How to Transfer My Car Payment


Obtain the true market value of the vehicle by factoring make and model in comparison to directly comparable makes and models, resale value, mileage, depreciation, wear and tear. Vehicles do not normally appreciate regardless of aftermarket add-ons and might actually be worth less.


Make an inquiry to the lending institution that services the current loan as to the possibility of transferring the loan. Most lenders will not transfer loans, regardless of circumstances or individual qualifications, while lenders that might administer a loan transfer will require qualifying the individual taking over the loan. In the former instance, the individual will have to obtain financing independently. If the individual must seek financing separately, he will need to request a payoff statement from the current lender to ensure the loan will be granted for the amount equal to the payoff.


Draft a Bill of Sale and have the new owner's signature notarized. In the Bill of Sale, list all details relevant to the transaction, including the vehicle's make and model, year, and VIN number. Set a date for title transfer and obtaining insurance in the new owner's name.

Tips and Warnings

  • Cancel the insurance after the transfer of the loan or a new loan has been finalized and the title has likewise been transferred
  • Owners that are upside-down in their financing (owing more on the vehicle than its true market value) will not be able to transfer the loan or be able to sell the vehicle to an individual regardless of creditworthiness.
  • In the event you are purchasing a car for another person or have decided to sell a vehicle that carries a lien to someone else, you might consider the possibility of transferring the existing loan to another individual.

    Loan terms and provisions are not clear to many consumers and, therefore, car owners are unsure about the feasibility of transferring the loan prior to its full amortization date. "Transferring" an auto loan is not typically acceptable according to standard loan restrictions. However, there are methods by which individuals can transfer ownership under a new loan.