This can happen due to various reasons, such as a divorce or a family member passing away. In this article, we’ll discuss if it is possible to change the name on a car finance agreement and how to go about it.
Understanding Car Finance Agreements
Before we delve into the question of changing the name on a car finance agreement, it is important to understand what it is. A car finance agreement is a legal contract between you and a finance company or a dealership. The agreement outlines the terms of your car loan, including the amount of money you will borrow, the repayment period, and the interest rate. Once you sign the agreement, you agree to make regular payments until the loan is paid off in full.
Can You Change The Name On A Car Finance Agreement?
The short answer is no – you cannot change the name on a car finance agreement. Once you sign the agreement, it is a legally binding contract between you and the lender. The lender agreed to lend you money based on your credit history, income, and other factors. If you want to change the name on the agreement, it would require a new contract and a new credit check.
However, this does not mean that it is impossible to change the ownership of the car. You can transfer ownership of the vehicle to someone else. But, in doing so, you would still be responsible for the car finance agreement. The new owner would need to make the payments as agreed upon in the contract. If the new owner is unable to make the payments, you would still be liable for them.
What Options Do You Have?
If you need to change the name on your car finance agreement, there are a few options available to you.
Refinance The Car
If you want to change the name on your car finance agreement, you can refinance the car. This means that you would apply for a new loan with a different lender, and they would pay off your existing car loan. You would then have a new car finance agreement with the new lender. However, you would need to have a good credit score and income to qualify for a refinance.
Sell The Car
Another option is to sell the car and pay off the existing loan. If you sell the car for more than what you owe on the loan, you can use the extra money to pay off the loan. If you sell the car for less than what you owe, you will need to make up the difference out of your own pocket. Once the loan is paid off, you can transfer ownership of the car to the new owner.
Negotiate With The Lender
If you have a valid reason for wanting to change the name on your car finance agreement, you can negotiate with the lender. For example, if you are getting a divorce and your ex-spouse wants to keep the car, you can ask the lender to transfer the loan to their name. However, this is not always possible, and the lender may require a new credit check and contract.
Conclusion
In summary, you cannot change the name on a car finance agreement once you have signed it. However, you can transfer ownership of the car to someone else. If you need to change the name on the agreement, you can refinance the car, sell the car and pay off the loan, or negotiate with the lender. It is essential to consider all your options carefully and consult with a financial expert before making any decisions.
