that means your brother would be giving you the money to pay off your car loan. But if your loan is too big for him to cover, he may need to pull out a separate loan to pay it off.
Here’s an easy-to-understand breakdown of the process:
- Brother applies for and gets approved for a loan.
- He buys the car from you.
- You pay off the loan with the money he gave you and provide him with a signed title and loan release letter.
- He signs the title and registers the car under his name.
- Your brother independently pays off the loan he took out to buy your car.
While this isn’t technically transferring a loan, the end result is the same. Remember, you and your brother will both need to get insurance policies when you get your new cars!
For help saving money and making the insurance-shopping process easy, try Jerry. A licensed broker, Jerry helps you find and compare quotes from over 50 top providers in minutes. Jerry will even send you new quotes when your policy comes up for renewal—so you always know you’re getting the best rate.
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