I have a car in my name and want to get it refinanced in someone else name so it can be their car and they can take over the payment what is the best place to start
Your first step is to talk to the current lender and ask about refinancing in the other person's name. The lender is free to say no, and if they think the other person is unlikely to pay it back, they won't refinance. If you're in this situation because the other person didn't qualify for a loan in the first place, the lender probably won't change their mind, but it's still worth asking.
From the lender's point of view, you'll be selling the other person the car. If they qualify for a loan, it's as simple as getting the loan from a bank, then doing whatever is required by your state to sell a car between either private parties or between relatives (depending on who the other person is). The bank might help you with this, or your state's DMV website.
Here are a few options that don't involve changing who is on the loan:
- Sell the car, and leave them with whatever transportation they can afford without your help, or with whatever help you're willing to give. If it's a new or almost new car, this might be a good option. They can find a car for $3000-$5000 that shouldn't need major repairs in the next few years. Just make sure you have an independent mechanic check it out before buying it.
- You can keep paying this loan and chasing the other person down for the money. If you can't afford to keep paying the existing terms while you do this, talk to the bank about changing the payment plan. Since their priority is getting their money back, they will often work with you on this even if it means getting their money more slowly. You may end up with a different interest rate.
- If you have a written agreement with the other person, you might be able to take the issue to court. If you're considering this, talk to a lawyer.
Taking out a loan for another person is always a big risk. Banks have entire departments devoted to determining who is a good credit risk, and who isn't, so if a person can't get a loan from a bank, it's usually for a good reason. One good thing about your situation: you actually bought the car, and are the listed owner. Had you co-signed on a loan in the other person's name, you'd owe the money, but wouldn't even have the car's value to fall back on when they stopped paying.
The other person has to decide that they want to be wholly responsible for the loan, and they have to be able to qualify for the loan. They are in essence purchasing the car from you with the sale price being the remaining balance of the loan. You will then use the processed from the new loan to pay the old loan off completely. They will then take the bill of sale to the state DMV/MVA to register the car in their name.
You should have them start with their bank for a new car loan.
I don't know of any way to "transfer" a debt to another person without their consent or the lender's consent. You are responsible for the loan, and you need to either pay it or give up the asset that it's tied to (the car). At least you weren't just a cosigner with no title to the car - then you'd be in worse shape. If you don't want your credit tarnished, I would start (or keep) making the payments, knowing that you are getting the equity that results from the principal you're paying (you're only out the interest portion).
If it were me, here are the things I would do:
- Ask the family member to catch up on the late payments. It's possible that they are just trying to slip away from the responsibility, and if confronted they will comply. At this point you could offer to sell them the car provided that they can get financing on their own.
- If they refuse, ask for the car back. Your name is on the title so this is a perfectly reasonable request. It's the same as if a neighbor borrowed a lawnmower and didn't return it.
- If they refuse, go to Florida and take the car back. It's your property, so this should be perfectly legal and reasonable, but you might want to check with a lawyer in your state and Florida to be certain.
- If you can't, threaten to report the car stolen. This is again perfectly reasonable. They are in possession of property that belongs to you without your consent. You gave them permission to use it so long as certain conditions were met - if those conditions are not met they should give the car back.
- If they again refuse, report the car stolen. Let the police help you get your property back.