Can You Remove a Cosigner from a Car Loan?

Are you ready for a change of scenery in your Hudson garage? Afraid your one bad loan will affect your ability to get auto financing for a brand new or slightly used Chevrolet for your Saugerties drives? You might need a cosigner to land that loan. However, once you determine you can handle the auto loan payments on your own, you may wonder, “Can you remove a cosigner from a car loan?”

The short answer is yes! Find out everything you need to know about how to remove a cosigner from a car loan from our finance team at Sawyer Chevrolet, Inc. in Catskill.

Can You Remove a Cosigner from a Car Loan After Your Purchase? 

Yes, removing a cosigner from an auto loan is possible. However, you must pay attention to the paperwork and the loan terms. Before you sign the financing agreement, ask the auto finance expert for those details and the person will point out those stipulations. However, the answer is usually yes! Restrictions and options vary from lender to lender. Most auto lenders working with Windham dealerships offer ways for you to adjust your loan or contract after you purchase your vehicle, so look into that, too.

How to Remove a Cosigner from an Auto Loan 

Not sure how to remove a cosigner from a car loan? Lenders almost always have a way to do this. Communication is the key! Contact your lender by phone and talk to a customer service specialist before anything else.

Discuss the following options with your lender when removing a cosigner from an auto loan.

Refinancing Your Auto Loan

Refinancing an auto loan means you work out new terms with the same lender or a new auto loan company. If you can refinance your auto loan by yourself, your cosigner’s name won’t have to be on the new loan. You could even score a better interest rate because you’ve been on time with payments for your auto loan to this point. Try this option if your creditworthiness has improved.

Cosigner Release

Go over the fine print of your initial loan contract. See if there’s a cosigner release option! Some loans will let you remove the cosigner’s name and eliminate their risk as soon as you can, provided you have stayed current on the loan over a certain time. 

Sell the Car and Pay Off Your Loan

You could sell the car and pay off the loan in full. This only works if your loan is worth less than the car’s value. Paying off the loan will immediately alleviate your debt obligation. You might need your cosigner’s permission to sell the vehicle first. Check with your state’s laws regarding the titling of the vehicle with a cosigner because that person becomes a co-owner once you pay off the loan.

Talk to Our Auto Loan Experts in Catskill

Now you know how to remove a cosigner from a car loan! If you have more questions about removing a cosigner from an auto loan or about a vehicle as you shop for a new-to-you car for your Windham garage, contact us or call (518) 303-2798. You can also apply for financing and look over our payment calculator.