Car Loan Transfer Costs: Fees and Other Expenses

Ask your lender whether it permits another person to assume your existing loan, what fee it charges, and whether the new borrower must qualify for approval. Some lenders do not allow loan assumptions, so “transferring” the loan may instead mean paying off your balance with funds from a new loan in the other person’s name.

Moving the car into another person’s name can involve title-transfer, registration, or other government charges that vary by location and transaction. Ask your motor vehicle agency what applies before you agree on who will pay, and make sure the buyer can obtain any insurance required before the handover.

If the other person needs a new loan, compare its interest rate, loan term, and total repayment amount with your current loan rather than focusing only on upfront charges. A longer term may lower the monthly payment while increasing interest paid over time, and a remaining balance greater than the car’s value may complicate the payoff.

Request a current payoff amount from your lender, ask for an itemized list of any transfer-related charges, and confirm when your obligation on the loan will end. Our A Clear Guide to Transferring a Car Loan eBook is a step-by-step resource for working through the process from lender approval to handover; your lender and local motor vehicle agency can give you the amounts for your transaction.