Alright so I owe 17,000 on my current loan right now, but my friend wants to buy my car, I also want a new car. Is there a way I can transfer the loan over to him so I can pull out a new loan for a different car or am I stuck with this loan until my car is paid off?
Answers (2)
It's not so easy. You need to take care to ensure everything is fully documented and agreed with your leasing company. Many leases, and some loans, allow a new person to assume the remaining term of the lease, taking over the vehicle and the payments on it. Below some following points for finding out if you can transfer car title loan:
* Clarify whether your have leased the car or have an auto loan → While it's often not possible to directly transfer one loan between two people, but there are alternative ways to bring about the same result. However, if you are leasing a car it is generally easier to transfer the lease to another person than it is to transfer a full auto loan.
* Make sure you understand your contractual situation → If you are uncertain about your position, contact the loan company and consider getting some legal advice from an attorney. Apparently, there may be options in your contract to sell the car and pay off what you owe, or to trade in the car for another model and adjust the loan accordingly.
* Get permission from your loan company to sell it → Taking responsibility for the sale yourself will make it more likely that you will get a good price than if you left it to the creditor to sell. So, if you have an agreement with a friend or family member this can help the process move more quickly.
* Opt a simplest way to effectively transfer your car loan → If you are operating with one loan company, the new owner must take out a loan which he uses to buy the car from you. By doing this you are basically transferring the loan and the outstanding payments to another person. But make sure that you also transfer the title of the car to the new buyer, in accordance with the laws in your state. Notify your insurance company that the car is no longer in your possession.
Note: While rendering someone your car loan, outline the terms of the agreement in writing and make sure you specify when the title changes names legally. Take the contract to the bank where both parties sign in the presence of a notary.