Let’s say you’re scrolling through Carplus planning for the future or have already bought your car and your financial situation changed. There are plenty of situations where you may need to hand your car finance agreement over to another person. Perhaps you cannot afford car payments anymore or just applied for another kind of credit.
Each car loan is specific to your individual circumstance, meaning you cannot transfer car finance agreements easily to another person, because no one else can have exactly the same circumstances as you. However, that doesn’t mean you’re stuck with the existing car finance agreement. There isn’t a one size fits all strategy to use for a car, but there are solutions for all the different circumstances you may face.
The best way to transfer a title is to settle any existing vehicle debt before creating a new car agreement in the new person’s name. In fact, the person you have chosen to take over may help you with the process. Together you may find a way to pay off the remaining settlement figure, making the car transfer process easier, or avoid needing a finance transfer altogether.
Although the general guidelines say that a car finance agreement cannot be transferred to another person, a car finance company will have specific options to help you through the process. Talk to them, their experience has prepared them to help you through any situation. Remember that it’s a good idea to keep them updated with any changes you like to make since your car finance is a legally binding agreement.
Lenders will also be keen to help once they know they will lose your monthly car payments should you settle your car debt. To keep themselves afloat, they will be more willing to finance the person you want to transfer the new agreement to.
If you’re trying to transfer your car finance agreement because you took it on their behalf, you could be accused of “fronting” and/or fraud. Even if they were unable to acquire the car agreement because of credit issues and you were trying to help them out, it’s still an illegal process. Avoid getting into the situation in the first place.
Always be upfront when getting into a car finance agreement. Your lender can only assist you once they have all the information they need. There are plenty of lenders who can help those with a poor credit history or accept parents taking out car finance for their children. Some lenders even allow an additional person who can financially vouch for you and your car.