How do you assume an auto loan?

Answer 1

1. Assuming a Purchased Car
2. Step 1

   Do your homework. Owners who are upside down on their car loan, meaning they owe more than the car is worth, and want to get out of the loan would rather have someone assume their payments than sell their car, take a loss and still have to repay the loan. However, not all lenders allow the purchaser to do this, so it is up to you to make sure this is allowed by checking the car's loan contract or the lender itself.

3. Step 2

   Make sure you get records. Be sure you have a record of all the payments that have already been made, lender information and the loan document.

4. Step 3

   Find out what the payoff balance is.

5. Step 4

   Do the same homework you would do for the lease car, such as running the Carfax, checking the service record and filling out and having both parties sign the paperwork.

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