Having another person take over your car loan is possible. You may want someone to take over your car loan if you’re struggling to keep up with your monthly payment. In 2025, the average car payment for a new car was $745, and the average payment for a used car was $521, according to Experian.
Having someone take over your car loan may give you some much-needed relief, but the process of getting someone to take over can be quite complex. Below we share five steps for how someone can take over your car loan.
Key Points
• A car loan can be taken over by another person through a process called loan assumption.
• Before a car loan can be assumed, the lender must approve the new borrower.
• With a loan assumption, the original borrower can be released from the financial obligation, and the new borrower can take over the car without having to secure a new loan.
• The steps of taking over a car loan include contacting the original lender, checking the contract, having the borrower check the contract, filing the paperwork, and making a title change.
• If loan assumption is not possible or desirable, other options include refinancing the loan in the new borrower’s name, selling the car, or cosigning a new loan.
Can a Car Loan Be Transferred to Another Person?
Transferring a car loan to another person is possible. An auto loan transfer is exactly what it sounds like — a way to shift an auto loan from one borrower to another. It also involves getting the lender’s permission to transfer the loan and then keeping the lender in the loop. In general, auto lenders may not be thrilled with loan transfers and often might make people who want them jump through hoops to get the job done.
The actual auto loan transfer process depends on the specific contract language and inherent restrictions. An example of the latter: The new borrower may have to meet a strict credit score requirement, take on a new loan contract, and complete a load of paperwork if the lender greenlights the deal.
There’s one common reason that original borrowers may want to transfer their auto loan to another person: They can no longer afford the vehicle loan payments. Whether it’s a job loss, a medical emergency, or some other financial problem, not being able to make your auto payments can eventually mean that having someone else take over the car loan looks like the best solution.
Recommended: How to Trade in Car
How Can Someone Take Over a Car Loan?
The five steps below detail how you may transfer a car loan to another borrower:
1. Contact the Original Lender
Step one is to contact the lender, explain the situation, and make a good case for transferring the loan to another driver.
The auto lender may decide to go forward with the deal if you can prove economic hardship and if the new borrower has the financial means to take over your car loan payments.
That usually means that the lender vets the new borrower just as it would for any auto loan, looking for income, a robust credit score, and a proven history of paying auto loan principal or any other debts.
2. Check Your Auto Loan Contract
Even though you’re cleared to transfer the auto loan and car title to another driver, it’s still crucial to review your auto loan contract. That will tell you who the debt needs to be paid to, whether or not there are any special fees that are triggered when you transfer a vehicle loan, and if there are terms, rules, or restrictions involved in the proper transfer of a vehicle loan.
3. Have Your Borrower Check the Contract
Whoever will be taking over car loan payments needs to check the original loan contract to see what responsibilities, financial and otherwise, may be in play. The original contract won’t necessarily be exactly like the new contract, as the lender may adjust the terms to better fit the new borrower’s credit and income status. But the original contract still serves as a good reference point for the new borrower, and is well worth a look.
4. File the New Loan Paperwork
The new borrower can file the new auto loan application based on the lender’s requirements. If the loan is with the same bank or auto lender, the new loan will probably be similar to the old loan, likely with the same terms and conditions.
Be aware that the auto lender may ask, or even demand, that the new borrower simply cosign the existing auto loan to make things easier for that lender. In that situation, the new borrower cosigns the original loan, takes responsibility for car loan payments, and starts making payments based on the loan’s existing terms and conditions.
Recommended: Auto Loan Refinance Calculator
5. Make a Title Change
When the new auto loan is approved, the next step is to transfer the car title from the old owner to the new owner. An auto’s title signifies the true owner of the vehicle and is required by the lending institution before the transaction can be completed.
Both the old owner and the new one can usually get a title transfer at their local Department of Motor Vehicles. Both parties will need proof of identity, like a driver’s license. A bill of sale or buyer’s order may also be required before the title can be transferred to the ultimate owner.
