Did you know that over 10% of car loan holders consider transferring their loan to someone else at some point? Whether you’re new to car loans or know a lot about them, there might be a time when you need to change your loan agreement.
Many people wonder if they can transfer their car loan to someone else.
But there are rules you must follow about how and when you can change the name on a car loan, which we’ll explain more in this guide
Is it possible to transfer car finance to someone else?
Usually, the answer is no, unless certain conditions are met. But don’t worry, if transferring isn’t an option, there are other ways to handle it.
Car finance is a legal agreement between you and your lender. It’s important to know if you can change the name on the agreement. When discussing this with your lender, honesty is key.
When is it Possible to Transfer Car Finance?
To determine if you can transfer your car finance, your lender will need to know about your specific financial situation and credit history. It’s best if you discuss this before you sign any agreements.
Being honest with your lender about your financial status is important throughout the car finance process. Sharing this information not only helps them find the best options for you but also increases the likelihood of them considering a transfer of ownership.
If you’re transparent about your situation and your lender understands your finances well, they might agree to change your hire purchase or transfer your PCP to someone else. However, this isn’t guaranteed and depends on the lender.
What should I do if I can’t transfer my financed car to someone else?
If changing the name on your car finance agreement isn’t possible, there are different options depending on your lender. One common solution is to pay off the remaining debt you owe and then get a new car finance agreement.
You can decide how to pay off the debt, but getting financial help from a guarantor can make it easier.
Don’t hesitate to ask your lender for advice on how to handle this situation. They can guide you through the process to make it as simple as possible.
Getting a Guarantor for Your Car Finance Agreement
To avoid potential problems with your car finance, consider having a guarantor co-sign your agreement.
A guarantor is someone who agrees to take over your loan payments if you can’t manage them yourself, especially if your credit score is low or limited.
Before including them in your agreement, you must get permission from your chosen guarantor, and they’ll need to undergo a credit check. Having a guarantor offers a safety net in case you face financial difficulties.
Does Changing my Finance Agreement Mean Changing Car Ownership?
It’s important to understand that transferring car finance doesn’t automatically transfer ownership of the car. Simply handing over the car, even with a loan, isn’t enough. The process is more involved and must be registered with the DVLA.
In terms of ownership, a car has both an owner and a keeper. The keeper is the person listed on the registration or logbook, while the owner is the one who bought the car.
If you want to learn how to transfer car ownership, you can find the process detailed on the DVLA website.
If you’re considering new car finance or transferring your current finance to someone else we’re here to offer the support and advice you need to manage your finances effectively. You can also talk to us about hire purchase finance or PCP finance, or explore more articles like this on our blog.
Final Thoughts
Transferring car finance to another person can be a complex process, with only certain conditions allowing for such a transfer. It’s crucial to maintain transparency with your lender regarding your financial situation, as this increases the likelihood of them considering a transfer of ownership.
If transferring isn’t feasible, alternatives such as settling the remaining debt or involving a guarantor can provide solutions to navigate the situation effectively. Remember, understanding the distinction between finance agreement and car ownership is essential, and seeking guidance from experts can help ensure a smooth process.
FAQs
Can I transfer my car finance to someone else?
Usually, no. Transferring car finance requires meeting specific conditions. However, if it’s not possible, there are alternative solutions to explore.
When can I transfer my car finance?
The possibility of transferring car finance depends on your lender’s assessment of your financial situation and credit history. Discussing this before finalizing agreements is advisable.
What if I can’t transfer my financed car to someone else?
If changing the name on your car finance isn’t feasible, options vary by lender. One common solution is settling the remaining debt and initiating a new finance agreement. Seeking advice from your lender is essential in such situations.
Should I get a guarantor for my car finance agreement?
Having a guarantor can provide support if you struggle with loan payments, particularly if your credit score is low. Ensure to obtain consent from your chosen guarantor and undergo a credit check before including them in the agreement.