How to Refinance a Vehicle to Take a Co-Signer Off

Removing a co-signer from your auto loan will require that you reestablish the loan by yourself or with the aid of another co-signer. You can choose to refinance the auto loan through the original lender or begin financing with another lender. The process will entail reworking the loan to have the credentials of the co-signer excluded from the evaluation. If you or you and your new cosigner are not able to secure financing, you will not be able to modify or refinance the loan, and the co-signer will still be held to account for the auto loan.

Instructions

1

Search online for auto loan finance companies and banks. Inquire through the website or by contacting an agent to determine associated fees for refinancing your auto loan, including reregistration fees and transfer of lien holder fees.

2

Contact the lender through which you currently finance your vehicle to find out if there are any prepayment penalties associated with satisfying your loan before the scheduled end of the terms.

3

Calculate the payoff amount for your loan. Contact the original lender or consult your most recent statement to determine the total amount you will need to refinance.

4

Apply for a refinance with the company through which you already have the loan before seeking a refinance through another lender. The original lender may be more likely to refinance, as it already has a stake in the vehicle and is familiar with your history of payment.

5

Secure another co-signer if you are unable to refinance on the strength of your credentials.

6

Explore options through the lender to bolster your credit worthiness. Options include shortening the terms, paying a larger down payment or establishing an automatic deduction from a deposit account (savings or checking).