What happens if the cosigner of a car loan dies?

I'm halfway through my car loan, and my uncle, who cosigned the loan, has died suddenly. Am I going to lose my car or have to pay the total amount? I can't afford that. What happens if the cosigner of a car loan dies?

Answer
I’m so sorry for your loss.
Whenever you’re able, the first thing you should do is contact your lender and let them know your cosigner has passed away. Your lender will usually do one of two things:
  • Renegotiate
  • Keep the same deal
If they choose to renegotiate, that means they will go over your loan with you and help you make any necessary adjustments.
If they choose to keep the same deal, that means nothing will change about your loan, so long as that still works for you. You’ll keep the same payment plan and interest rate as the original loan you qualified for with the help of your uncle. This is generally the case if you’ve been making your payments on time.
No matter what, make sure to let your lender know about the circumstances. Not telling your lender could lead to legal action.
Hopefully, this helps alleviate some of your fears!
If at any time you need to make further changes to your loan, you likely can by refinancing.
Jerry is an app that does all of the work needed to refinance your car for you. Jerry uses your current loan information and credit score to find competitive rates from top lenders. On average, people pay $85 less every month on their car loans after refinancing.
Lauren Smith
Answered on Nov 19, 2021
Lauren has written for World Nomads, the Matador Network, Korvia Consulting, and once upon a time Three Fates Games. She graduated from Columbia College of Chicago with a BFA in Creative Writing. After graduating, she moved overseas and lived in South Korea where she spent her free time traveling and going on road trips with friends. She misses the rest stop potatoes and is trying to figure out how to recreate them at home. She's now based outside of Chicago and when she's not writing she spends her free time reading, playing video games, and exploring whenever she can.
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