does a car have to be refinanced to remove me from the loan?

[bpenney]

alabama: I went through a divorce 3 years ago. The car that we owned together was in my name, along with the loan that helped pay for it. I am asking my ex to take my name off of the loan and the car since it's her car. She is okay with this but we are unsure of what needs to be done next. I was under the impression she would have to refinance the car in order to do this, but she says that I can just sign a bill of sale and that it will work that way. I was wondering if I could get some suggestions, she has messed me up before and I don't want to go down that road again. What should I do to ensure that I am free and clear of any obligation to this car/loan, and that it doesn't affect my credit in the future?

 

[Zigner]

alabama: I went through a divorce 3 years ago. The car that we owned together was in my name, along with the loan that helped pay for it. I am asking my ex to take my name off of the loan and the car since it's her car. She is okay with this but we are unsure of what needs to be done next. I was under the impression she would have to refinance the car in order to do this, but she says that I can just sign a bill of sale and that it will work that way. I was wondering if I could get some suggestions, she has messed me up before and I don't want to go down that road again. What should I do to ensure that I am free and clear of any obligation to this car/loan, and that it doesn't affect my credit in the future?

The lender would have to agree to release you from the responsibility for the car. From what I can see, you have a few options to accomplish this.

A: You can pay off the car (sure bet).
B: You can get the car refinanced (sure bet).
C: You can get the lender to agree to remove you from the title and to release you from responsibility for the loan (not a chance in heck without A or B taking place).