Can you transfer car finance to someone else?

No, you cannot transfer your car finance to someone else. Since the agreement is based on your personal financial circumstances, it's not transferable. To proceed, you would need to close the existing finance agreement, and the other party would have to apply for finance independently. While this process might seem complex, there are ways to explore new finance options to suit different circumstances. If you're interested in applying for car finance, see the guide on how to apply.

Why can't you transfer car finance to another person?

You can't transfer car finance to someone else because it’s a legal agreement between you and the lender. The terms are based on your credit history and financial situation, so another person can't simply take over. Their financial circumstances will differ, creating a risk for the lender if they can’t keep up with the payments. Missing payments could damage the new borrower’s credit score, making future credit harder to obtain. For these reasons, car finance agreements aren’t transferable.

Ending your car finance agreement early

If you can no longer manage your car finance payments, transferring the agreement to someone else isn’t an option. However, you can explore ways to end the agreement earlier than planned.

Your ability to end the finance early depends on the type of agreement and its terms. It's essential to review your contract and contact your lender if you're unsure of your options.

1. Pay the settlement figure – Contact your lender to find out the exact amount needed to settle your agreement early.
2. Voluntary termination – If you’ve paid 50% of the total amount (including fees, interest, and the balloon payment in a PCP), you can return the car and end the agreement.
3. Refinance your car – Apply for a new finance deal, usually with a different lender, to lower your monthly payments or use any positive equity as a deposit for a new deal.

If you pay the settlement figure on a hire purchase agreement, the car becomes yours to sell or gift. Alternatively, if you refinance, you may add someone else to the new agreement by applying for joint car finance.

Call us for expert car finance advice

When arranging car finance, it’s important to feel confident in your decisions. Sometimes, getting advice from a specialist can make all the difference.

We’re here to help you understand your finance options. Whether you’re unsure about the best agreement or have specific questions, our experts can guide you through everything—from instalment plans to managing payments.