Transferring an outstanding loan to another individual is not something most lenders are willing to do. There are, however, ways to pass on a loan to another person and no longer be legally responsible for payments.
The Facts
Any individual who plans to take over a loan must have an exemplary credit score for the lender to consider the transfer. It is not in the lender's best interests to hand over a loan to someone who may not make the payments.
Purchase
If your bank will not approve a loan transfer, an individual can take over your loan by obtaining financing in his own name for the outstanding amount on the loan.
Considerations
There is no guarantee that an individual purchasing your vehicle to take over your loan will qualify for the same interest rate that you currently have.
Options
You can allow another person to take over payments and leave the car in your own name, but you are responsible for the payments---whether the car is in your possession or not.
Warning
If you currently owe more on your car than it is worth, no bank will approve financing for another individual to buy the car at that price. A car can be financed at its fair market value and you will need to make up the difference to your lender.
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