Sometimes, life can get in the way of your car loan. You might be upgrading, downsizing or offloading your ride to a mate.
Whatever the reason, you might be wondering: Can I transfer my car loan to someone else in Western Australia?
In this article, we’ll answer that question and explore all the options available to you. If you’d like more information, fill out our contact form and a member of our crew will be reach out shortly.
Technically, car loans aren’t designed to be “transferred” from one person to another. Unlike your Netflix password, they’re credit contracts and lenders want to know exactly who they’re lending to.
But whilst you can’t just hand it over and walk away, you do have some options.
In Western Australia, you need to iron out a few important details when you sell a vehicle:
Vehicle licence transfer
Transfer fees and possible stamp duty
A signed buyer and seller declaration
Proof the loan is paid out or written consent from the lender
Some lenders allow what’s called a loan assumption. This is where someone else takes over the repayments and ownership of the car with the lender’s permission.
Whilst a loan assumption sounds like a great option, there are a few things to consider:
It’s not common in Australia
The new person must pass all the same checks you did (credit score, income, etc.)
The lender still gets the final say
If you’re with a flexible lender or bought the car through dealership finance, it’s worth asking – just don’t count on it.
The third option is for the new buyer to apply to refinance the car into their name, using the current vehicle as security. Depending on the lender and how much of the car’s value has already been paid off, this can sometimes be faster than a standard used car loan
There is also the potential that they might get a better rate, especially if your original loan was from a few years back or your own credit wasn’t sparkling at the time. At Loans Unlimited, we have access to over 40 lenders all willing to provide fair and transparent car financing to Western Australians.
In Western Australia, you need to iron out a few important details when you sell a vehicle:
Vehicle licence transfer
Transfer fees and possible stamp duty
A signed buyer and seller declaration
Proof the loan is paid out or written consent from the lender
Letting the buyer of the vehicle make your loan payments isn’t a good idea.
You’re still legally responsible for the loan. If they miss payments, it’s your credit score that cops it and if they drive irresponsibly, you could still be held liable. It might be a more convenient option, but lenders don’t care about handshake deals.
At Loans Unlimited, we know there’s plenty of reasons why you might have to part with your car. Whether you’re moving overseas or swapping a hobby car for a more family friendly option, we’ve seen it all.
If you’ve got a car loan you need to move on from, don’t be afraid to get in touch. We can help you figure out your best option from across 40 flexible lenders. With straightforward and honest advice, we can help you jump ship and find a better solution.
To speak with a member of our Perth crew about car loans or online auto finance, drop your details in our contact form.
