How do I transfer responsability of a vehicle to another person?

Question

I sold a vehicle to my stepson, I want to put all driving responsabilities of the vehicle under his name, the problem is that the vehicle is still being paid to the bank, so the loan is still under my name, what I want to do is put him as a driver so he can use it. The loan would still be under my name. I heard I need to write a letter and have a power of Attorney sign it, does anyone ever write a letter similar to this? What information does the letter need to contain in it?

I tried getting a form from the DMV, but they say It can't be done because the vehicle is still being paid to the bank, it's very difficult to put the loan in someone else's name, the bank would have to approve the buyer's credit.

Answer 1

You do the transfer, by signing the title over to them.

See, the problem is, you legally don't have the title - the bank does - so you can't sell the car. The bank won't release the title until the loan is paid off.

You can see if they would refinance the loan to him, with you as a cosigner - but if he defaults, he still owns the car, and you still owe the loan.

You can't transfer responsibility, without transferring ownership. And you can't transfer ownership without the help and consent of the bank, because you don't fully OWN the car.

Answer 2

How old is he?
Many years ago I had a Truck financed with the bank. My brother needed the truck. We just went to the bank and told what we were doing and I signed the back of the title over to him. I was still technically responsible for the loan as it was in my name. But, it was an easy way and my brother did make payments. Then the bank mailed him the title.

He get a loan in his name.

You may be able to make a contract and have it notarized, but, as far as the bank concern your name is what on the loan. The contract should relieve you of all responsibility, but, need a lawyer I would guess to draw it up legal.
This all I know for sure.