If your co-signer wants to get out of the car loan


If you co-signed someone on your car loan but they want to get out now, you may be able to refinance them and remove them from the loan. Or you could sell the vehicle as that will also remove a co-signer.

Remove a co-signer from a car loan

A co-signer could opt out of a car loan for a number of reasons. If they originally agreed to take care of your car payments in the event you can’t, but have now lost income or are unable to pay, they may want to relinquish responsibility to avoid problems later.

Whatever the reason, the The easiest way to remove a co-signer is to refinance the car loan. That is, if you want to keep your current vehicle.

Refinancing replaces your current car loan with a new one. If you can qualify for the loan yourself, you can remove the co-signer when you refinance. Most borrowers refinance to lower their monthly payments, but you can also remove a co-signer or co-borrower.

How do I refinance a car loan?

Borrowers who have co-signers usually need them because their credit rating is too low to qualify for an auto loan on their own. However, after some time and making car payments, borrowers with bad credit can improve their credit score.

Your Credit score doesn’t have to be great to refinance, but it must have seen an improvement. If your credit score is better than it was when you first got into the vehicle, then you’re one step closer to qualifying for refinance.

While lenders vary in their specific refinancing requirements, rest assured that your lender will require these basic guidelines:

  • You have had the loan for at least a year
  • Your payments are current
  • You have equity or the value of the car is equal to your loan amount
  • Your vehicle has less than 100,000 miles and is less than 10 years old
  • Your loan amount must meet the lender’s requirements (cannot be too large or too small)

The lender you apply to may also have different terms and conditions for refinancing.

To refinance your car loan, you need to find a lender. You may be able to work with the lender you originally financed the car through, or you may be able to find another. Most borrowers who refinance are looking for another lender so they can evaluate the store to look for the best deal they can qualify for.

When you’re ready to take the next step and remove your co-signer from the car loan, click here. Our trusted partner allows you to view and compare refinancing offers online and can search for one that suits you.

Sell ​​and remove the cosigner

If you think refinancing is not the right move for you, it may be time to sell the vehicle. Selling the car is also a way to get the co-signer out of the car loan – if you don’t have the loan, the co-signer isn’t tied to anything.

You also do not need to have the co-signer present if you are selling the vehicle as his name was never on the title. Although you should at least let them know you’re selling the car they co-signed for!

Even if a co-signer helped you get a car loan, your credit history may still not be the best. If you don’t have a co-signer and have bad credit but need another vehicle, look at subprime auto loans.

Subprime lenders work through a merchant’s dedicated finance department and look at more than just your credit score. Generally, this includes looking at your income, livelihood, credit reports, and asking for a down payment.

Finding these lenders is the tricky part, but we want to help with that! Here, at Auto Loan Expresswe have built a nationwide network of dealers who are subprime lenders. Get started now by filling out our free form Auto loan application formand we’ll get to work for you right away.

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