Technically yes, but the process is more complicated than simply asking the buyer to pay the monthly amortization. The key issue is who remains legally liable to the bank or financing company.

If you simply hand over the car to a buyer and they agree to continue paying the monthly amortization, you remain primarily liable to the bank. If the buyer stops paying, the bank will go after you, not the buyer, because the loan contract is in your name. Your credit record will suffer, and the bank may repossess the car and still sue you for any deficiency.

A loan assumption requires the bank or financing company’s approval. The process typically involves:

1. Find a qualified buyer — Someone with good credit who can be approved by the bank.
2. Apply for assumption with the bank — Both you and the buyer must submit requirements (income documents, IDs, etc.).
3. Pay transfer fees — The bank may charge an assumption or transfer fee.
4. Sign new loan documents — The buyer signs a new loan contract, and the bank releases you from liability.
5. Transfer the vehicle registration — The LTO registration must be transferred to the buyer’s name.

Without this formal process, you remain on the hook. A private “agreement” between you and the buyer is not binding on the bank.

The common “pasalo” (take-over) arrangement carries significant risks:

• You remain liable — The bank will hold you responsible for missed payments.
• Your credit score suffers — Late payments appear on your credit record.
• Difficult to enforce — If the buyer stops paying, suing them for breach of contract can be costly and time-consuming.
• Insurance complications — The car insurance may not cover accidents if the driver is not the registered owner.