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

Transferring a car loan to another person can seem like a daunting task, especially when you're unsure of where to start or whether it's even possible. With the complexities of car loans and the terms set by different lenders, it's not uncommon to feel overwhelmed. But with the right guidance, you can navigate this process smoothly and efficiently.

Understanding Car Loan Transfers

A car loan transfer involves shifting the responsibility of an existing car loan from one borrower to another. This might be necessary if you're experiencing financial difficulties, need to upgrade or downgrade your vehicle, or are simply looking to remove the financial burden from your shoulders. However, it's important to understand that not all lenders permit this transfer, and specific criteria must be met to facilitate such a process.

Key Information on Car Loan Transfers

When considering transferring a car loan, several key factors need to be taken into account, including current interest rates, lender policies, and eligibility criteria for the new borrower.

Interest rates in 2026 range from 6.49% to 12%, depending on the lender and the borrower's credit score. Esteb and Co, with access to over 83 lenders, can help you find a lender that may allow loan transfers.

Steps to Transfer a Car Loan

Transferring a car loan to another person involves several steps. Here's how you can go about it:

1. Contact Your Lender: Begin by reaching out to your current lender to find out if they allow car loan transfers. Not all lenders offer this option, so it's crucial to confirm.
2. Assess the New Borrower's Eligibility: The new borrower must meet the lender's criteria, including having a sufficient credit score and stable income.
3. Application Process: If the lender permits a transfer, the new borrower will need to apply for the loan. This process will involve submitting financial documents and undergoing a credit check.
4. Approval and Transfer: Once approved, the lender will transfer the loan to the new borrower. Ensure all necessary documentation is completed, and both parties understand their responsibilities.

Tips and Considerations

Here are some expert tips to ensure a smooth loan transfer process:

• Evaluate Financial Impact: Consider the financial implications of transferring the loan, including potential fees and changes in interest rates.
• Consult with a Mortgage Broker: Engaging with a broker like Esteb and Co can provide you with options from a wide panel of lenders, increasing your chances of a successful transfer.
• Ensure Clear Communication: Maintain open communication with the new borrower and the lender to avoid misunderstandings.
• Review Loan Terms: Carefully review the new loan terms to ensure they are agreeable for both parties involved.

Frequently Asked Questions

1. Can any car loan be transferred? Not all car loans can be transferred. It depends on the lender's policies and the new borrower's eligibility.
2. Is there a cost involved in transferring a car loan? There may be fees associated with transferring a car loan. It's best to check with your lender for specific details.
3. What happens if the new borrower defaults? If the new borrower defaults, the lender may hold the original borrower responsible unless the transfer absolves them of liability.
4. Can a car loan be transferred to a family member? Yes, a car loan can typically be transferred to a family member, provided they meet the lender's criteria.
5. Does transferring a car loan affect my credit score? The impact on your credit score depends on how the transfer is handled and your prior payment history.
6. How long does the transfer process take? The duration varies by lender but generally takes a few weeks to complete once all necessary documentation is submitted.
7. Do all lenders on Esteb and Co's panel offer loan transfers? Not all, but with access to 83+ lenders, Esteb and Co can help identify options that may suit your needs.