Can you switch a car loan to someone else?

Asked by: Ewell Larson  |  Last update: December 19, 2025
Score: 4.5/5 (37 votes)

Can You Transfer Car Loan to Another Person? Most lenders will not simply transfer a car loan from one borrower to another with the exact same payments, terms, and rates remaining on the original loan. Typically, when the registration and title go to a new owner, the lender has to be advised.

Can an auto loan be transferred to another person?

If your original lender allows you to transfer the loan to another person, that person will need to provide them with information. The new loan holder will have to fill out a new loan application and provide a copy of their credit score. They'll also need a copy of their driver's license and proof of insurance.

Can a loan be transferred to another person?

Most personal loans cannot be transferred to someone else. There are rare exceptions to this rule, such as mortgages and car loans, but even then, it is easier to qualify for a new mortgage or car loan to pay off the existing loan. If considering a personal loan, make sure you can repay the loan in full.

Can I refinance my car loan into someone else's name?

So, the short answer is yes, you can refinance a car under another name, but there are a few things to consider first. Let's dive into the requirements. The new borrower will need to qualify for a loan on their own, meaning they'll need a good credit score and a reliable income.

Can a financed car be registered to someone else?

Yes! You do have the option to title and/or register your vehicle in someone else's name. In order to do this, the new owner must sign a Security Agreement form, acknowledging that the credit union has a lien against their property.

Can You Transfer a Car Loan to Another Person: Explained

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Can I sell my financed car to someone else?

If you have a loan on your car, you will most likely need to pay it off in full before transferring the title to a new owner.

Can a car be registered to someone who doesn't own it?

The car can only be registered by the owner. If you sign the title over to someone else, they will own the car and can register the car in their name. At that point, they will need to start insurance in their own name and can add you as a driver.

Can I add someone to my car loan without refinancing?

Unfortunately, once you sign an auto loan agreement, you can't add someone to that loan without refinancing. If you think you might want someone else to be on your loan, plan carefully, and put them on the contract right away. Otherwise, you'll have to refinance to add their name to your car loan.

Can you transfer a car title while still making payments?

The lender, or lienholder, will keep the car's title until it's paid off. In that case, you'd contact the lender about your options. You might need to pay off the loan before selling the car, although the lender might allow a buyer to take over your loan balance.

How do I get my name off a car loan with someone else?

To get your name off of someone's car loan you have the option to request a co-signer release. Selling or trading in the vehicle is another way to remove a co-signer from a car loan. If these aren't options, you can ask them to refinance the loan without you.

How do I change my loan to another person?

Transferring a personal loan to another person is not a direct process. However, you can opt for a balance transfer to a new lender or request a change in borrower, but approval depends on both the lender's policies and the new borrower's eligibility.

How do I get out of a car loan?

How to get out of a car loan
  1. Renegotiate your loan terms. ...
  2. Refinance your car loan. ...
  3. Pay off your auto loan early. ...
  4. Sell your car. ...
  5. Consider voluntary repossession. ...
  6. Default on your car loan (not recommended) ...
  7. Consider filing for bankruptcy (not recommended)

Can you take out a loan and give it to someone else?

Regardless of how close your relationship is, if you do take out a loan for someone else, the only person legally responsible for repaying that money is you. As far as your agreement with your lender goes, you're taking the money out in your name for you, so you – and only you – are legally responsible for repaying it.

Can I transfer a loan to someone else?

So, personal loans can generally not be transferred from one person to another. If one person wants to assume the debt of another, they'll need to obtain a personal loan on their own and use the proceeds to pay off the original debt.

How to get rid of a car loan without ruining your credit?

But you'll need to tread carefully if you want to minimize the hits to your wallet and your credit rating.
  1. Renegotiate the loan. ...
  2. Sell the vehicle. ...
  3. Voluntary repossession. ...
  4. Refinance your loan. ...
  5. Pay off the car loan.

Can I loan my car to someone else?

Yes, you can borrow or lend a vehicle as long as the driver has the car owner's permission. However, there are exceptions, so you need an expert lawyer to help you review your insurance policy and guide you with any claims or compensation you might have.

Can I transfer my financed car to someone else?

Most loan contracts typically don't allow for transfers, and mainstream lenders generally refuse such a request.

Does selling a financed car hurt your credit?

Does selling a financed car hurt your credit? Selling a financed car to a private buyer or dealership likely won't hurt your credit. However, if you have negative equity, you might need to refinance your auto loan or take out a personal loan to cover the difference between your car's value and what's left on your loan.

Can a car loan be in a different name than the title?

No, the bank want you both on the loan and the registration/title. It makes sense, they're lending money to you, but you're not the owner, if they are gonna shell out the loan, they can stipulate who has to be on the loan.

Can I add someone to a title without refinancing?

Yes, you can add someone to your property title without including them on the refinanced mortgage loan.

How can I remove someone from my car loan without refinancing?

Here are the four main ways to remove a cosigner:
  1. Release the Cosigner. Some banks and lending companies offer cosigner releases. ...
  2. Pay Off the Loan. If you have the money to pay off your loan in full, you might consider this option to remove your cosigner. ...
  3. Refinance Your Car. ...
  4. Sell the Car.

Can you refinance a car loan that's not in your name?

While you have options for refinancing or transferring a vehicle's ownership, you can't directly refinance a car into a different name. There's an exception in cases when a person is just a cosigner and, therefore, not listed as an owner of the vehicle.

Can someone put a car in your name without you knowing?

Yes, it's possible for someone to steal your identity and buy a car in your name.

Can I be on a car title but not the loan?

If the car has a loan, the DMV will not allow you to add someone until the loan is paid off. You can either will them the car or do this once it is paid off.

Does car insurance have to be in the same name as the title?

Does your car insurance and registration have to be under the same name? Insuring and registering your car under different names is allowed in most states. However, in those states that allow it, insurers still might not underwrite a policy to a name different than that of the registered vehicle owner.