I received a loan to pay for a vehicle that I was purchasing and I let my friend drive my vehicle and he was in an accident and did some damage to my truck. It's enough for me to not want the vehicle and he says he will be glad to take the loan over and continue to pay it out. What I need to know if a loan can work like that, just go to my bank and tell them to give my old loan to him and let me have another for the same amount so i can repurchase another car? Would this be a situation where my friend would have to get a loan on his own to pay mine off and then i reapply for another loan after that? Any advice at all would be wonderful, thank you.

Ann:

If your vehicle was in an accident and you have a loan against it, I expect that you also have insurance on it. My first instinct would be to make a claim against the insurance company and ask your friend to pay the deductible.

The lender could in theory do something like what you describe, but it is out of the ordinary and you will find some resistance to it.

Good luck

PS: someone is going to have to take the hit on the damage, and if the damage is big enough I can see the lender having a problem with the transfer without a repair first.