How to Sell My Car By Taking Over the Payments

It's sometimes impossible to meet the car payment amount to which you agree in an auto loan contract. Alternately, you may need a vehicle that suits your needs better. Selling your car by having someone take over your loan payments -- known as loan assumption -- solves both these problems. To do this, you'll have to get permission from your auto lender and rework the loan paperwork so that the new buyer is legally responsible for payments.

Instructions

1

Look at your car loan documentation for any clauses regarding loan assumption. Some contracts forbid assumption outright. Call your lender and ask for written permission to proceed with loan assumption if there is nothing about loan assumption in your documentation.

2

Find someone who is willing to buy your car. Have this person provide your lender with all the documents necessary for an auto loan application, such as proof of income statements, ID and a credit report. Let the lender run the documents through the application process to determine if the buyer can handle your payments.

3

Permit the buyer to pull in a mechanic to inspect the car if he desires. A buyer probably will not complete the loan assumption if he can't get an idea of the true condition of the vehicle and the cost of any repairs to be made -- that is, he needs to know what he's buying.

4

Make an appointment with your lender and the buyer to negotiate the loan assumption. The lender probably will rewrite the loan, naming the buyer as the owner of the vehicle, but you'll likely still need to sign some release forms to terminate your rights to the car.