PriceProtect™
DriveShield™
GarageGuard™
Services
Insurance
Car Insurance
Compare Car Insurance with Jerry
Jerry’s Expert Advice
Car Insurance Estimates
Home & Renters Insurance
Renters Insurance
Repairs
Car Repair Estimates
Repair Estimates for Popular Services
Advice
Read Car Content
Browse Jerry Car Advice
Check Out Expert Car QnA
Learn About How We Create Content
Jerry Data & Research
How can I take over car loan payments for someone else?
My friend recently lost his job and can't afford his car payment. Trying to help him out, I offered to take over his car loan. How can I take over car loan payments for someone else?
Eric Schad · Updated on
Reviewed by Shannon Martin, Licensed Insurance Agent.
You have several options to consider for taking over a car loan for someone else:
Transfer the car loan: Yes, you can
transfer a car loan
to someone else. But to do this, they also have to transfer ownership of the vehicle to you—and they may not want to give up ownership of their vehicle.Refinance the car: The person could
refinance the car
on their own or by adding you as a cosigner. This could result in a lower monthly payment. But remember that you would assume financial liability for the loan by co-signing.Provide money for the payments: You could also give the person some money to pay their existing car loan each month. Keep track of what you pay and ask that they pay you back. To make it official, you could have them sign a promissory note, which is essentially a legally binding IOU.
Sell the car: The last option is for your friend to
sell the car
. But again, they may not be willing to do this.Regardless of which option you choose, make sure that your expectations of each other are clear and that you’re comfortable with any financial responsibilities you do (or don’t) decide to take on.
View full answer
- Gregory R.
WHY YOU CAN TRUST JERRY
Jerry partners with more than 50 insurance companies, but our content is independently researched, written, and fact-checked by our team of editors and agents. We aren’t paid for reviews or other content.
Join 4M+ members in lowering their car insurance
You Might Also Be Interested
Read Advice From Car Experts At Jerry
What Others Are Asking
Browse More Content
Insurance in Your State
Easiest way to compare and buy car insurance
No long forms
No spam or unwanted phone calls
Quotes from top insurance companies