Transfer Car Loan? Here's How to Shift Fast (2026)

Transferring a car loan from one person to another can seem like a daunting task, but it might be a necessary step for many Australians. Whether you're looking to pass on the financial responsibility due to a change in personal circumstances, or you're the person ready to take over a loan, understanding the process is crucial. This comprehensive guide aims to provide you with actionable insights and practical advice to navigate this financial decision smoothly.

Understanding Car Loan Transfer

A car loan transfer involves shifting the responsibility of a loan from the original borrower to a new individual. This process isn't as straightforward as selling a vehicle outright, as it requires approval from the lender and agreement between both parties involved. Lenders need to ensure that the new borrower is capable of handling the loan repayments. It's important to note that not all lenders allow car loan transfers, so it's vital to check the terms of your loan agreement.

Current Rates and Requirements

In 2026, car loan interest rates in Australia can range from 6.49% to 12%, depending on various factors such as the borrower's credit score, the age of the car, and the loan term. These rates are subject to change, so it's essential to check with your lender for the most current options. Eligibility criteria typically include a stable income, a good credit history, and the ability to provide necessary documentation such as identification and proof of earnings.

Lender	Interest Rate	Eligibility Criteria
Lender A	6.49% - 8.00%	Minimum credit score of 650, stable income
Lender B	7.00% - 9.50%	Minimum credit score of 700, full-time employment
Lender C	9.00% - 12.00%	Accepts lower credit scores with higher income proof

Steps to Transfer a Car Loan

If you've decided that transferring the car loan is the best option, follow these steps to ensure a smooth transition:

1. Review Your Loan Agreement: Check if your current lender permits loan transfers and understand any potential fees or penalties involved.
2. Find a Willing Transferee: Ensure the person taking over the loan is willing and able to meet the lender's criteria.
3. Contact Your Lender: Inform your lender about your intention to transfer the loan and inquire about the necessary documentation and processes.
4. Application Process: The new borrower will need to apply for the loan transfer. This involves submitting their financial information and undergoing a credit check.
5. Approval and Documentation: Once approved, ensure all relevant documents are signed, and the transfer is formalised with the lender.
6. Update Registration: Don't forget to update the vehicle registration to reflect the new owner's details.

Tips and Considerations

Transferring a car loan is not a decision to be taken lightly. Here are some expert tips to consider:

• Evaluate Other Options: Before proceeding, consider alternatives such as refinancing or selling the vehicle outright.
• Check for Early Repayment Fees: Some loans may incur fees for early repayment, impacting the overall cost of the transfer.
• Ensure the New Borrower is Reliable: It's crucial that the person taking over the loan is financially responsible to avoid potential complications.
• Consult with a Financial Advisor: If you're uncertain about the implications of a loan transfer, seek advice from a financial expert.

Frequently Asked Questions

• Can every car loan be transferred? Not all car loans are transferable. It's essential to check with your lender regarding their specific policies.
• Will transferring a car loan affect my credit score? The impact on your credit score depends on the handling of the transfer. Ensuring all payments are up-to-date will mitigate negative effects.
• How long does the transfer process take? The process can take anywhere from a few days to several weeks, depending on the lender's procedures and the efficiency of document submission.
• Are there costs associated with transferring a car loan? Yes, there may be administrative fees or early repayment charges involved. It's vital to clarify these with your lender.
• Can Esteb and Co help with car loan transfers? With access to 83+ lenders, Esteb and Co can provide guidance and options that may include loan transfer solutions.

Transferring a car loan can provide significant relief or opportunity, depending on your situation. By understanding the process and considering all factors, you can make an informed decision that aligns with your financial goals. Whether you're looking to initiate a transfer or seeking advice on car loans, Esteb and Co's extensive network of lenders is here to assist you with professional insight and tailored solutions.