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If theres still a lien, the owner will have to get permission from the lender to transfer the title to the buyer.
When you transfer a car loan, the lender will note that you did not pay the balance of the loan in full and place that information on your credit history. The credit bureaus will give that information to anyone who pulls a copy of your credit report and it will mean a lower credit score than you previously had.
The Bottom Line Transferring a car loan to a family member can be done. But many lenders wont allow a direct transfer from one borrower to another. Therefore, you may need to come up with an alternative, such as selling your car or refinancing your loan.
Can I transfer my personal loan to another person? Transferring a personal loan to another person is not a direct process. However, you can opt for a balance transfer to a new lender or request a change in borrower, but approval depends on both the lenders policies and the new borrowers eligibility.
If you want the lender to release the car title to the buyer, youll need to cover the full loan payoff amount. If you have positive equity, your lender will reimburse the difference. If you still owe money on the loan, youll need to pay the difference.
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To complete the car loan transfer, the potential new owner will need to file a new loan application with the current lender. Theyll need to go through the loan approval process (including a credit check) before they can be approved to assume your car loan.
The seller will need to contact their lender and confirm that you can take over payments. If the lender allows it, you will also need to apply so the lender can confirm you have the ability to make payments on the loan. However, loan contracts may have a clause that prevents loan assumptions or transfers.

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