How to Be Removed as a Co-signer on a Vehicle

If co-signing a vehicle loan, your name will stay on the car loan for the length of the term. Because the loan affects your debt-to-income ratio, you may run into problems when applying for your own car loan or mortgage. For this reason, you may consider options for removing your name from a vehicle loan for which you co-signed. This is possible, but requires the primary borrower refinancing the loan.

Instructions

1

Meet with the vehicle owner, who's also the primary borrower on the car loan. Tell him that you want to remove your name from the loan.

2

Ask the primary borrower to apply for a new auto loan. Auto lenders will not make changes to existing loans or rewrite a loan unless the borrower refinances and qualifies for the loan based on his own income and credit. Contact the bank to inquire about refinancing requirements. Ask about credit score minimums.

3

Suggest adding someone's name in place of yours if the primary borrower doesn't qualify for a new vehicle loan without a co-signer. Once approved with a new co-signer, this person appears with the primary borrower at closing and signs the papers for the new vehicle loan. Because the new loan replaces the old, this action releases you as a co-signer.