Most lenders do not allow co-owners to remove one another from an already-established car loan. Because of this, you cannot remove the co-owner's name from the title, either. You can call your bank to ask about its removal process, but it likely requires you to keep your husband on the loan and title until the loan is satisfied.
How Your Loan Was Established
Your current loan was based upon information initially obtained from both you and your husband's credit report. Both of your credit applications determined your approval term, interest rate and down payment, if any was required. Additionally, your loan-to-value ratio, which is the percentage of a vehicle's value you may borrow against, was determined using both of your information. For this reason, you cannot simply remove someone from a loan, whether it is a non-related co-owner or a spouse.
Talk to Your Husband
Since your husband is a co-owner, he must agree to sign the vehicle's title over to you if you decide to pay off the loan or get rid of the car. While you may pay the car payment and drive the vehicle daily, he is still a partial owner and just as responsible for the vehicle's loan payments. Before you try to take him off of the loan or title, make sure he agrees to sign the title over to you. Even if you obtain a new loan, he has to sign the title to release his interest in the vehicle.
Refinancing Option
If you have your husband's agreement, try to refinance the loan with another lender. To do this, call your lender to obtain the car's loan payoff amount and apply to another lender for the loan's balance. Once you have an approval, your new lender will pay off the old loan balance, but still, all owners must sign the title. If you do pursue a new loan and your husband refuses to release ownership, you cannot transfer the title or the loan.
Sell the Vehicle
If you want to cut ties with your husband but he refuses your sole vehicle ownership, consider selling it. Again, he must agree to this, but he may be more receptive to making a profit or getting rid of the vehicle all together. You can sell your vehicle for any price you determine as fair. You must also satisfy the loan balance to release the vehicle's lien. If you sell the car for less than the loan's payoff amount, you must come up with the balance due. If you sell it for more, you and your husband can split the profit.
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