Can I Transfer My Car Finance To Another Person?

There are several reasons you may be considering transferring your car finance to another person.

It could be you are struggling to maintain your current payments, or you may want to sell the car to somebody else 💵

However, it's essential to know that you can't simply transfer your car finance to another driver.

Here, we’ll guide you through what you can do if you’re struggling to meet your current payments, or you want to transfer them over.

Get the Best Advice from the Lender

If you’re struggling to make the monthly repayments, it may be possible to let a friend or family member help you out. Talk to the lender so that they can advise you on what to do. 

Or perhaps you know someone who needs your help with their car finance payments and you’re willing to lend a hand.

It’s important to understand the responsibilities you’re going to assume if you’re the one paying the lender for the other person’s loan.

While the car loan cannot be transferred over, the lender may be willing to let somebody else pay for a set amount of time.

Be Upfront in Your Car Finance Application

Applying for car finance on behalf of someone else, especially if they couldn't qualify on their own, is known as “fronting”. It is illegal to get car finance for another person this way.

You should always be honest and clear about your intentions when trying to secure car finance.

There’s no need to risk stepping into illegal territory - especially when there are lenders who are willing to work with people who have poor or limited credit histories.

For example, parents can often secure car finance for their children by acting as a guarantor.

Many lenders give you the option to include another person on the application who can financially vouch for the primary borrower.

This is a straightforward and legal approach to securing favourable car finance rates.

What are Guarantors and What’s Their Role?

A guarantor is like a backup for the borrower. If the person borrowing the money finds themselves unable to make the payments, the guarantor steps in to help.

This is particularly helpful for those who find it difficult to get car finance due to a poor credit history or limited financial background.

Let’s say a parent acts as a guarantor for their child who’s buying their first car. If the child can’t make the payments for any reason, the parent steps in.

This ensures the lender doesn’t lose money, making them feel more comfortable giving the borrower the car finance they need.

Settle Your Outstanding Debts

If you want to transfer the car loan to somebody else, you’ll first need to settle any outstanding debt.

Once you have cleared the existing debt, you can set up a new car finance agreement. This time the application can be filed under the name of the person you want to transfer it to.

During this stage, maintaining clear communication with all parties involved is crucial. It helps navigate any potential roadblocks and fosters an environment of transparency and trust.

By meticulously addressing the financial details and keeping everyone in the loop, you pave the way for a hassle-free transition.


So, you can't directly transfer car finance to someone else, but that doesn’t mean you’re stuck!

If you’re having trouble making the repayments, talking to your lender can make a difference. They’re there to help you figure out what can be done and point you in the right direction.

Another practical option is paying off what’s left of the debt. Once that’s sorted, a new car finance agreement can be set up, but this time, under the name of the other person.

If you’re looking for a flexible car finance deal, we may be able to help.

You can increase, decrease, or make additional payments towards your hire purchase agreement at any time.

Download the app to know if you can get car financing with us. It will only take a few minutes to enter your information and verify your identity!

We process everything online, so you don’t need to wait long to know if you can get your car with Carmoola. 😀

Want to know more about our car finance deals? Reach out! We’ll be glad to discuss it with you. 👍

Read more about transferring car finance:


FAQs About Transferring Car Finance to Another Person:

Can I change my car finance to another name?

No, you can't change your car finance to another name directly. However, there are options like settling the debt and having the other person apply for a new agreement.

Can I change ownership of a car on finance?

Changing ownership of a car on finance is tricky since the finance company technically owns the car until the finance is fully paid off.

Can My Partner Take Over my Car Finance?

Directly transferring car finance isn't possible so your partner won’t be able to take over your agreement.