Bad Credit Agency

Can I transfer my minivan into my parents name even if they have bad credit?

I had bought a minivan for my parents in september of last year. We still owe about 16,000 on the van. We are having trouble transferring it into their name because they both have a credit score in the mid to low 500s. Is there a way to transfer it into their name? They do not mind paying a higher interest rate. I have searched for auto financing loan companies but they usually want you to purchase a vehicle with one of their affiliate dealerships. We already have the minivan and are looking for just a way to get a loan to pay off the first loan and then put it in my parents name. Thanks

Public Comments

1. Your parents would have to apply for credit with a bank to purchase it. Whether they'll be approved or not depends on a couple of factors: 1. Their debt to income ratio 2. The value of the van versus the payoff. The value is affected by the year, make, model, mileage, and condition. Usually, the equity in vehicle loans is upside down as soon as you drive it off the lot because it immediately depreciates as a used vehicle. These circumstances make it really difficult for someone to be able to pull off what you want to do but you may want to check with your current financing company. They may be willing to let them takeover the current loan via an assumption after they run a credit check to determine their credit worthiness. However, you would remain the guarantor so you in essence continue to maintain the liability of the loan. Meaning if they were to default, the finance company comes after you.