How To Transfer A Car Loan To Another Person

1
How To Transfer A Car Loan To Another Person
2
There are two primary ways to transfer a car loan
to another individual modify with your existing
lender or seek a new lender. Modifying with your
existing lender will present the least penalties
to you, but it may not be the best deal for the
new borrower. Seeking a new lender will end up
costing you more, but the new borrower will
likely see more benefits. Depending on your
priorities, you will have both options to choose
from.
3
Modifying Directly

• You can contact your lender directly to inform
  them you will be selling the car and that you
  would like the loan to go with the car. This is
  actually what happens when you trade in a car to
  a dealership before repaying the loan. The lender
  will be open to the possibility, but you will
  have to prove the new borrower is credit worthy.
  In fact, the new borrower should have equal or
  better credit than you in order for the transfer
  to go smoothly. The entire loan will be
  transferred, meaning it will appear as though you
  were never a borrower on the car at all. The new
  borrower will receive the good standing of your
  loan, but he or she will be on the hook for the
  entire balance.

4
(No Transcript)
5
Seeking a New Lender

• A new lender will offer to pay off the remaining
  sum on your loan with a loan issued to the new
  borrower. This would count as prepayment to the
  existing lender, which can result in credit score
  problems for you and financial penalties. The new
  borrower, however, will likely benefit because
  the sum remaining is smaller than the initial
  principal. This smaller car loan would typically
  come with lower monthly payments, lower interest
  rates and other benefits to the new borrower.

6
Changing a Car Title

• When you elect to transfer a car loan, ensure you
  transfer all of the car's documents as well. You
  can change the title holder on a car at your
  local DMV. There should be instructions on the
  back of the title for how to change the title to
  another name. Some titles will allow you to
  simply write in the new owner. Others will
  request you fill out a change in title with the
  DMV officially. This varies by state. If you do
  opt to go with a new lender for the car loan, you
  will also need to change the lien holder on file.
  The lender will typically do this part
  themselves.

7
Car Loans With Attractive Interest Rates
8
Meeting Insurance Requirements

• You will need to make sure car loan the new
  borrower meets insurance requirements placed by
  the lender. Ask the lender what these
  requirements are. If you are passing the car to a
  child or relative who will remain under your
  insurance plan, then you do not need to be as
  concerned with this step. You will still want to
  be sure the new owner is listed on the insurance
  policy, which can result in higher insurance
  payments. This is particularly true if the new
  owner is under the age of 25 or a new driver.

9
Source http//www.finweb.com/loans/how-to-transfe
r-a-car-loan-to-another-person.htmlaxzz4HBuFwvkH
http//www.facebook.com/idbibank
https//plus.google.com/IDBIBank
https//in.linkedin.com/company/idbi-bank
http//www.twitter.com/idbi_bank
http//www.youtube.com/idbibank

• Thank You!