Car-loan swap unlikely

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Dear Terry,
My mom has a car with an upside down loan. After reading your articles, we know what we are up against, which is to turn it back in or keep paying until she owes nothing more. Are there ways to maybe swap loans as they do with leases on cars? Her loan is for $15,000. She has 45 months remaining on the loan.
— Mike P

Dear Mike,
I’m not aware of any agencies that swap car loans. The biggest hurdle is that car loans are not usually assumable and require a new loan in order to change ownership.

Some people do an under-the-table deal in which they give the car to a new owner on the condition that the new owner keeps making the payments. But such arrangements are usually illegal and almost always end in financial disaster for either the seller or the buyer.