Can You Remove a Cosigner from a Car Loan?

Can you remove a cosigner from a car loan? Yes, removing a cosigner from a car loan is possible in most cases. Whether your relationship with the cosigner has changed or you simply don’t need them anymore, there are plenty of options if you want to remove them from the equation. But, it’s important to think strategically. Find out just how to remove a cosigner from an auto loan without harming your own credit score, and talk with our finance advisors at Automotive Avenues for personalized advice!

What’s the Purpose of a Cosigner on a Loan?

Before we dive into how to remove a cosigner from an auto loan, why do people have cosigners in the first place? Many Toms River and Trenton drivers turn to cosigners due to poor credit history or a high debt-to-income ratio. Adding a second name to your loan acts as a protective shield for your lender since someone can take over the loan if you fail to pay. But, the cosigner also assumes extra responsibility and potential debt. So it’s important to think long and hard!

How to Remove a Cosigner From an Auto Loan

Removing a cosigner from an auto loan is almost always possible, it’s just a matter of how to remove the cosigner from your auto loan. Here are a few strategies to discuss with your lender:

• Refinancing Your Loan – If your credit score has improved over time, you can consider refinancing your loan to get better terms. Then you can refinance solely in your own name, removing the cosigner from your auto loan in the process.
• Cosigner Release – Your contact might have more information about how to remove a cosigner from your car loan in the fine print. Sometimes you’ll find a “cosigner release form” that can release them from the contract immediately.
• Sell the Car and Pay Off Your Loan – While a more drastic measure, you can also sell the car in Howell Township and pay off the loan in full if you’re not underwater on your finances. If you have the means to do so, this will remove your cosigner’s financial obligations – as well as your own!

Get More Car Buying Tips From Automotive Avenues!

Can you remove a cosigner from a car loan in Toms River? Yes, and Automotive Avenues is here to help you learn how to remove a cosigner from your auto loan. Feel free to contact us online with any questions about the process, or just stop by Automotive Avenues in Wall. We’d be happy to chat about all of your options in person.