How do I remove my name from a cosigned car loan?
I cosigned a car loan for my brother over a year ago, but now I want out. How do I get my name off the loan agreement?
“When you cosign a car loan, you assume responsibility for making the payments if the primary borrower has trouble making paying down their debt. Borrowers who have little credit history, or who have had credit problems in the past, may be asked to find a cosigner to bolster their application so the loan can be approved.
If you reconsider your decision to cosign a loan, getting your name removed can be cumbersome. There are three main ways to get this done:
- Have the primary borrower obtain a cosigner release, which will remove your name from the loan. This is relatively rare, but it’s worth pulling out your loan documentation to see if it’s possible. Some minimum number of on-time payments is usually needed to qualify for this option.
- Have the primary borrower refinance the loan in their name alone. This is most feasible if the loan has been open for a while and the payments have been consistently made on time, or if the primary borrower has had a significant increase in income.
- Sell the car and pay off the loan. The newer the vehicle, the less likely it is that a private sale will cover the full amount owed. You would still be on the hook for whatever is left. “
Did this answer help you?
Ask us a question by email and we will respond within a few days.
Have a different question?
You can meet us at our office and discuss the details of your question.
Read advice from car experts at Jerry
Browse by topics
What others are asking
Should I finance all or some of a new car?
"Is it better to pay cash for a used car? I am planning on buying a used car and have negotiated a price. At $30k I can pay for most of the car out of pocket."
Jul 28, 2021
Should I get additional coverage on top of Tesla roadside assistance?
"I had a flat tire on my Tesla in my driveway, so I called the company's roadside assistance number. They quoted me $80 to fix the tire or $340 for a replacement. They also said they couldn't get to it until tomorrow. So I'm thinking, what if I was stranded in the middle of nowhere? Should I get additional roadside assistance?"
Jun 23, 2021
What is gap insurance and why do I need it?
"Do I need gap insurance if I already have full coverage? What does it cover? "
Apr 14, 2021