Yes, you can transfer a financed car to someone else, but you cannot use a platform like Swapalease, which is exclusively for vehicle leases. The process for a financed car is called a loan assumption, and it's fundamentally different and more complex. Your first step is to contact your lender to see if they even permit it, as many auto loans have a due-on-sale clause that requires the full loan balance to be paid off before the title can be transferred.
The primary challenge is finding a buyer with credit strong enough to qualify with your lender. The lender will run a full credit check on the new buyer, and if approved, they will assume responsibility for the remaining payments. Until the loan is officially assumed, you are still legally liable for the debt. If the new buyer defaults, it will damage your credit score.
Because of these hurdles, many people find that selling the car privately is a more straightforward option. You would use the sale proceeds to pay off the loan directly. If the car is worth less than the loan balance (known as being upside-down), you'll need to cover the difference out of pocket.
| Aspect | Lease Transfer (e.g., Swapalease) | Loan Assumption (for a Financed Car) |
|---|
| Platform Used | Swapalease, LeaseTrader, etc. | Not typically done on major platforms; handled directly with lender. |
| Commonality | Very common and relatively streamlined. | Much less common; many lenders prohibit it. |
| Lender Approval | Lessor (e.g., Honda Financial) must approve the new lessee's credit. | Lender (e.g., your bank) must approve the new borrower's credit. |
| Original Party Liability | Often released after transfer is approved. | You remain liable unless the contract is formally novated (rare). |
| Primary Challenge | Finding a qualified person to take over the lease. | Lender's policies and the new borrower's creditworthiness. |
| Best For | Getting out of a lease early with minimal cost. | Situations where the lender explicitly allows and facilitates it. |
