{"id":884060,"date":"2020-10-01T13:08:22","date_gmt":"2020-10-01T17:08:22","guid":{"rendered":"https:\/\/www.finder.com\/ca\/?p=884060"},"modified":"2026-03-09T18:29:14","modified_gmt":"2026-03-09T22:29:14","slug":"transfer-a-car-loan","status":"publish","type":"post","link":"https:\/\/www.finder.com\/ca\/car-loans\/transfer-a-car-loan","title":{"rendered":"How to transfer a car loan to another person in Canada"},"content":{"rendered":"

There are several ways to transfer a car loan to another person for whatever reason, like if someone else wants to pay the loan, you can no longer afford repayments, you want to switch lenders or you want to sell your car. Keep reading to find out how to transfer a car loan in Canada, and learn when you might want to find alternatives to a car finance takeover.<\/p>

Can you transfer a car loan to another person in Canada?<\/h3>

Yes, most lenders in Canada will be willing to work with you to transfer a car loan to another person. Whoever takes over your loan will have to meet the lender\u2019s requirements \u2013 like having a minimum credit score and income \u2013 in order to be approved for the car finance takeover.<\/p>

Also, depending on your original loan contract, you may have limited options or be charged an early repayment fee when you close out your loan.<\/p>

How to transfer a car loan to another person in 7 steps<\/h3>
You can transfer a car loan to anyone who is willing to take over your payments by following these steps:<\/div>
  1. Contact your dealer or lender.<\/strong> Contact your lender to find out if you\u2019re allowed to transfer your car loan to another person, and what this car finance takeover looks like. You can ask about loan transfer options<\/a> like transferring your car loan to someone else\u2019s name, switching lenders or selling your car. They can give you an idea of what paperwork you have to fill out for each option.<\/span><\/li>
  2. Check restrictions on a car loan takeover.<\/strong> Ask your lender about restrictions to transfer a car loan to another person. You may have issues transferring your loan if you\u2019ve missed payments, or if the person you want to transfer to has bad credit or doesn\u2019t meet other eligibility requirements.<\/span><\/li>
  3. Put together the necessary documents.<\/strong> You\u2019ll want to fill out your end of the paperwork in advance so that you can guide your buyer through the loan transfer process. The new buyer will likely need to visit your lender in person so that your lender can witness signatures and set up direct deposit.<\/span><\/li>
  4. Line up your buyer.<\/strong> Line up a buyer to complete the car loan takeover. Most vehicle transfers happen between friends or family members, but you can also advertise your vehicle on a public marketplaces in Canada like Kijiji or Facebook Marketplace to find the right candidate.<\/span><\/li>
  5. Set up meetings with potential buyers.<\/strong> Once you\u2019ve got an interested buyer, you should show them the vehicle and explain the process for how to transfer the car loan. You\u2019ll also want to check that they have a good credit score and proof of income to show that they can make the payments.<\/span><\/li>
  6. Confirm the loan transfer.<\/strong> Go into your lender or dealership with your prospective buyer to complete the car finance takeover. Be sure to double check that your loan has transferred successfully before you allow the new buyer to drive away. This will make sure you\u2019re not held liable for payments or damage to the car in the future.<\/span><\/li>
  7. Update the vehicle\u2019s title registration.<\/strong> When you transfer a car loan to another person, you should also make sure to transfer the ownership of the vehicle. You can do this by going into your local insurance agency to get the car registered and insured under the new owner\u2019s name.<\/span><\/li><\/ol><\/div>

    Sell or trade-in your financed car online<\/h3>
    \n
    \n <\/div>\n
    \n
    \n
    <\/div>
    1 of 1 result<\/span><\/small><\/div><\/div><\/div>
    <\/div>
    \n Max. Vehicle Age\n <\/use><\/svg><\/use><\/svg><\/use><\/svg><\/th>\n Mileage Range\n <\/use><\/svg><\/use><\/svg><\/use><\/svg><\/th>\n Available Provinces\n <\/use><\/svg><\/use><\/svg><\/use><\/svg><\/th>\n Vehicle Payment\n <\/use><\/svg><\/use><\/svg><\/use><\/svg><\/th><\/tr><\/thead>
    \n 2000 or newer\n <\/div><\/td>
    \n Any\n <\/div><\/td>
    \n ON, NS, NB, PE and BC (no trade-in option in BC)\n <\/div><\/td>
    \n eTransfer funds in 1 business day\n <\/div><\/td>
    \n Sell or trade-in your car without the hassle. Upload basic information and get an instant offer. Get the vehicle picked up from your driveway. Available in Ontario and Nova Scotia only.\n <\/div><\/td>
    Go to site<\/a><\/use><\/svg>View details<\/span><\/a>
    Compare product selection<\/legend>
    <\/div>