Car loans · Elgin Auto Sales & Service Center · Elgin, IL
How to Remove a Co-Signer From a Car Loan
A co-signer helped you get approved, and now one of you wants them off the loan. Here is what co-signing commits a person to, and the realistic ways to end that obligation, based on the Consumer Financial Protection Bureau's auto loan guidance.
Equally responsiblea co-signer must repay if you do not
Askyour lender about your options
Refinancea new loan in your name alone
Payoffends the loan for both of you
The short answer
A co-signer stays legally responsible for the loan until it is paid off, so the usual ways to take them off are to replace or end the loan. Start by asking your lender or servicer what options it offers. If you now qualify on your own income and credit, you can apply to refinance in your name alone; the new loan pays off the old one, and with it the co-signer's obligation. You can also sell the vehicle or trade it in and pay off the loan. Before you do, check your contract for a prepayment penalty and get the exact payoff amount.
What a co-signer agrees to
The CFPB describes a co-signer as someone, such as a parent, family member or friend, who adds their information, including income and credit record, to someone else's loan application to help the primary borrower qualify or get better terms. In return, the co-signer pledges to pay the loan back if the primary borrower does not.
The co-signer does not necessarily have the same rights to the vehicle as the primary borrower, but the CFPB says they are equally responsible for making sure the loan is repaid. Missed payments can appear on the co-signer's credit reports, and depending on state law, the lender could sue both the borrower and the co-signer for the outstanding balance after a default. That is why many co-signers want off the loan once the borrower can stand on their own.
From Should I agree to co-sign someone else's car loan? (Ask CFPB) and Why would I need a co-signer for an auto loan? (Ask CFPB), read November 9, 2026.
Ways to remove a co-signer from a car loan
Apart from asking your lender, each of these ends or replaces the loan the co-signer signed:
| Option | How it works | What to check first |
|---|---|---|
| Ask your lender | Contact your lender or servicer and ask what options are available for your loan, including whether it offers a co-signer release. | Get any agreement in writing. |
| Refinance in your name alone | A new loan, in your name only, pays off the current loan in full. | Whether you now qualify on your own income and credit, and whether the current loan has a prepayment penalty. |
| Sell the vehicle | Use the sale proceeds to pay off the loan. | How much you owe compared with the vehicle's approximate market value. |
| Trade it in | The dealer pays off the existing loan as part of your next purchase. | Your payoff amount, whether you owe more than the trade-in is worth, and afterward, that the old loan was paid off. |
| Pay it off | Paying the loan in full ends the obligation for both of you. | The exact payoff amount from your lender or servicer. |
Refinancing, selling and written agreements from What should I do if I can't make my car payments? (Ask CFPB); prepayment from Can I prepay my loan at any time without penalty? (Ask CFPB); trade-in payoff from Should I trade in my car if it's not paid off? (Ask CFPB), Consumer Financial Protection Bureau, read November 9, 2026. Asking about a co-signer release is our own general suggestion; not every lender offers one.
Refinancing on your own
The CFPB says a co-signer with a good credit history can increase the likelihood that a borrower qualifies for a loan or gets better terms, and that if you are told you need a co-signer, it generally means the lender will not offer you the loan based solely on your own income and credit record. If your income or credit has improved since you first borrowed, you may now qualify alone. A lender cannot require a co-signer if you qualify on your own; ask whether you would be approved alone and on what terms.
When you refinance, you must prepay the original loan in full, and the CFPB says you may incur a fee if your current agreement has a prepayment penalty. Compare the new loan's APR, amount financed, loan length and total cost, not just the monthly payment. See APR vs. interest rate and how to finance a used car.
From Why would I need a co-signer for an auto loan? (Ask CFPB), Can I prepay my loan at any time without penalty? (Ask CFPB) and How do I compare auto loan offers? (Ask CFPB), read November 9, 2026.
