Can I transfer my car loan to another person? Your Guide

There are a number of ways that people can get over their heads with monthly payments. After all, car loan payments are at an all time high with new car payments averaging $725 per month. With the added cost of insurance, gas, and maintenance, owning a car is incredibly expensive. But if your monthly payments are getting too high, what can you do? Is it possible to transfer your car loan to another person and walk away?

Here’s what you need to know about transferring your car loan and how you can decide what to do if you can’t afford your monthly car payment.

Can you transfer a car loan?

First things first: is it even possible to transfer a car loan to another person? The short answer is not usually, but there may be certain situations where a lender will allow it. The terms of a car loan are based on a number of factors, and perhaps the biggest factor is the financial situation of the applicant. Better terms, conditions, and car loan APRs are offered to people who have a good history of making on time payments. The better your credit score and credit history is, the better your loan terms will be.

Transferring a loan to someone else means that they will assume the exact loan and loan terms that you have, even if they have a drastically different financial history than you. If their financial situation is worse than yours, then the lender is taking on a greater risk without any compensation. If their financial situation is better than yours, then they are getting unfavorable terms.

When you sell a car that is still being financed, a lender will instead look at the new borrower’s information and make a loan offer based on that. They will issue a new loan that is separate from your agreement entirely.

But all that being said, there are some situations where a lender may agree to transferring a car loan. It will depend on the language of your loan contract and there may be fees associated with it. A transfer may be allowed in certain situations, such as:

You are moving overseas and do not have the time to sell your car properly.
You are in a very tight financial spot and need to get out of your loan agreement immediately.
You are giving the car as a gift.

Your car loan will have language in it that pertains to transferring your loan. If your car loan is “assumable”, then it can probably be transferred to another person. But if you are unsure of the language in your contract, be sure to contact your lender and explain your situation.

How to transfer a car loan.

Discuss the transfer with your lender.

If you are allowed to transfer your car loan (and even if you aren’t allowed) your first step is to call up your lender and discuss your situation. If there is language that excludes it you may still be able to talk them into it. The worst they can do is say no. If your loan is assumable there will be conditions of the transfer.

Have the new borrower apply.

The new borrower will have to meet their minimum credit score and any other criteria that the lender may have in place. The lender will review their application and determine if they will allow the transfer.

Transfer the loan and the title.

When all of the paperwork is done the lender can formally transfer the loan and you will need to transfer the car’s title. You should visit your state’s Department of Motor Vehicle to determine what you will need to do this. Typically you will need to have the bill of sale, registration, and money for the transfer fee. Be sure to transfer the title as soon as you can to avoid any problems. Contact your insurance company as well to remove the car from your policy and have the new owner insure the car themselves.

What fees are associated with a car loan transfer?

If you are allowed to transfer your car loan you may be responsible for some additional fees. The new borrower will most likely be responsible for them, but they may include:

Application fee
Transaction fees
Closing fees
Fees for missed or late payments
Registration fee (for the new borrow to register with the state)

What should I do if I can’t transfer my car loan?

If your car payments are burying you but you are unable to transfer your car loan to another person, there are other steps you can take to get yourself into a more comfortable financial situation.

Contact your lender and ask for a deferment.

If your financial woes are temporary, a deferment may be a great way for you to get your head above water. Deferring your payments for a few months will pause your loan and allow you to catch up. It’s important to keep in mind that you will still accrue interest during this time, but it’s an easy and temporary way to help you out of a tight spot.

Refinance your car loan.

Perhaps the most straightforward way to deal with high monthly car payments is to refinance your car loan. Refinancing is when you take out a new loan with better terms and conditions that will replace your current car loan. Refinancing may help you get a lower car loan APR and can help you change your repayment period. If you lengthen your repayment period you will have more time to pay off your loan and will greatly reduce your monthly payment. This can be a great option for many people who are struggling and need a little more wiggle room. Refinancing your car loan is easy, especially if you use a company that specializes in car loan refinancing. They will have relationships with lenders that will help you to get the best car loan possible and can help guide you through the refinance process.

Add a cosigner.

If you want someone else to be responsible for the car and the loan alongside you, consider adding a cosigner. You will both be equally responsible for the loan. This might be a good option if you want to take the car back in a little while and assume sole responsibility. You will still need to refinance the loan to add a cosigner, but adding a cosigner may actually help you get a better car loan APR and better terms and conditions. When you apply for a refinance with a cosigner the lender will consider both of your finances and credit histories. So if your loved one has a better credit score than you it may help you secure a better rate.

Trade your car in.

