Can I transfer my car finance?
Unfortunately, car loans are specific to the vehicle you’ve financed, meaning you cannot transfer the loan from one car to another, nor can you transfer it to another person.
However, this doesn’t mean you’re stuck with a car that no longer suits your needs or budget. You have several options, even if your agreement isn’t finished. You could:
- Pay the settlement amount and clear the finance
- Opt for voluntary termination
- Refinance your car
The best choice depends on your personal situation and the reason you want to make a change. If you’re unsure, reach out to us, and we’ll help you determine the best solution.
Can you transfer car finance to another person?
No, you cannot transfer an existing car finance agreement to another person. Lenders evaluate each applicant on an individual basis, taking into account factors like credit history and financial stability. Therefore, the finance agreement cannot be transferred.
Can I change my car before the end of my finance agreement?
Each car finance agreement is designed for a specific vehicle, so you can’t directly switch cars during the term of your loan. However, if you’d like to change cars, you could settle your current finance agreement first. This would typically mean paying off the remaining balance on your loan (the settlement figure).
Can you sell a car on finance?
Yes, you can sell a car that is on finance, but there are important factors to consider:
- Outstanding Loan Balance: If there is still money owed on the car, you’ll need to pay off the outstanding balance (the settlement figure) before selling it. You can sell the car, but the buyer will not take on the loan—you must settle the debt with your lender first.
- Part Exchange: In some cases, you can part-exchange the car with a dealership. The dealer will pay off the remaining finance as part of the transaction, and any equity left in the car can be used as a deposit for your next car.
- Voluntary Termination: If you’re unable to sell the car but wish to return it, you might be able to use a voluntary termination option, depending on the terms of your finance agreement. This allows you to return the car to the lender, provided you’ve paid at least 50% of the total amount due (including interest, fees, and any balloon payment).
Make sure to check the specific terms of your finance agreement and consult with your lender for guidance.
Can I sell my car privately to pay off finance?
No, it is illegal to privately sell a car with outstanding finance. You don’t fully own the car until the finance is paid off. To sell your car legally, you must first settle any remaining finance that may exist on it.