How To Transfer A Car Loan To A Family Member
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Can You Transfer A Car Loan To Someone Else?
The task of transferring a car loan to another person’s account is complex. That is the main reason why big banks are against such a proposal. But private lenders may agree to this kind of proposal in certain situations.
In a person-to-person auto loan transfer process,
Lenders will find it difficult to decide on car ownership.
There will also be effects on liability and car insurance.
ValueAutoLoan can assist you with valuable advice on auto loan transfer. Let us help you to know if you can get your car finance loan transferred. To learn more, contact us online today!
How To Transfer A Car Loan To A Family Member?
A car loan transfer essentially means the sale of the vehicle that is under finance. The car purchaser will be the new applicant who is going to be the owner of the vehicle. The car title will change and so, the existing loan account of the seller has to be closed down.
The current owner of the car has to repay all the loan dues. It includes missed payments and processing fees. Only after the auto loan stands closed, the new applicant can apply for a loan with the existing lender. A stepwise process has to be followed for getting a new loan.
What Are The Steps To Transfer A Car Loan?
To begin with the procedure of transferring a car loan, you can follow these steps.
Contact the lender – You can explain your situation to the lender representative. See if you can get the auto loan transferred. If the lender agrees to the proposal then you can go to the next step.
New loan request – Ask the lender about minimum credit requirements, restrictions and other criteria and fees required for loan transfer.
Prepare paperwork – To complete the auto loan transfer, the new applicant needs to submit the required paperwork along with the application. The lender may run a credit check before providing loan approval.
Transfer of car title – After receiving approval for car loan transfer, the new borrower must get the title of the car transferred. Both first and new car owners have to approach the state DMV for the transfer of car title. Thereafter, car ownership will change in DMV records. A copy of the same must be submitted to the lender.
Insurance and registration – The new owner must buy insurance to drive a car legally. He must also register the car with the state DMV again.
If the lender does not agree to a car loan transfer then, you can:
Refinance the auto loan with a co-signer
Sell your vehicle to repay the loan dues
Consider trade-in the car to get an altogether new car