Automobile lenders do not approve of contracts between buyers and sellers to take over car loan payments, and therefore, loan application paperwork must be submitted to a bank or lender, as noted by Autos.com. Anyone wishing to take over car payments from a registered owner must buy the vehicle.Continue Reading
The only remedy for making car payments on another person's vehicle is to go through the steps of purchasing the car, which involves making arrangements to apply for a separate car loan from the original lender, as stated by Autos.com. Loan approval is subject to meeting all requirements to receive a car loan from that lender. Typically, the bank or financial institution requires a used-car buyer to have passable credit to receive a loan, and the vehicle in question can be used as collateral as part of the loan application process. Upon approval, the lender pays off the old car note, and the new owner makes monthly payments on the current car loan.
The seller of the car must go to the state Department of Motor Vehicles and submit transfer of ownership paperwork, which legally transfers the car title to the new owner, notes Autotrader.com. Documentation included in a car ownership transfer may include a vehicle warranty, odometer disclosure and a written statement that the buyer accepts the car in as-is condition.Learn more about Car Makes & Models