Can I transfer a car loan to a family member?

[TheCarMadDad]

Soooo, I have a car with outstanding finance on it. I have some equity in it and could sell it for more than the finance left to pay. However, A family member is in need of a new car so I'm happy for her to take over the finance from me (if possible)

So that's my question really, Can I call the finance company (Toyota Financial Services) and tell them someone else would like to take responsibility for the loan? I understand she would get credit checked etc, but at the minute it is with payments she can afford and is a lot of car for what is left to pay. It would be ideal for her.

Thanks in advance

[TurboBlue]

Seems very complicated and I'd expect the answer from Toyota would be 'no' but why doesn't the family member just arrange a bank loan - lots of good deals around 4.5% currently - and buy the car from you. You can repay the finance agreement and have cash left over?

[TheCarMadDad]

Seems complicated but it really is straight forward. I don't think a bank loan could match the rate that I got with Toyota (2.9%)

[E30M3SE]

TheCarMadDad said:

Soooo, I have a car with outstanding finance on it. I have some equity in it and could sell it for more than the finance left to pay. However, A family member is in need of a new car so I'm happy for her to take over the finance from me (if possible)

So that's my question really, Can I call the finance company (Toyota Financial Services) and tell them someone else would like to take responsibility for the loan? I understand she would get credit checked etc, but at the minute it is with payments she can afford and is a lot of car for what is left to pay. It would be ideal for her.

Thanks in advance

No.

[2222]

E30M3SE said:

TheCarMadDad said:

Soooo, I have a car with outstanding finance on it. I have some equity in it and could sell it for more than the finance left to pay. However, A family member is in need of a new car so I'm happy for her to take over the finance from me (if possible)

So that's my question really, Can I call the finance company (Toyota Financial Services) and tell them someone else would like to take responsibility for the loan? I understand she would get credit checked etc, but at the minute it is with payments she can afford and is a lot of car for what is left to pay. It would be ideal for her.

Thanks in advance

No.

Why?

[berlintaxi]

2222 said:

E30M3SE said:

TheCarMadDad said:

Soooo, I have a car with outstanding finance on it. I have some equity in it and could sell it for more than the finance left to pay. However, A family member is in need of a new car so I'm happy for her to take over the finance from me (if possible)

So that's my question really, Can I call the finance company (Toyota Financial Services) and tell them someone else would like to take responsibility for the loan? I understand she would get credit checked etc, but at the minute it is with payments she can afford and is a lot of car for what is left to pay. It would be ideal for her.

Thanks in advance

No.

Why?

Why would they, the loan has been underwritten based on the original applicant why would they go to the trouble of carrying out credit checks, underwriting etc? Get a bank loan and settle the finance.

[TheCarMadDad]

I don't need a bank loan to settle the finance. I was only looking at all options

[GoneAnon]

TheCarMadDad said:

Seems complicated but it really is straight forward. I don't think a bank loan could match the rate that I got with Toyota (2.9%)

In the real world, what £ note difference does the gap from 2.9% to 4.5% actually make?
Then compare it to the cost of a new arrangement fee IF Toyota were willing to transfer the debt.

[dave_s13]

She just needs to pay you the value of the remaining finance. Even doing this with a personal loan sees her in a better position than she would be without your offer.

Ring Toyota finance and ask them, rather than arguing on here.

[anonymous-user]

There's only one way to find out....

[Davie_GLA]

Why not arrange for her to send on the payments every month?

[Stuperbulous]

It's a regulated agreement between Toyota financial services and you. technically the car is not yours to decide who takes over payments. For a regulated agreement to take place it needs to be organised through an authorised agent at authorised site. I.E. a Toyota dealership.

It would be much simpler for you to settle the current balance and she takes out a personal loan, or if they're good monthly payments send her to the Toyota dealer you bought the car from so they could set up a similar deal on a similar car. She may even get a better deal, and you could use the positive equity in your current car.

[2222]

berlintaxi said:

2222 said:

E30M3SE said:

TheCarMadDad said:

Soooo, I have a car with outstanding finance on it. I have some equity in it and could sell it for more than the finance left to pay. However, A family member is in need of a new car so I'm happy for her to take over the finance from me (if possible)

So that's my question really, Can I call the finance company (Toyota Financial Services) and tell them someone else would like to take responsibility for the loan? I understand she would get credit checked etc, but at the minute it is with payments she can afford and is a lot of car for what is left to pay. It would be ideal for her.

Thanks in advance

No.

Why?

Why would they, the loan has been underwritten based on the original applicant why would they go to the trouble of carrying out credit checks, underwriting etc? Get a bank loan and settle the finance.

I've done it.
Mate had a jeep on HP, he had paid enough to hand back and walk away from it.
I took over the finance as it was worked out as a cheap rental.
black horse were happy as they got an extra 12 months pavement before it was sent to auction.

Go figure

[E30M3SE]

2222 said:

berlintaxi said:

2222 said:

E30M3SE said:

TheCarMadDad said:

Soooo, I have a car with outstanding finance on it. I have some equity in it and could sell it for more than the finance left to pay. However, A family member is in need of a new car so I'm happy for her to take over the finance from me (if possible)

So that's my question really, Can I call the finance company (Toyota Financial Services) and tell them someone else would like to take responsibility for the loan? I understand she would get credit checked etc, but at the minute it is with payments she can afford and is a lot of car for what is left to pay. It would be ideal for her.

Thanks in advance

No.

Why?

Why would they, the loan has been underwritten based on the original applicant why would they go to the trouble of carrying out credit checks, underwriting etc? Get a bank loan and settle the finance.

I've done it.
Mate had a jeep onHP, he had paid enough to hand back and walk away from it.
I took over the finance as it was worked out as a cheap rental.
black horse were happy as they got an extra 12 months pavement before it was sent to auction.

Go figure

Why was it sent to auction if it was on an HP agreement?

When I was a BM at a Toyota dealer, TFS would not transfer Regulated HP agreements.

Maybe the OP should ring TFS and ask them and report back on thier reply, VW Finance won't either.

Edited by E30M3SE on Saturday 7th June 17:40

[TheCarMadDad]

Thanks for the replies.

Turns out I couldn't do it that way. I was just causing more aggro for myself that way anyway. I paid the finance off and sold it her at mates rates, she got a loan from the bank with similar repayments.

Cheers guys