Can you have a car loan in one name and title the vehicle in another name?

Answer

The loan originator might frown on that. The entity issuing the loan must be assured that the assignee is reliable. They issued a loan to that person. Placing another name on the title might make a case for fraud. That isn't generally the kind of trouble folks invite, even if there is a logical reason for desiring a different name on the title. If a vehicle is titled under another name, it strips the loan company of some or much of its assurance as to who they can go to in the event repossession is necessary. (They have to think in terms of "what if" to stay in business.) The particulars may be covered in the fine print on a loan contract. It's highly improbable that a loan company would even consider the request. The dealer from whom the title is transferred must abide by the loan agency's wishes since they'll be handling the paperwork and must represent the loan company (as well as the buyer) fairly. That dealer won't probably want to dance around a possible fraud issue. If a loan is granted for a private party sale, the loaning agency will take care of the paperwork and title will go to the assignee of the loan. (The latter might be the case when a credit union appraises a vehicle for sale from a private party and grants a loan to a member to purchase that unit.) As always, good luck.

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