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Posted in Auto Loans
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Jerry918

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How do i go about someone taking over my car payments?
I am trying to trade in either one or both of my cars for a new one. However, I have a friend that would like to try and take over the payments on one of the cars. How would we go about this? I'm aware he will need to have his credit checked and everything, but do I try and call my lender and get them to do it or what?

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He is going to have to get a loan to pay off the balance on your loan. There is no going to the bank and switching names on the loan, it doesn't work that way. See what the payoff is on your loan and tell your friend the amount and then they will have to try to get a loan. It would not be wise to let him take the car and make payments to you for a couple of reasons. One reason is that he could trash the car and decide he doesn't want to pay you for it any more, another reason is that it will count against your "debt to income" when you go for your next auto loan.

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1. Is that loan assumable? I have not heard that term for maybe 20 years(lol I am old), usually referring to mortgages and car leases.

2. If it is assumable? Are you being released of all oblations from that loan or you still be liable for it?

Most likely would be like what TryingToUnderstand said, need to get a new loan and then payoff the existent one.

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