If your car payments are decidedly too much money every month, another good option might be to trade your car in. If you trade your car in and get a cheaper car you will lower your car payments and still have a dependable mode of transportation.

Try leasing instead.

Financing a car is significantly more expensive than leasing a car. While financing a car is great because it builds equity, leasing will allow you to have a dependable car for much less money every month. Trading your car in and leasing instead can help you pay for any fees and help reduce your payments further.

Sell your car.

If things are especially difficult, refinancing your car loan may not be enough to put your finances in order. If you lost your job or have had another significant life change, it might be best to sell your car and figure out a different mode of transportation. Perhaps you can try depending on public transportation for a little while until your situation gets sorted out more.

Can I transfer my car loan to a credit car?

If you are offered a 0% introductory APR for a credit card, you may wonder if you can transfer your loan balance to your credit card. It may offer you a lower APR and cash back, both of which. So if you are struggling with payments this may seem like a great idea. While it can be a good option for some people, there is a significant disadvantage: missing a payment could be catastrophic. A missed or late payment could result in a skyrocketing APR that will put you in a much worse position than you were in previously. Refinancing your car loan is a safer option that does not come with the risk of a missed credit card payment.

That’s everything you need to know about transferring your car loan to another person.

Transferring an auto loan may be allowed in certain situations, but it is not widely offered or practiced. But selling your car to another person or refinancing your loan with a cosigner may help you reach your end goal and reduce your monthly payments.

If car loan refinance sounds good to you, get in touch with Auto Approve today!

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The 3 Best American Road Trips To Take This Year

Thinking about a road trip this year, but not sure which of the many amazing classic American road trips to take? You’re in the right place.While it’s hard to say that any one singular road trip is the best most beautiful roast trip to take – the United States has tons of interesting terrain, stunning vistas, and cultural landmarks from sea to shining sea – we’ve compiled three favorites that you can start planning right now.There are many more great options. Traveling Route 66 or visiting the Grand Canyon are evergreen classics. But these uniquely excellent drives were selected for weather, accessibility, and combination of natural wonders and modern conveniences. American Road Trips to Take In 2025What’s the best road trip to take for you? Only you can decide that, but it’ll depend on who you’re driving with (or if you’re flying solo!), where you’re starting your journey, and how long you want to spend in the day, per car and overall. Each of these road trips can be shortened or lengthened with fewer or more stops, and each has their pros and cons. And once you’ve picked one, check out our road trip planner.1. New England: Jamestown to Acadia National ParkIf you’re craving a seaside getaway, it doesn’t get much more iconic than a drive up the New England coastline. This is a great option for summer and fall road trips. During the summer, you get cooler temperatures than much of the US, sea breezes, lobster rolls, and beach days. During the fall, you get stunning fall colors, script temperatures, bonfires, and apple pie.This is a particularly great road trip for families and those not inclined to spend endless hours in the car, since the total driving time is fairly short and the stop options are plentiful, from bustling city life in Boston to the amazing restaurants of Portsmouth, NH, and Portland, ME, to the lighthouses, ocean views, and sprawling forests of coastal Maine and Acadia National Park. Driving time (one way without stops, approx.): 6 hoursStop ideas: RI: Jamestown, Providence; MA: Cape Cod, Boston, Salem; NH: Portsmouth; ME: Ogunquit, Portland, Freeport, Augusta, Bar Harbor, Acadia National Park You won’t want to make all