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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

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    Is the other person a family member? Jurisdiction (state)? Will you still have use of the car? Will you remain on the title/registration? – mkennedy Apr 18 '17 at 23:20
  • A family member. Fla. No I will not use the car. I want to be removed. I purchased the car in my name for the person but they aren't doing right by the payments – Bre Apr 19 '17 at 3:07
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    You can't force the other person to get a new loan. Is the other person on the title or is the car titled in your name only? – mkennedy Apr 19 '17 at 15:08
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    You will need this other person to agree to what you are doing, as a starting point. The bank will not re-write the loan without the other person's consent. – Grade 'Eh' Bacon Apr 19 '17 at 16:33
  • If the car is in your name and they refuse to give it back you could threaten to report it stolen. – D Stanley Apr 19 '17 at 16:46
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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.

  • Yes Karen that was the problem so what will i need to do since there is still an open loan in my name but i want the remaining loan to be in there name – Bre Apr 19 '17 at 14:10
  • So what will be the best way to do it – Bre Apr 19 '17 at 18:41
  • You probably can't get the loan in their name, but if you can, it will be because the bank and the person you bought the car for are all willing to go along with it. So start by talking with them. If everyone says no, the fastest way to get rid of the loan is by selling the car and paying off the loan with the money from the sale. – Karen Apr 19 '17 at 19:38
  • @Karen It's going to be difficult to sell a car you don't have possession of (just legal title to) – D Stanley Apr 19 '17 at 19:41
  • Obviously, but the OP can ask for the car back or if they have a key, simply take it and put it in a garage or someplace the other person is unlikely to find it. It's a bad situation to be in, and any solution will have serious flaws. – Karen Apr 19 '17 at 20:02
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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.

  • Im trying to see what will be the best option for me because when it first started off the person was paying good but now they aren't and its hurting me for what in trying to do – Bre Apr 19 '17 at 14:14
  • How do i go about doing this – Bre Apr 19 '17 at 18:42
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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:

  1. 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.
  2. 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.
  3. 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.
  4. 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.
  5. If they again refuse, report the car stolen. Let the police help you get your property back.

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