Can You Sell a Car That Has a Co-Signer?

Most lenders and dealerships complete your motor vehicle paperwork the same time you complete your loan paperwork. Unless you stated otherwise, the lender or dealer probably listed your co-signer's name on the vehicle's title. As long as the titled co-owner agrees to sign the title, you can sell the car.

Review the Title

Take a look at your vehicle's title to determine whether you need the co-owner's signature. Some states titles list "and" or an "or" in between both owners' names. If your title reads "or" between the names, either one of you can sign the vehicle's title to transfer ownership. If the title reads "and" between each name, you both must sign the title to release ownership. You'll need the titled co-owner's permission to sell the vehicle, so obtain her authorization before you attempt to sell your car.

Title Transfer Procedure

Exact title transfer rules and requirements differ by state. You might need to have both signatures notarized. If so, sign the title and have your signatures notarized before you complete the sale of the vehicle to save time. Most motor vehicle offices in states that require notarized signatures offer the service at local offices. You don't need to have the buyer present to sign your portion of the title. If you don't have a co-owner listed on the vehicle's title and your state doesn't require a notarized signature, wait to sign the title over to your buyer once you complete the sale.

Title Holding States

If you haven't satisfied the loan on your vehicle, you might not have a title. Some states send a vehicle's title to the auto loan provider instead of the borrower. If you don't have a title for the car, call your lender to find out about its payoff procedure and whether you need the co-signer's signature to sell the car. If you already paid off your car loan, you'll need to provide the buyer with an original lien release. Most states require proof of the satisfied loan for title transfers. The lien release is still acceptable even if it lists only one name.

Other Documents for Title Transfer

Check with your state's motor vehicle agency to find out which other documents it requires for title transfers beside the title. Some states require a bill of sale or an odometer statement. In most cases, only one titled owner needs to sign additional paperwork. If you find you need the co-signer's signature on other forms, plan ahead and have the co-owner sign his portion of additional paperwork. This way, you don't hold up the sales process.