these stops in a row, but if you’re driving round trip, you can always see the LL Bean boot in Freeport one way and make time for Salem’s witches (or lack thereof) on the way back.One word to the wise: This road trip won’t work in the winter due to the weather in the Northeast. Driving in winter conditions doesn’t make for a relaxing vacation!2. Smoky Mountains: Asheville to MemphisIf you’re interested in a road trip through classic Americana, a trip from North Carolina to Tennessee might be just the ticket. By stopping in Nashville and Memphis, you can see much of the heart of American music history, and the barbecue across the region is iconic. And the culture isn’t half of it – this drive takes you through the stunning Smoky Mountains and is widely considered one of the most beautiful road trips you can take.Driving time (one way without stops, approx.): 8 hoursStop ideas: NC: Charlotte, Asheville, Great Smoky Mountains National Park (crosses multiple states); TN: Johnson City, Pigeon Forge, Knoxville, Chattanooga, NashvilleA few of these are out the way from the others – stopping Charlotte would really mean starting or ending in Charlotte, and Johnson City’s out of the way, but a fine place to stop if you choose to focus on exploring the Smoky Mountains.This trip is going to have the hottest weather of the options on this list in the summer, but nothing compared to what you might experience in Zion or Big Bend. The Smoky Mountains and Asheville stay pretty cool, but by the time you get to Memphis, depending on the time of year, it can get into the 90s Fahrenheit. The good news is, all these places stay relatively temperate through the winter, so there’s no bad time of year to visit.Be prepared: Cell service is weak or non-existent in some parts of the Smoky Mountains, so you’ll want to make sure you have a paper map and a well-stocked car emergency kit, just in case.3. Pacific Northwest Meets Big Sky Country: Seattle to YellowstoneWhen it comes to iconic American experiences, Yellowstone National Park is high on the list. But to get the full flavor of the Pacific Northwest and Big Sky Country, start or end the drive in Seattle. Taking time to stop in Washington’s wine country and see Puget Sound adds another incredible set of sights and experiences, and Seattle makes a great jumping off point to visit any one of Olympic, Mount Rainier, or North Cascades National Park. From there, you’re diving into the heartland, whether you want to head up to Glacier National Park, down to Grand Teton, or straight to Yellowstone.Driving time (one way without stops, approx.): 11.5 hoursStop ideas: WA: Seattle, Puget Sound, Washington Wineries, Spokane; MT: Glacier National Park, Butte Historic District, Bozeman, Big Sky; ID: Boise; WY: Grand Teton National Park, Yellowstone National Park:This is clearly the most time-consuming, robust road trip of the three. If you’re looking for a big trip, this is the one. Yes, it’s a commitment, but worth it for the stunning views and once in a lifetime experiences. Just remember, when you’re spending a lot of time in National Parks, you want to make sure you plan your road trip meticulously. Gas stations and places to stay the night can be few and far between, and some things may book up months in advance.Don’t have a ton of time but want to see Big Sky Country? You can also fly into Yellowstone Airport (WYS) and land just two miles from Yellowstone National Park.Which of These 3 Beautiful Road Trips In The United States Sings to You?There’s no wrong choice – you want to choose something that fits the amount of time you have, your budget, and your interests.Want to spend more on your dream road trip and less on your monthly car payment?Most people are paying more than they need to on their auto loan, thanks to dealership rate markups! AutoApprove can help you find a better rate in just a few clicks. Tell us a bit about your vehicle – no commitment required – to find out how much you could potentially save through refinancing. An AutoApprove representative will help you find the deal that’s right for you, and once you’ve selected your refinance, we do the paperwork for you, easy as that!That means more money in your pocket for the things that matter most – whether that’s a soul-searching solo trip or an unforgettable family vacation.Get your free quote now.

