If you are currently financing a car and for whatever reason are looking to have someone else take over the financing, you might be wondering what options you have. Though it is not generally possible to transfer your loan to another person, you still have options.
At Autorama, we are dedicated to helping our customers find cars they love with financing options that truly work for them. We understand that life happens and sometimes you’ll need to find a way to no longer have a loan. In this article, we outline what you can do when you are looking to find out, can you transfer a car finance to someone else?
Can I Transfer My Car Loan to Someone Else?
If your financial situation has changed you may be wondering if you can transfer your loan to someone else without also transferring ownership. Unfortunately, that isn’t how auto loans work. In order to have someone else take over your car loan, they will need to obtain their own financing and purchase the vehicle for themselves. Loans are not transferable; however, you can sell your car to someone who has obtained their own financing.
Can Someone Else Finance a Car for Me?
If you had purchased a car with the intention of having another person be the primary driver of it you may be wondering if it is possible to have the loan transferred to them. Though it is not possible to do this, there is no issue with you owning a car that someone else drives so long as this is disclosed to your insurance provider. In our previous article, Can a Parent Finance a Car for Their Child, we outline what you should know about buying cars for other people.
How Can I Get Out of Financing My Car?
If your financial circumstances have changed and you are looking to transfer your loan to someone else, you have options. Though directly transferring your loan is not possible, it is possible to eliminate your loan, especially if you no longer wish to have the car.
If your intent is to keep your car, the most straightforward way to stop owing on your vehicle is to pay it off in full. If this is not an option for you, you may wish to consider refinancing for a more desirable interest rate or term of the loan.
If you are looking to sell your car and transfer the loan there is no need to worry about transferring the loan. You may wish to sell your car back to the dealership or sell it privately to a buyer who has obtained their own financing. If choosing this option, keep in mind that you will be responsible for any negative equity that you may own.
Need more help making sense of financing? The experts at Autorama can help. Contact us today or see our car financing info centre to learn more about how financing works.