Saved Vehicles
Contact Us

(718) 515-4600

Call Now

4070 Boston Road • Bronx, NY 10475

Get Directions

Today's Hours:

Open Today! Sales: 9am-9pm

Open Today! Service: 8am-5pm

Open Today! Parts: 8am-5pm

Can You Remove a Cosigner from a Car Loan?

Woman Signing Paperwork

If you’ve been considering adding a cosigner to your auto loan, you may be wondering about removing a cosigner from your auto loan. Can you remove a cosigner from your auto loan? Yes, you can! However, you may have to jump through a few hoops. When it comes to how to remove a cosigner from a car loan, restrictions and options vary from lender to lender. Find out how to remove a cosigner from a car loan today with the Victory Mitsubishi finance team!


Why Have a Cosigner on a Car Loan?

Including a cosigner can help you secure a car loan if you have had credit issues or if you don’t have any credit. Having someone with a higher credit score vouch for you makes you a more attractive option for lenders. A cosigner can:

  • Instill lender confidence if your credit is low due to missed payments or you have a high debt-to-income ratio.
  • Offers a backup for the lender, as your cosigner is supposed to step in and make payments in the event that you fall behind.

It’s important to note, however, that if you miss payments or don’t make payments on time, your cosigner will be negatively impacted. They can be expected to make the missing payments and their credit score can suffer as well.

Why Remove a Cosigner From an Auto Loan?

Even if you’re consistent with your payments, a time could come where either you or your partner might want to remove their name from the loan. After all, the amount of debt in their name could prevent them from taking out their own auto loan, purchasing a house, and more.

How to Remove a Cosigner From an Auto Loan

Removing a cosigner from an auto loan is almost always possible. First, we suggest speaking with the lender about how to remove a cosigner from an auto loan. When you have them on the phone, you’ll want to discuss the following options:

  • Refinancing Your Loan – Refinancing a loan is the process of working out new loan terms with your lender or a new lender. If you’re able to refinance on your own, your cosigner’s name can be removed from the loan. This approach can be useful if your credit score has increased since you originally took out the loan.
  • Cosigner Release – Some contracts include an option for a cosigner release. This allows you to remove the cosigner’s name in the event you’ve made enough on time payments.
  • Sell Your Car & Pay Off Your Loan – If other options don’t work out, selling your car and using that money to pay off your loan is an option. Once your loan is paid off, any obligation from the cosigner is removed. However, if you’re underwater on your loan, it will likely require some additional capital on your part to pay off the loan.

Explore Financing Options With Victory Mitsubishi!

You’ve learned how to remove a cosigner from a car loan, but Victory Mitsubishi’s finance team can help you explore all of your financing options for your new vehicle purchase. Apply for financing online, or reach out to us to discuss your finances with our team!

Learn More with Victory Mitsubishi

  • 2019 BMW X6 Interior

    When you’re behind the wheel of the 2019 BMW X6, you’re in control of your drive in Mount Vernon. Not only do you have an incredible engine at your disposal driving you around town, when you sit inside its roomy, well appointed cabin, you’re truly moving in style. The 2019 BMW X6 interior needs to be…

  • 2019 Audi Q5 Configurations

    Driving a used luxury car doesn’t have to break the bank when you’ve got an option like the 2019 Audi Q5. The 2019 Audi Q5 trims range from the entry-level but still luxurious to the absolutely feature-filled and extravagant. Victory Mitsubishi has a breakdown of the Audi Q5 configurations for your Mount Vernon viewing pleasure. View InventoryContact…

  • The 2019 Audi Q7 Trims

    If you’re looking for a luxury used vehicle, you may be considering the 2019 Audi Q7. This luxury SUV is made to maximize the driving experience by focusing on performance and the comfort of the driver and passengers. There are four different Audi Q7 trims for Mount Vernon drivers to choose from, so take a virtual…

Victory Mitsubishi 40.8853426, -73.8287864.