How do you transfer a car loan?

I’m moving to New York City soon and will no longer need my car. My aunt and uncle offered to buy it off me for their son who is about to turn 16 years old. The car has a loan left on it still, which they have agreed to take over. But how do you transfer a car loan?

Transferring a car loan is a common practice when someone cannot make payments, wants to refinance, is selling their vehicle, or is trading in their car for another one.
To successfully transfer the loan, you must do the following:
  • Examine your contract to make sure the loan can be transferred and there are no hidden fees.
  • Have the new loan holder apply for the loan and get approved either through the same financial institution or a new one.
  • Visit the DMV to update the vehicle’s title, fill out any additional paperwork, and update the registration for the new owner.
  • Make sure the new owner has car insurance and inform your car insurance company of the change.
Once these steps are complete, you should be all set! If you have additional questions you should contact the DMV or the financial institution that issued the loan.
Finally, you should recommend that the new owner download Jerry when looking to insure the vehicle. Jerry is an insurance comparison app that shops for low prices with over 50 different insurance companies for free. You will get quotes in seconds, can make changes at any time, and if you ever have any questions, agents are just a text away!
Jack Walsh
Answered on Oct 25, 2021

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