Financing a vehicle isn’t cheap, and refinancing is a great way to get a better rate on a car loan. Another thing refinancing can do is allow you to add or remove someone from an auto loan. If you’re considering having someone else refinance your car loan, you need to make sure the new owner understands the refinancing process and has all proper documentation ready.

Transferring Your Car Loan

How to Refinance a Car to Another PersonThere’s no such thing as transferring a car loan, and while someone can’t technically “take over” it, ownership can be switched if someone else refinances the original loan. Refinancing can remove your name from the loan and give the new owner rights to the vehicle.

To do this, the new owner needs to find a new lender to work with and have the title transferred at their local DMV. Where they could run into problems is if they don’t qualify for refinancing or meet the lender’s basic requirements.

Car Refinancing Process

Whoever plans on purchasing the car needs to go through the refinancing process. Before you discuss refinancing with a lender, make sure you do these three things:

  1. Check credit score and history – The higher your credit score, the more likely it is you get approved. Auto lenders generally look at someone’s FICO score, so you should, too. You can get your FICO score in many different ways, such as for a fee directly from the credit bureaus or FICO. It may also be possible to get it for free. For example, certain credit card providers give their cardholders complimentary access to their FICO score. As for your credit reports, you can go to and get one free copy from each of the three major credit bureaus every 12 months.
  2. Have the proper documents ready – You typically need to bring in proof of income with a recent pay stub, a valid driver’s license, and proof of residency with a recent utility bill.
  3. Rate shop with different lenders – Once you have all your documents ready and know where your credit stands, you can look at what different lenders can offer you. You can apply with several different lenders to get multiple quotes in a practice known as rate shopping. If you rate shop within a given time frame (usually 14 to 45 days), all hard inquiries on your credit reports only count against your credit score as one single hard inquiry.

The Bottom Line

You can’t simply remove yourself from your auto loan and add someone else to it. Instead, someone interested in taking over your car loan needs to go through the refinancing process in order to close out the existing loan and finance the vehicle with a new one. Once the process is complete, the car can be titled and registered in their name.

If you're interested in refinancing your car loan, we want to help. Our trusted partner can help you find competitive quotes online. To get started, all you have to do is complete the simple and free refinance request form on our website.

At Auto Credit Express, we can help those who need car loans find a dealer. We work with dealerships across the nation that specialize in helping consumers dealing with imperfect credit get financed. Get the process started right now by completing our auto loan request form!