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Discussion Starter #1
Do any of you know how to go about transferring the 0% financing to a person that purchases your vehicle?

I'm sure there is a minimum FICO/credit score requirement.

Is it true I would do this at a dealership?


I sent an email to toyota financial and they said I needed to call customer service. So I called the phone number they gave me only to find there were no options in the call tree to address this issue, so I hit #3 which was for address changes but that was the only option that I knew would give me a live person.

The live person answers with "I have no idea." Then proceeds to talk on the phone as if she was a 13 year old girl; very muffled and inarticulate. She said that I would need to go to a dealership payoff the old loan then have credit run for the new person for approval. I said "so it is possible thanks, that's all I needed to know."
 

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It is doubtful that you will be able to transfer your 0% loan to anyone else. The person wanting to buy your vehicle will need to go to his lending institution and apply for a new loan in the amount of your selling price, which of course will include the payoff of your vehicle. Lending institutions almost never allow another party to assume an existing loan when buying a vehicle. The only exception would possibly be if you were in danger of having the vehicle repossed and the new purchaser was stronger financially. I say this after working for several years lending money on vehicles for both dealers and individual sellers.
 

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Agree don't think the loans are transferable. Read your loan paper work it will be in there, in the legalese
 

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You have exactly 0% chance of being able to transfer the loan. The buyer or "transferee" will have to refinance the vehicle.
 

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You have exactly 0% chance of being able to transfer the loan. The buyer or "transferee" will have to refinance the vehicle.
great way to put it. and it really wouldnt matter if it was 0 percent or 18 percent...u cant just transfer a loan like that...they have to finance it at whatever rate they qualify at unless u keep it in your name and let them make payments etc...i.e. those take over payments type of car deals that get people in huge credit issues...
 

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Yep, agree with all; it just doesn't work that way. I am suprised you got a live human being (talking to you in the U.S.) to respond.
 

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ooooppppssss. Typo-----surprised.
 

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Just Call Me Hank
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Do any of you know how to go about transferring the 0% financing to a person that purchases your vehicle?

I'm sure there is a minimum FICO/credit score requirement.

Is it true I would do this at a dealership?


I sent an email to toyota financial and they said I needed to call customer service. So I called the phone number they gave me only to find there were no options in the call tree to address this issue, so I hit #3 which was for address changes but that was the only option that I knew would give me a live person.

The live person answers with "I have no idea." Then proceeds to talk on the phone as if she was a 13 year old girl; very muffled and inarticulate. She said that I would need to go to a dealership payoff the old loan then have credit run for the new person for approval. I said "so it is possible thanks, that's all I needed to know."
I was told the loan is transferrable "assumable", my brother-in-law has the 0% from Toyota and was thinking of selling it at one time so he ask Toyota and they told him it was transferrable to a qualified person. I didn't ask for details just found the info interesting.
 

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I was under the impression as well that they were transferable as long as the transferee had a high enough credit score. I had a different experience with TFS, I had someone assume a lease through them. The new owner just had to meet the credit score and income levels and it was a done deal. I have always had good luck dealing with TFS. I thought when I talked with them back then, they told me you could do it on a loan as well as long as they met the criteria. Just like Tankerhank said, they used the term assumable instead of transfer.

Bill
 

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Agree don't think the loans are transferable. Read your loan paper work it will be in there, in the legalese
I just read through my finance contract (the long, yellow form, which I think is standard) and the closest it gets to addressing the issue of transfering the contract is Paragraph 2(b) on the back side: "You agree not to .... sell, rent, lease, or transfer any interest in the vehicle or this contract without our written permission..."

If you break that promise, then Paragraph 3 comes into play ("If You Pay Late or Break Other Promises"), including part (b): "You may have to pay all you owe at once .... "

So, legally speaking, when you signed the contract, you promised that you would not assign (transfer) the contract to a third party (i.e non-signatory to the contract), unless you get their written permission first. A previous post already provided the odds on that occurring.

Disclaimer: I am not a lawyer, but I did stay at a Holiday Express last night.
 

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Transferring loans is a myth ... if it doesn't specifically say that you can do this on the loan contract it cannot be done, period ... these are contactual agreements and you must follow the contract itself to the letter.

Sort of like the 3 day rule that alot of people think they have to return a vehicle if they don't like it, (3 day rule is if someone comes to your "door" and sells you encyclopedia's or something, its called a "3 day cooling off period")

Besides the fact even if the person would qualify for the loan, Toyota would deem this is a used vehicle and would not qualify for a 0% loan, the 0% loans are subsidized by Toyota to move "NEW" vehicles, no way are they going take a loss to sell a vehicle they do not own to help out a 3rd party at a loss to them on subsidizing a used vehicle, using their own vehicle financing, however I am sure they would love to finance one at a used rate because the Toyota dealer would get a few points, aka cash for doing so.
 

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Besides the fact even if the person would qualify for the loan, Toyota would deem this is a used vehicle and would not qualify for a 0% loan, the 0% loans are subsidized by Toyota to move "NEW" vehicles, no way are they going take a loss to sell a vehicle they do not own to help out a 3rd party at a loss to them on subsidizing a used vehicle, using their own vehicle financing, however I am sure they would love to finance one at a used rate because the Toyota dealer would get a few points, aka cash for doing so.

Spot on. I returned back to this thread to write exactly that.
 

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It doesn't work for homes nor for vehicles. The simple fact is that the lien-holder created a contract with a specific buyer based on the market conditions and lending credentials available at that time. Though you may be able to get 0% financing, it would be independent of whatever deal the original owner received. Anybody that tells you otherwise is trying to sucker you in; basically a bait-and-switch. Be careful; see what you can get in the market otherwise.
The only alternative is to keep the loan in the original owner's name and make their payments for them, but that is a very tricky arrangement; especially with regard to insurance and liability. That is why it is almost never done. Good luck!
 

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Discussion Starter #16
I was told the loan is transferrable "assumable", my brother-in-law has the 0% from Toyota and was thinking of selling it at one time so he ask Toyota and they told him it was transferrable to a qualified person. I didn't ask for details just found the info interesting.

Exactly.

I realize they would have to qualify just as I had to qualify. At the time I believe the min FICO was 720, now it's probably 760.

I thank you all for your input. I think the majority said no. Perhaps Toyota would make it a yes if I bought a prius.
 

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Just Call Me Hank
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Many home mortgages are assumable, even today, with those little words - with approval of a qualified buyer. What they are not anymore is assumable without qualifying which is from a time long long ago on a far off distant planet. :rolleyes:
 
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