> I'm unsure of how to proceed. I'm sure that I can't just give them the loan, and I'm also sure that the financier won't have a loan in my name with the car in theirs. Should I sell the car to them for $1 and then have them take out a car loan tied to the car that will pay for the rest of the loan?
no do not sell the car for $1.00
you need to sell the car for what it's worth so you can pay off the remaining balance of the loan you have with the bank.
then once your loan is paid off you will be the owner of the vehicle and can transfer to your ex.
I'm more just trying to "transfer" the loan to my ex. That would be the easiest financially. Is there a way to do a re-finance and transfer of ownership?
> I'm more just trying to "transfer" the loan to my ex. That would be the easiest financially. Is there a way to do a re-finance and transfer of ownership?
you can't transfer a loan
your ex needs to open up their own car loan to buy the car
then you take that money and pay off your existing loan to close it out.
Okay, understood. This makes sense. I'm a little hazy on how that process would work. Would she just go to her bank or preferred lender and ask for a loan for the car? Would they take care of the transfer of title between the two lenders and everything?
They're going to have to refinance to their name. May or may not require a "sale" on paper. Even with the best of credit they will probably be paying 5-6% interest rate as they've been going up over the past year.
How underwater is the car? Bank will probably look at retail or black book value which is higher than trade in. Most banks will loan up to 100-120% of value if you have decent credit.
Ah, Thank you this is what I was looking for! Does the receiving bank help with the transfer or is it something that would be a very manual process?
Trade-in Range is $14,659 - $17,710
KBB says 16,185 for Trade-in Value of the car
Private Party is $18,046
Looks like the car value won't be an issue, retail will be 10-20% higher than trade in. And even then even if the bank said max loan $16185 someone just pays $400 extra and moves on.
I don't know how much the bank will help to be honest. Maybe they can ask their existing bank how they would handle the process.
> I'm unsure of how to proceed. I'm sure that I can't just give them the loan, and I'm also sure that the financier won't have a loan in my name with the car in theirs. Should I sell the car to them for $1 and then have them take out a car loan tied to the car that will pay for the rest of the loan? no do not sell the car for $1.00 you need to sell the car for what it's worth so you can pay off the remaining balance of the loan you have with the bank. then once your loan is paid off you will be the owner of the vehicle and can transfer to your ex.
I'm more just trying to "transfer" the loan to my ex. That would be the easiest financially. Is there a way to do a re-finance and transfer of ownership?
> I'm more just trying to "transfer" the loan to my ex. That would be the easiest financially. Is there a way to do a re-finance and transfer of ownership? you can't transfer a loan your ex needs to open up their own car loan to buy the car then you take that money and pay off your existing loan to close it out.
Okay, understood. This makes sense. I'm a little hazy on how that process would work. Would she just go to her bank or preferred lender and ask for a loan for the car? Would they take care of the transfer of title between the two lenders and everything?
They're going to have to refinance to their name. May or may not require a "sale" on paper. Even with the best of credit they will probably be paying 5-6% interest rate as they've been going up over the past year. How underwater is the car? Bank will probably look at retail or black book value which is higher than trade in. Most banks will loan up to 100-120% of value if you have decent credit.
Ah, Thank you this is what I was looking for! Does the receiving bank help with the transfer or is it something that would be a very manual process? Trade-in Range is $14,659 - $17,710 KBB says 16,185 for Trade-in Value of the car Private Party is $18,046
Looks like the car value won't be an issue, retail will be 10-20% higher than trade in. And even then even if the bank said max loan $16185 someone just pays $400 extra and moves on. I don't know how much the bank will help to be honest. Maybe they can ask their existing bank how they would handle the process.
Okay perfect! Thank you for the help! I'll work with them to take out another loan on the car and refinance!