Selling or trading in the vehicle
The CFPB says that before you sell, you should find out how much you owe on the loan and the approximate market value of the vehicle. If you owe less than the vehicle is worth, you can sell it and use the proceeds to pay off the loan. Check your contract for a prepayment penalty as well.
Trading in works the same way: the payoff amount, which can differ from the balance on your statement, has to be covered. If you owe more than the vehicle is worth, that difference is negative equity. Read how to trade in a car and what negative equity is.
From What should I do if I can't make my car payments? (Ask CFPB) and Should I trade in my car if it's not paid off? (Ask CFPB), read November 9, 2026.
Protecting the co-signer in the meantime
Until the loan is paid off or replaced, the co-signer is on the hook. The CFPB says a co-signer can ask the lender to send monthly loan statements or provide access to the online loan account, which can alert them to missed payments and the loan's overall status.
If you are struggling to make payments, contact your lender or servicer as soon as possible. The CFPB says late payments or a default can hurt both your credit and your co-signer's credit.
From Should I agree to co-sign someone else's car loan? (Ask CFPB), Why would I need a co-signer for an auto loan? (Ask CFPB) and What should I do if I can't make my car payments? (Ask CFPB), read November 9, 2026.
Financing a used car at Elgin Auto Sales & Service Center
Shopping for your next vehicle? Browse our used inventory, see our financing options, start a finance application, or get a value with our trade-in form.
Our sales department at 1200 E. Chicago St. in Elgin is open Monday to Friday 9 a.m. to 7 p.m. and Saturday 9 a.m. to 6 p.m., and is closed Sunday. Get directions.
Removing a co-signer FAQ
Can a co-signer be removed from a car loan?
A co-signer is responsible for the loan until it is repaid, so the common routes are to refinance in the primary borrower's name alone, or to sell or trade in the vehicle and pay off the loan. Ask your lender or servicer what options it offers.
Can I refinance a car loan to remove a co-signer?
Yes, if you qualify on your own. Refinancing pays off the original loan in full; the CFPB notes you may owe a fee if your current loan has a prepayment penalty.
Does a co-signer own the car?
Not necessarily. The CFPB says a co-signer does not necessarily have the same rights to the vehicle as the primary borrower, but is equally responsible for repaying the loan.
What happens to the co-signer if I miss payments?
The co-signer will be asked to make the payment, and the CFPB says missed payments could appear on their credit reports. After a default, depending on state law, the lender could sue both of you for the outstanding balance.
Can a lender require a co-signer?
The CFPB says a lender cannot require a co-signer if you qualify on your own, and cannot require your spouse to co-sign unless you are both applying for the loan.
What are your sales hours?
Monday to Friday 9 a.m. to 7 p.m. and Saturday 9 a.m. to 6 p.m. We are closed Sunday.
Shopping for your next car?
Visit us at 1200 E. Chicago St. in Elgin.
Sources
Co-signer, refinancing, selling, prepayment and trade-in payoff guidance are from the Consumer Financial Protection Bureau's Ask CFPB auto loan answers, read November 9, 2026. This is general information, not financial or legal advice. Our address, sales and service hours are from our own website, checked the same day. Photo is of our dealership.
- Should I agree to co-sign someone else's car loan? (Ask CFPB), Consumer Financial Protection Bureau, read November 9, 2026
- Why would I need a co-signer for an auto loan? (Ask CFPB), Consumer Financial Protection Bureau, read November 9, 2026
- What should I do if I can't make my car payments? (Ask CFPB), Consumer Financial Protection Bureau, read November 9, 2026
- Can I prepay my loan at any time without penalty? (Ask CFPB), Consumer Financial Protection Bureau, read November 9, 2026
- Should I trade in my car if it's not paid off? (Ask CFPB), Consumer Financial Protection Bureau, read November 9, 2026
- How do I compare auto loan offers? (Ask CFPB), Consumer Financial Protection Bureau, read November 9, 2026
- Home page: address and sales hours, Elgin Auto Sales & Service Center
- Service page: service hours, Elgin Auto Sales & Service Center