7 Safe and Legal Ways to Take Over a Car Loan, Here Are the Tips!

Looking for a safe and legal way to take over a car loan? Loan takeovers can be a practical solution if you're looking to assume someone else’s car installment plan. or if you're trying to transfer your own ongoing loan.

Although it may sound simple, the process requires caution to avoid disadvantages for both parties. To ensure everything goes smoothly, check out the complete guide below!

What Is a Car Loan Takeover?

A car loan takeover is the process of transferring the responsibility of loan repayment from the original borrower to a new one. In this case, the car is still under financing and not fully paid off, but the responsibility for monthly payments shifts to another person.

This process typically involves three key parties:

• The original car owner (existing borrower)

• The buyer (new borrower)

• The financing institution (leasing company or bank)

Unlike regular used car sales, the car remains as collateral until the loan is fully paid off. That’s why this process needs approval from the financing company to ensure it’s legal and avoids future legal complications.

7 Legal and Safe Ways to Take Over a Car Loan

Taking over a car loan is not something to be done haphazardly. Follow these legal and safe steps:

1. Check the Remaining Car Loan

The first step is to find out how much is left on the loan. Ask the leasing company or current owner for the payment history to ensure there are no overdue payments.

2. Inspect the Car’s Condition

Do a full inspection of the car—check the engine, exterior, interior, and all legal documents like the STNK (registration) and BPKB (ownership book), which are usually held by the lender. Request photocopies of the documents.

Read Also: 8 Easy Ways to Apply for a Car Loan

3. Calculate the Takeover Price

To calculate the car loan takeover cost, add the following:

• Remaining installments

• Down payment previously paid (if agreed upon)

• Administrative fees

Example:

• Remaining installments: Rp60,000,000

•  Initial down payment: Rp20,000,000

• Admin fee: Rp2,000,000

• Total takeover price: Rp82,000,000

This total can then be used as the basis for negotiations.

4. Contact the Leasing Company

Reach out to the leasing company to inform them of your intention to take over the loan. Ask if they officially support loan takeovers, not all lenders allow it.

If allowed, you’ll be asked to provide:

• Loan takeover application form

• Personal documents (ID, salary slips, tax number, etc.)

• Credit check (BI checking)

5. Draft a Legal Agreement with a Notary

Even if the leasing company hasn’t approved the takeover yet, you can create a private agreement between buyer and seller through a notary. This serves as legal proof that both parties have agreed to the takeover terms—including price, payment term, and responsibilities.

6. Pay the Administrative Fees

Leasing companies typically charge an administrative fee, ranging from IDR 1 million to IDR 3 million depending on company policy.

7. Take Over the Installments and Official Documents

Once approved, the buyer begins making payments based on the remaining term and monthly amount. Be sure to store all documents, including the agreement, photocopy of the STNK, and leasing confirmation letters, safely.

Read Also: Car Loans Without Down Payment? Here's How to Do It and the Requirements

Benefits of Taking Over a Car Loan

Taking over someone else’s loan may seem like a burden, but there are real benefits:

1. Lower Price

Cars under loan takeover arrangements are often cheaper than new cars. You only need to pay the remaining installments and agreed down payment.

2. Lighter Monthly Payments

Often, the previous owner has paid off a significant portion of the loan, making the remaining term shorter and the installments lower.

3. Faster Ownership

No need to wait for a new car order, once the takeover is complete, you can drive away almost immediately.

Read Also: 10 Must Know Tips on Buying a Car With Loan

Tips to Ensure a Safe Car Loan Takeover

To avoid legal and financial troubles, follow these key tips:

1. Avoid Under-the-Table Deals

Doing this without involving the leasing company is highly risky. While it might be faster, such transactions have no legal standing and are prone to fraud.

2. Always Use a Notary

Notarized documents protect both parties in case of future disputes. Make sure the agreement outlines rights, obligations, and default consequences.

3. Ensure the Car Has No Legal Issues

Use a vehicle check service or online Samsat service to ensure the car is not under any legal case, ticket, or lien.

Read Also: 7 Requirements for a New Car Loan Application

4. Maintain a Good Credit Score

Leasing companies will assess your ability to pay. Make sure your credit record is in good shape to increase the chance of approval.

Taking over a car loan is a practical way to get a vehicle at a more affordable cost. However, the process must be legal and transparent.

From checking the remaining installments and calculating the takeover price to securing approval from the financing company, every step must be done carefully.

By following these safe ways to take over a car loan, you can avoid legal and financial risks. Always keep all legal documents safe, and if necessary, consult a notary or professional for added security.

Use Toyota Credit Simulation on TAF

If you're considering taking over a car loan or even applying for a new one, don’t skip the crucial step of using a loan simulation tool.

Toyota Astra Finance (TAF) provides an easy and transparent Car Loan Simulation feature. You can estimate your installments based on down payment, term, and the Toyota vehicle of your choice.

This tool is very useful, whether you’re taking over a loan or applying for new financing in a safe, legal way.

Visit TAF now and try the online credit simulation to ensure a smart decision for your car financing needs!