Can You Remove a Cosigner from a Car Loan?

Depending on the situation, some Farragut shoppers might need a cosigner for their auto loan. Cosigners can often help lenders pre-approve their potential customers in getting a car loan. But sometimes, your situation might change and you find yourself wondering, “Can you remove a cosigner from a car loan?” and the finance experts at Ole Ben Franklin Motors are here to help. In most cases, you are able to remove a cosigner from a car loan.

However, this can change from lender to lender so it’s important to know the terms and conditions of your loan or contract. For more information about consignors and an in-depth explanation to “Can you remove a cosigner from a car loan?” continue reading below!

Why Do You Sometimes Need a Cosigner?

Sometimes finance centers and automotive loan lenders around Sevierville might ask for a cosigner. Why is that? You’ll often need a consignor if your credit needs a bit of work or you’ve got a high debt-to-income ratio. This is because a cosigner can help the lender feel at ease since that means someone can vouch for you. It helps protect the lender so that if you happen to miss payments, your cosigner can jump in.

Keep in mind that if you miss your car payments, your cosigner could end up having a negative mark on their credit. If you’re not sure about your specific financial situation, you can always count on us for assistance.

Different Ways to Remove a Cosigner From a Car Loan

Oftentimes, we find that many of our Seymour customers improve their credit with our car loans so they begin their research into removing a cosigner. It’s also likely that your financial situation has just changed and you’re just looking for ways to remove the cosigner from your auto loan in general. Whatever your reasoning is, here are some different methods you might be able to utilize to remove a cosigner from your car loan:

• Refinance: Refinancing your auto loan means you’re getting a new or reworked loan for the same vehicle. When you refinance, you’ll likely have the ability to remove the cosigner and possibly even secure a better interest rate.
• Cosigner Release Form: Some auto loans might have a cosigner release form. This can be a good way to remove the cosigner if your contract terms allow it.
• Start Fresh: If none of the above options work for you, you can also look into getting a different vehicle. By selling and paying off your current loan with the cosigner, you’ll remove all obligations and will then have the ability to start fresh, without a cosigner, on a different auto loan.

Visit the Ole Ben Franklin Motors Finance Center Today!

If you’re not sure about your options or you need further advice before you make a decision, you’re more than welcome to stop in at the Ole Ben Franklin Motors finance center for assistance. Our finance team in Knoxville is equipped to handle all different credit backgrounds so we’re almost guaranteed to find an option that works for you. You can always contact us if you have any further questions!