Can You Remove a Cosigner from a Car Loan?

For many car buyers in the San Antonio area and beyond, obtaining an auto loan is not easy. One way most Corpus Christi and Laredo shoppers get approved is by adding a cosigner. With that said, you should know your options. Can you remove a cosigner from a loan? It’s not a quick task, but you can. Some options and restrictions vary from lender to lender, but some will have information about adjusting the loan or contract. Learn more about removing a cosigner from an auto loan with the experts at Land Rover San Antonio.

Should I Get a Cosigner on a Loan?

Many drivers get a cosigner because they want to get a car loan with bad credit. Whether you decide to get a lease or buy, there are various reasons why drivers have a cosigner:

• You have low credit due to missed payments or a high debt-to-income ratio. Adding a cosigner to the dotted line proves that someone else trusts that you’ll pay back the loan.
• This creates a protective buffer for the lender since the partner is required to make payments if you fall behind.
• However, it’s a new financial risk for your partner. If you fail to pay back your loan or end up missing payments, it also leaves a negative mark on their record!

Even with timely payments, many still want to know, can you remove a cosigner from a car loan? This debt makes it hard for the cosigner to take out another loan.

Removing a Cosigner from Your Auto Loan

Removing a cosigner from an auto loan is possible! Contact your lender to discuss the following options with them:

• Refinancing Your Loan – ‘Refinancing’ is another way of working out new loan terms with either the same lending partner or a new one. If you can refinance by yourself, your cosigner’s name gets removed, and you may even earn a better interest rate. This only works if your credit has gone up since taking out the original loan.
• Cosigner Release – Look at the fine print of your contract and see if there’s a cosigner release option. If you have made enough on-time payments, some contracts can let you remove the cosigner’s name.
• Sell the Car and Pay Off Your Loan – You can consider selling your vehicle and paying off the loan. This will only work if you’re not underwater on your car loan. This instantly removes everyone’s obligation.

Learn More from Land Rover San Antonio!

Now that you know how to remove a cosigner from an auto loan, why not give us a call if you’re in the market for a new Land Rover vehicle. If you still want to know how to remove a cosigner from a car loan, don’t hesitate to reach out to our finance team for additional information.