While you can't get anyone to take over your car payments, you can have them take out a loan for the full purchase price of the vehicle and give you the money for the car. This allows you to pay off your lender while the buyer remains responsible for repaying their loan.Know More
You may think you can simply accept future loan payments from the individual seeking to take over your car payments or have them make out a check on your behalf, but this is a dangerous strategy. If the individual misses a loan payment, it's your credit score that takes a hit instead of theirs. Having the person refinance the loan is a more sensible and safer option.
Cars are easier to refinance if the individual has good credit, proof of income, and a physical address. Another advantage to having good credit is the interest rates are usually lower. The individual also needs to be able to insure the vehicle according to the state's minimum requirements. The insurance company may be able to shift the policy and payments to the new owner or devise another way to transfer the policy. Ask your lender if it's okay for you to have someone take over your loan payments. You should also make sure that person's name takes the place of yours on any loan documents for the car to reduce your liability.Learn more in Credit & Lending
A consumer can sell a car if they still owe money on it, but the balance must be paid in full to release any liens against the title. That's why car owners always want to sell a car for at least as much as the balance of the loan.Full Answer >
For an individual to get a car loan with no credit, he should save enough money for a sizable down payment, document his work history and compile a record of the timely payment of his recurring bills. He can consider asking a family member or friend to co-sign on the loan.Full Answer >
Having a vehicle repossessed does not remove the borrower's obligation for the loan. Once the lender repossesses the vehicle and sells it at auction, the finance company also has the right to sue the borrower for the remaining balance on the loan. This balance is called the deficiency balance, according to Nolo.com.Full Answer >
A consumer can get out of a car loan by selling the car, refinancing, negotiating a new contract or turning the car over to the lender, according to Bankrate. A consumer who is willing to give up a car can consider allowing a friend or family member to take it and assume the loan, which requires approval from the lender.Full Answer >