How do you assume a car loan?

My daughter is in over her head with her car loan. She lost her job last year and can't keep up with the payments. How can I assume her car loan to make things a little easier on her?

Answer
Many people are having a hard time keeping up with their finances right now, so it’s great that you’re willing to help her out! Yes, there is a way for you to assume the car loan under your name.
The first step is to have your daughter contact her loan company. While most loans companies allow for loans to be assumed, some don’t. Once she confirms that you can assume the loan, it is just a matter of you filling out paperwork and waiting for the bank’s approval.
If her type of loan doesn’t allow for this, try and get a personal loan under your name. Personal loans can have higher interest rates than car loans, but if approved, you can pay off the balance of your daughter’s car loan. Then you both can work on paying back the personal loan.
If you both live in the same household, you can also help her save money by adding your daughter and her car to your car insurance policy. This is where Jerry can help! The Jerry app shops prices with over 50 different insurance companies and delivers the lowest rates straight to your phone in seconds—for free!
Between finding a lower insurance rate and benefitting from a multi-car discount, you’ll pay off that loan in no time!
Shannon Martin
Answered on Nov 01, 2021
Shannon is an expert in personal lines liability insurance with 13 + years of insurance industry experience. She also served as a special insurance liaison to AARP members for 6 of those years. She is a graduate of UL Lafayette and currently resides in NY with her family. Shannon is also an amateur juggler, ukulele player, and is a time travel paradox theory enthusiast.
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