Switching co-signer on a car loan

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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?


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.