 Switching
co-signer on a car loan
|
 Dear
Terry,
I would like to know what ways there are to remove or change a co-signer
on a car loan? I've read several articles online that it is possible
to remove the co-signer through a refinance. Also, is it possible
to change the co-signer to a different co-signer through refinancing?
-- Gene
 Dear
Gene,
Some banks and finance companies may allow you to remove a co-signer
if they determine that the remaining person on the loan is creditworthy.
You should ask your lender if this is possible. Rarely
will a lender go to the trouble of letting you substitute one co-signer
for another. The other alternative is to refinance the vehicle,
essentially applying for a new loan in your name alone. That may
involve paying new sales taxes if the co-signer is listed on the
title because technically you're reselling the vehicle. Check with
your state DMV to see if that's the case.
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