I’m wondering if a Buy Here, Pay Here (BHPH) loan can be transferred to someone else. Are there specific requirements or procedures typically involved in this process? Any insights or experiences would be helpful.
I’ve heard a few stories where someone managed to sort something like that out, but it’s pretty rare. Usually, the terms in a BHPH deal are pretty strict because the lender takes on a lot of risk. In my experience, it typically won’t be as simple as handing the keys over to someone else; the dealership or lender usually requires a full credit check and might just see it as a new loan. So unless the terms specifically allow a transfer or the lender decides to work with you, it’s generally a tough sell. It definitely depends on the dealership’s policies and how flexible they are.
Transferring a BHPH loan isn’t common practice. Most of the time these loans are non-assumable because the dealer assumes a higher risk profile with buyers in the BHPH environment. Even if you find a party willing to take over the payments, the paperwork almost always requires that the lender re-qualify the new buyer, running them through a credit check or providing additional collateral. Essentially, you’re looking at closing the original loan and setting up a fresh one rather than a straightforward transfer. It ends up costing more, and not every dealer is willing to go through that process.
From what I’ve seen and heard, it doesn’t seem like you can just hand off a BHPH loan to someone else. Most dealers structure these deals with the buyer’s risk profile in mind, so they’re not usually open to passing that risk on without essentially starting a new loan process. I know some stories where people found a workaround, but it usually meant that the dealer had to requalify the new buyer anyway, and the deal was basically just rewritten. So if you’re looking into this, it might be more about negotiating a new loan rather than transferring an existing one, and that really depends on the dealer’s policies.
I followed the BHPH market for a while, and transferring such a loan really seems like an exception rather than the norm. Most dealers are pretty careful about who sits behind the wheel, especially given the current landscape with rising interest rates making lenders more cautious. Although I’ve seen a few discussions online hinting at creative workarounds, it’s more common to see a deal restructured as a completely new loan rather than a true transfer of the existing terms. With tighter regulations and risk assessments nowadays, most lenders will insist on requalifying the new buyer. It might seem like you’re just swapping names, but in practice, it’s really a fresh start on paper. 
Direct transfers of a BHPH loan are uncommon because the entire structure is based on the original buyer’s risk profile. In practice, even if a new buyer with a stronger credit history is interested, you’ll face a process nearly identical to starting a new loan. The dealer or lender typically requires updated credit checks, collateral verification, and sometimes offers a new interest rate to account for risk reassessment. So while there might be isolated cases where a transfer seems possible, in most practical scenarios, you’ll be setting up a new account rather than simply transferring existing terms.