Can You Remove a Cosigner from a Car Loan?

It can be difficult to get auto financing in Los Angeles when you don’t have perfect credit. Having a family member or close friend cosign a loan with you is one way to make taking out that loan easier. But once your credit improves to the point you no longer need a cosigner, can you remove a cosigner from a car loan? Yes you can! Keep reading to learn how from the Kia of Cerritos finance center. 

How Can you Remove a Cosigner from a Car Loan

It can actually be very simple to remove a cosigner from a car loan. There are a few different methods for you to choose from. Read through the options below and choose the one that’s best for you:

1. Sell the car and/or pay off the loan. This will work if the car belongs to you or if the amount you owe on the loan is low. In either case, a dealership would buy the car from you and pay off whatever is left of your loan balance. Your name needs to be on the title of the car for this to work. 
2. You could refinance the loan in Carson. If you want to remove someone like your ex-husband or ex-wife as a cosigner, you could qualify for auto refinancing. If you refinance your vehicle, the loan becomes your responsibility.
3. Your loan contract could include a cosigner release option. Some loans from dealerships or lenders have a clause that removes the obligations of the cosigner once a certain number of payments have been made. Speak with your lender to find out more if your contract has this possible. 

Our Finance Team can Talk to You About Car Loans

Our finance team is here to help you no matter what. If you have questions about cosigning a loan, finding hassle-free auto financing, or even new vehicle specials for that car you’ve been eyeing, contact us here at Kia of Cerritos. We’ll be happy to answer your questions and get you what you need. Keep informing yourself with our other car buying tips! Once you’re ready, apply for financing and we’ll be happy to help you get a new vehicle!