Switching co-signer on a car loan

q_v2.gifDear 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

a_v2.gifDear 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.

Here are this week's reader questions:
  • Car-lease ads sound too good
  • The dealer sold me the wrong car. What can I do?
  • Should I buy a car or save for a house?
  • How can I remove a co-signer from my loan?



Show Bankrate's community sharing policy
          Connect with us

Get cost-cutting tips for buying, selling and maintaining your wheels. Delivered monthly.

Partner Center


Tara Baukus Mello

VW exec talks recall in front of Congress

Congressional testimony on Volkswagen's diesel emissions issue includes how it will fix cars, the timing of the repairs and what owners can expect afterward.  ... Read more

Connect with us