1. Contact Your Lender:
- Inform your lender of your intention to transfer the car ownership and the car loan to another person. They'll provide you with specific instructions and the requirements for the transfer.
2. Get the Buyer's Information:
- Obtain the buyer's personal information, including name, address, contact details, driver's license information, and credit history.
3. Prepare a Written Agreement (Bill of Sale):
- Create a comprehensive Bill of Sale that outlines the transfer of the car, purchase price (if applicable), terms of the loan transfer, repayment responsibilities, and liabilities.
- Include details such as the vehicle's VIN, make, model, year, and current mileage.
- Both you and the buyer should sign the agreement.
4. Contact your insurance company:
- Notify your insurance company about the change of ownership so they can transfer the policy.
5. Transfer the Vehicle Title:
- Follow your local Department of Motor Vehicles (DMV) requirements to transfer the vehicle title from your name to the buyer's name.
- Depending on your state, there may be fees and forms involved.
5. Transfer the Loan:
- Work with your lender to facilitate the loan transfer. This usually involves the buyer submitting a loan application and meeting the lender's approval criteria, including a credit check.
- The buyer will typically assume responsibility for making the remaining loan payments and will enter into a new loan agreement with the lender.
6. Update Registration:
- Register the vehicle under the buyer's name by visiting the DMV. Bring all necessary documents including the updated title, registration forms, bill of sale, proof of insurance, and relevant fees.
7. Finalize the Financial Transaction:
- If there's an agreed-upon purchase price for the car (in addition to the loan), ensure that payment is completed as per the terms you specified in the written agreement.