Useful Skills You Can Learn While Driving

Have you ever considered learning while you drive? Whether you want to make better use of a daily commute or are heading out on a long solo drive, if you want to learn a skill from behind the wheel, we have some ideas for you!The key to learning on the road is to choose something you can do with just audio media – and to make sure nothing you do is so engrossing that you lose focus. It’s important that you still drive safely, no matter what. Essentially, we recommend skills you can learn from an audiobook or podcast and repetitive activities that allow you to build up your knowledge or talents over time.Let’s take a look.Things You Can Learn While DrivingThe average American driver spends, according to a AAA survey, just over an hour in their car every single day. Why not find ways to be productive with all that time? Here are some things you can pick up while you drive.1. Learn a LanguageThis is probably the most popular skill to tackle in the car. Whether you’re brushing up on a language you learned in high school, preparing for a trip, trying to improve your chances at a new job, or learning just to stay sharp, there are tons of good reasons to learn a language while you drive. And, yes, while you’ll also need to supplement with written lessons, you can work on your listening and speaking skills in the car.Depending on which language you want to learn and your level, you’ll need different resources, but here are a few ideas for ways to get started:Starting from 0: Listen to podcasts that teach you the basics (for example, Pimsleur and LanguagePod101 both have podcast-based language lessons)For skill building: Listen to programs designed for language learners (for example, News in Slow is designed for people currently learning at a beginner to intermediate level to practice listening comprehension) For advanced learners: Grow your vocabulary and get closer to fluency by listening to music or news in your target language and trying to capture any unfamiliar words, phrases, or ideas2. Listen to the Sounds of NatureIf you’re interested in the natural world, you could use the time to learn things like the calls of birds local to your area. Avid birders in particular might find this interesting – and there are many resources for birders, since it’s such a popular hobby (BirdNote Daily is a good option) – but resources exist for frog fans and other animal lovers as well, dependent on your region. And there’s no reason you need to stick to your own backyard! Noisy by Nature is a kid-focused podcast that introduces the sounds of Australian wildlife (and is, frankly, fascinating for all ages).As an added bonus, nature sounds can also be relaxing, which is helpful when you’re stuck in traffic in a 20 minute slowdown.3. Write Better EmailsWhether you’re an English learner, a complete word nerd, or someone who struggled with writing in school and wants to up their email game, there are tons of great podcasts about English grammar, word usage, and how people speak. A few top recommendations include: Grammar GirlThe AllusionistVocal FriesYou’re Saying It WrongWebster's Word of the DayExpanding your vocabulary, mastering complex grammar rules, getting into the nitty-gritty of style, and discovering common malapropisms and mistakes can make you a better writer, reader, and conversationalist.4. Level Up Your Financial LiteracyThere are tons of great personal finance podcasts being made right now. If you’ve never spent much time thinking about budgeting, saving, or your own attitudes toward money, learning about the basics of finance while you drive could be a huge help!Planet Money, which covers current events in the world of money and investment, is a fascinating and informative podcast, while So Money, Money For the Rest of Us, and Afford Anything are a few of the many long-running hits in the finance space. Read reviews and find a podcast that fits your taste – and just remember, no podcast gives specific advice, so ask a professional before making big money moves!Trying to be smarter with money?You don’t need to learn any new skills to refinance your vehicle and start saving money. Most people are paying more than they need to be on their auto loan. A refinance can help you secure a lower rate and pay less. Plus, it’s easy! AutoApprove can help you find the right deal for your unique situation – and do the paperwork for you.Get a free, no-commitment quote to see how much you could save.5. Practice Using Your VoiceWhether you’re a nervous public speaker or thinking about getting into amateur opera, the car is the perfect place to get vocal reps in. There are tons of voice teachers making content online – you could find a vocal warm-up to try while you drive, or look up exercises in advance and put them into practice when the car door is closed.Whether you rehearse a presentation or sales pitch, practice improvising speeches, or sing do-re-mi, the car is a rare place where you can let yourself be as noisy as you want, take advantage of it!6. Build Your Understanding of MathRegardless of your current level of math expertise, you can skill build while in the car. Some people work on basic skills like solving simple number problems, memorizing multiplication tables, or learning more of the digits of pi. Or, if you prefer to simply listen, there are many engaging math listens that can make you fall in love with math. A few top podcast options include: The Joy of XBreaking MathMy Favorite TheoremOpinionated History of MathematicsLeveling up your understanding of math can help you see the world in a new light! And hey, maybe you can impress your friends with your new intel.7. Learn About the WorldLast but certainly not least, there are so many great educational podcasts about all manner of things, from history to economics to niche scientific fields. Taking the time to simply learn broadly about different topics that interest you wherever you can is a very productive way to spend your time in the car. Some of the best options happen to overlap with our recommended podcasts for long drives, like Ologies, 99% Invisible, The Happiness Lab, and Revolutions. But the thing that interests you most when you set out on the road is always the best option, whatever that may be – even if it’s something silly like the workings of ‘90s cars or learning to understand Morse code. Whatever you choose, expanding your worldview and learning something new is always a good choice!And Those Are Seven Useful Ways To Spend Your Driving TimeMost of us spend quite a bit of time behind the wheel, trying to make something of that time is an admirable pursuit! From language learning to amateur opera performance, there’s always something interesting to do to pass the time and challenge your mind.But refinancing your vehicle doesn’t take any time at all.You could be paying less monthly on your auto loan, putting more cash back in your pocket for the things that matter most. Find out how much you could save with just a few clicks and no commitment. Get your free quote now.