Proof of active auto insurance may also be needed to complete the transfer.
Recommended: Reinstating a Car Loan After Repossession: What You Need to Know
Alternatives to Transferring an Auto Loan
If you were contemplating trying to transfer your auto loan to someone else but don’t want to deal with the hurdles, here are some alternatives you may consider:
Sell the Vehicle to Someone Else
This scenario may be the cleanest and quickest way to resolve an unwanted auto situation. Selling a car with a lien can be cumbersome, but such a sale may provide fast cash if the value of your car is greater than the outstanding balance on your car loan.
Selling the vehicle may not be right for you if you have an upside down car loan in which your auto loan debt is greater than the value of your car.
Recommended: How Many Car Payments Can You Miss Before Repo?
Ask Family for Temporary Help
Another alternative to transferring an auto loan is having a family member or friend take over your auto loan payments temporarily. If you’re an auto loan holder and you’re having short-term financial problems (if you’re between jobs, for instance), you can ask a trusted friend or family member to take over the loan for a few months until you’re financially solvent again.
The friend or family member could even make extra payments to help you pay off the car loan early. In that event, it’s highly recommended that both parties sign a contract stipulating the length of the contract and how the auto loan will be paid.
If the temporary auto loan payer will also be driving the vehicle on a regular basis, you need to be aware that any parking tickets or toll booth violations will be filed in your name. Traffic accidents are a risk, too, so the temporary driver would also need to be covered by insurance.
Recommended: 9 Tips for Buying a Used Car
Refinance the Auto Loan
To relieve some financial pressure, you can refinance the auto loan. Auto refinancing may potentially let you lower your interest rate or extend the loan term to reduce the size of your monthly payments. To do this, you’ll likely need to have good credit. Some lenders may require a FICO® Score of 680 or higher as part of their auto refinancing eligibility requirements.
Recommended: Refinancing a Car Loan: What to Consider
The Takeaway
It’s possible to transfer an auto loan to someone else, but given the complexity of handling an auto loan transfer, you may want to view the process as a last resort. There may be easier options, like selling the car or refinancing the auto loan.
If you’re seeking auto loan refinancing, SoFi is here to support you. On SoFi’s marketplace, you can shop and compare financing options for your car in minutes.
FAQ
Is taking over a car loan an easy process?
No, the process of how someone can take over a car loan typically isn’t easy. Transferring an auto loan can be complicated for the original borrower, the new borrower, and the auto loan lender.
How do you define the term “car loan takeover?”
A car loan takeover means transitioning an original auto loan from one borrower to another, being sure to get the lender’s permission to transfer the loan. That’s the car loan takeover definition, but the process of how someone can take over a car loan can be complicated.
Is there a good alternative to transferring an auto loan to another person?
Alternatives to transferring an auto loan to another person include refinancing the vehicle, selling the vehicle, or having a trusted family member take over the loan payments temporarily. Your personal circumstances may dictate whether any of those alternatives is right for you.
Photo credit: iStock/FG Trade Latin
SoFi's marketplace is owned and operated by SoFi Lending Corp.
Advertising Disclosures: The preliminary options presented on this site are from lenders and providers that pay SoFi compensation for marketing their products and services. This affects whether a product or service is presented on this site. SoFi does not include all products and services in the market. All rates, terms, and conditions vary by provider. See SoFi Lending Corp. licensing information below.
Disclaimer: Many factors affect your credit scores and the interest rates you may receive. SoFi is not a Credit Repair Organization as defined under federal or state law, including the Credit Repair Organizations Act. SoFi does not provide “credit repair” services or advice or assistance regarding “rebuilding” or “improving” your credit record, credit history, or credit rating. For details, see the FTC’s website .
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
Third-Party Brand Mentions: No brands, products, or companies mentioned are affiliated with SoFi, nor do they endorse or sponsor this article. Third-party trademarks referenced herein are property of their respective owners.
SOALR-Q325-058