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Can I Transfer A Car Loan In Burlington?

Can I Transfer A Car Loan In Burlington?

If times are tough or you want a change of car, can you transfer an existing auto loan to someone else? Can they take over the loan and continue paying it?


Yes you can. If your lender agrees to the transfer.


With the state of the world right now and the uncertainty that comes with a change in our way of life, many Canadians are finding themselves in difficulty through no fault of their own.


We know, we are helping as many of you as we can with car finance, refinancing and auto loans!


One situation we came across a few days ago was someone with a car loan they could no longer afford. They have a close relative willing to take it over and help them out but they didn’t know if it was possible or how to go about it.


That’s where we come in.


Transferring an auto loan in Burlington


We would never suggest transferring an auto loan as a first option but it is certainly an option. If your lender agrees that is.


An auto loan is a contract between you and the lender. You as the named individual(s) on the contract are obliged to make a set payment each month. The lender is obliged to make the agreed funds available and allow repayment at the agreed rate.


Changing any part of that contract requires the agreement of both parties the same as it would any contract.


Many lenders will agree to such a change. They appreciate that people find themselves in difficult situations and will try to help as much as possible. Plus, it’s in their interest to have the loan repaid even if it isn’t by the original borrower as handling defaults can be expensive!


The new borrower will require a credit score sufficient to borrow the outstanding amount and complete the same auto loan approval process. If all is good, the lender will issue a new loan contract in that person’s name and switch the loan over to them.


Once signed, the loan is no longer yours and the other person is now responsible for all repayments.


What happens to the car?


If the auto loan is an unsecured loan, what happens to the car is entirely up to you. That would be between you and the person taking over the loan.


If you have a secured auto loan, the ownership of the car will likely transfer along with the loan. Otherwise, it would be easier the person taking over the loan to get their own loan and pay yours off.


Which is also an option.


Like we said, transferring an auto loan is not usually a first step in handing car finance but it is an option. Not your only option and not always the best option, but it’s there if you need it. As long as the lender agrees.


Contact Unique Chrysler for help, advice and competitive car finance.


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