5 Things Every Car Owner Should Know

Let’s talk about five of the essential things every car owner should know.There are tons of skills you come by naturally as you start driving. Some things you learn for your drivers license exam, some skills you pick up as you start driving. But there are a few things not everyone knows how to do that can make you a better car owner and help you feel more confident on the road.These are some of the top skills you need to take time to learn once you own a car. Let’s take a closer look.Essential Skills for Drivers and Car OwnersTake a peek at the list. Do you know how to do all of these things? Most people will have learned at least some of these skills naturally, but taking time to really master them can help you drive safer and keep your car in great condition longer.1. How to Check and Change a TireIt’s important to get to know your tires, and recognize the right tire for your vehicle. But buying the right tires is only the beginning – tire maintenance and tire changing are super handy skills for every driver. The same is true for recognizing, checking, and changing or replacing fluids like engine coolant, brake fluid, windshield washing fluid, transmission fluid, and engine oil. If you see a liquid coming out of your vehicle, being able to recognize what fluid it most likely is and whether or not it constitutes a safety hazard is key.To get you started here are the essentials of changing a tire:Find somewhere safe to park on a level, firm surface.Turn on your hazard lights.Gather your tools: spare tire, car jack, lug wrench, and your owner’s manualReview any important information in the manual about tire changes for your specific vehicle Loosen but do not remove the lug nuts (which may be under the hub cap)Position the car jack at your vehicle’s jack points based on the instruction in the car owner’s manual (sometimes marked with a notch on the chassis)Slowly raise the car with the jackFinish loosening and remove the lug nuts, keeping them somewhere you can easily find them again where they can’t roll awayRemove the flat tire and replace it with the spare, lining the spare up with the wheel studsReplace the lug nuts and gently start screwing them in by handLower the car Use your lug wrench to tighten the lug nutsPut all your equipment back where you usually keep itCheck tire pressure for all tires (you may want to go to a garage to make sure everything’s good to go and your tire pressure is even)Return to the road, driving slowly and carefully if you’re driving on a donutPracticing changing your tire a few times at home can make it much less stressful if and when you need to change one on the road.2. How to Deep Clean Your Car YourselfWhile automatic car washes are handy and typically fairly affordable, deep cleaning and detailing your car can get expensive and time consuming. Knowing how to keep your car clean and how to handle stains and wear and tear on the inside and outside can improve your driving experience. After all, according to AAA, American drivers spent an average of 60.2 minutes behind the wheel every day as of 2022. Making that space clean and comfortable can help that hour of driving feel less stressful.Plus, deep cleaning your car yourself can save you money, and some people find it meditative!Speaking of saving money…Here’s one more thing every car owner should know how to do: lower their car payment quickly and hassle-free with Auto Approve!Get a free quote to see how much you could save.3. How to Read A Paper MapOnce a ubiquitous skill, knowing how to read a paper map is less and less common with the rise of GPS and digital map apps for the phone and in-car systems. However, it’s important that drivers of all ages master this skill and keep it sharp to be safe. You never know when you could lose service or battery power. Having a map in your glovebox and knowing how to read can help save headaches should you land in a tough spot. The last thing you want in the case of a breakdown is to add not knowing where you are to an already stressful situation.And reading a map isn’t all – all drivers should have on hand and know how to read their vehicle’s manual. You never want to be stranded somewhere trying to guess the meaning of an alert you’ve never seen before!While reading a map might not be absolutely essential when you’re staying close to home, it can come in handy if you want to plan a road trip – and even more so when you hit the road and venture into new areas further from home (and, depending on where you’re heading, further from robust network coverage!).4. How to Drive in Bad WeatherGiven shifting norms for how often we see major storms – and new types of storms hitting areas that once rarely saw, for example, snow storms or hurricanes – knowing how to drive, and when not to drive, in all kinds of weather is an absolute must.Driving in winter storms or heavy rain can mean different risks and challenges than, say, very strong winds or a heatwave. Prepare for all possibilities by brushing up on your driving skills and keeping an emergency kit in your truck.In general, when the weather is crazy and you’re on the road, slow down, leave extra space between you and the car in front of you, and remember that if you start to slide, the best thing to do is take your foot off the gas and gently steer the front of your car toward the direction you want it to go.5. How To Recognize Warning Signs from An Old CarLast but certainly not least, assuming you do everything right and your vehicle serves you well for over a decade, you’ll want to start keeping an eye out for signs of wear and tear that might mean a car is on its last legs. There’s a rule of thumb called the 30/60/90 rule in auto maintenance that suggests you should take your car in for servicing and preventative maintenance every 30,000 miles. This is true regardless of how long the vehicle’s been on the road and whether or not it’s showing any of the major old car warning signs. Preventative maintenance can help catch problems early and let you drive with confidence even after years with your vehicle. If everything’s looking good, you just need to keep an eye out for rusting, brake issues, bumping or bouncing, or a persistent check engine light. And One More Thing Every Car Owner Needs to Know…How to lower their car payment! Auto Approve can help you lower your vehicle payment in minutes.Most people are overpaying on their auto loanIf you got your vehicle from a dealership, there’s a good chance you’re overpaying on your auto loan, thanks to dealer markups on rates. Auto Approve can help you find out whether you’re eligible for a better rate and start paying less through refinancing. To get started, all you have to do is answer a few questions, no commitment required. Then, an Auto Approve associate can help you find the best deal for you. Once you choose your refinance, Auto Approve does the paperwork, making the process quick and easy!Get your free quote to see how much you could save today.

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Can You Transfer a Car Loan to Another Person?