How do I allow someone to assume my car loan? |
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Answer:
You’re trying to keep your credit clean but the Selling the car outright is fine, if the sale will bring the amount of the car loan, but many times the car’s value depreciates to the point that the owner would take a loss and still have to repay the loan. There is another option. You could consider letting someone assume the car loan, but you need to do your homework first. Most importantly is to check the terms of your vehicle’s loan contract. Some lenders write loan documents allowing transfer of a loan to another individual. In that case, one needs to contact the lender to discover policies and procedures in place for a loan assumption. If the car loan does not indicate that a loan is assumable, don’t rule out the idea until one has checked with the lender. All assumptions must meet the approval of the lender or lienholder. To encourage someone to assume your loan, be sure and keep payments up to date and have payment and lender information, as well as, loan documentation available. As an additional courtesy to a prospective buyer, contact lenders to have the approximate payoff balance on hand. Check with a local banker or credit union for further information on auto loan assumptions. Trackback(0)
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