How to Remove a Cosigner from a Car Loan

Couple talking to salesman

Can You Remove a Cosigner from a Car Loan? Drivers from Naperville to Elmhurst have found that when attempting to secure a car loan, the addition of a cosigner can make the process quicker and easier. Typically car buyers defer to a friend or family member when they’re looking to benefit from a cosigner. On the other hand, for those who already have a loan and are wondering how to remove a cosigner from an auto loan, the finance team at McGrath Acura of Westmont explains that process here. While the actual process varies depending on your particular car loan, it can be as simple as contacting your lender to get a cosigner released. Below you will learn more about how to get a cosigner off a car loan.

What’s the Purpose of a Cosigner on a Loan?

The purpose of a cosigner is to make it easier for the borrower to get approved for the type of loan they’re applying for. If the individual taking out the loan does not have the right credit score or enough credit history, a cosigner is sometimes needed. Furthermore, if the borrower doesn’t earn enough income to qualify for a car loan on their own, a cosigner and their income history will help improve their chances of getting approved. A cosigner’s job is also to help satisfy the lender that the loan will be repaid because even if the borrower can’t make payments. By signing, the cosigner agrees to cover the loan payment in the case of nonpayment by the loan holder. Because of this, it is important that before cosigning a loan, a cosigner makes sure the potential loan payments fit into their budget.

How to Get a Cosigner Off a Car Loan

Wondering how to remove a cosigner from a car loan? There are a few different ways this is possible:

  • Refinance the Loan: For Westmont area drivers looking to remove an ex-spouse as a cosigner, for example, you may have the opportunity to refinance the loan. In the case of a divorces, a divorce decree does not mean the borrower and cosigner are released from the terms of the loan. In this case, if the ex-spouse who’s obligated to make the monthly payment fails to do so, the credit scores of both the borrower and cosigner will be negatively affected. Refinancing in your name is an important step to take to remove the cosigner so the loan will become your sole responsibility.
  • Cosigner Release: On the other hand, another avenue Naperville drivers can go down is to check if the car loan has a cosigner release option. Some car loans actually include policies that remove a cosigners obligations once a certain number of payments have been made by the primary borrower (in full and on time). If your loan does have this option, contact the lender and check your loan contract to learn more.
  • Sell the Car and Pay Off the Loan: Downers Grove drivers can rest assured, if their name is on the car title, they have the power to sell the car to someone else and use your earnings to pay off the loan, freeing both themselver and the cosigner from any obligation.

Removing Cosigner from Auto Loan by McGrath Acura of Westmont

For Elmhurst area drivers that have been wondering how to remove a cosigner from an auto loan, hopefully this article was able to explain the process. Simply put, it is possible to remove the cosigner, but you’ll need to refinance, sell the car and pay off the loan, or take advantage of cosigner release options that exist for your loan. Still have questions about auto financing near Naperville? Simply contact us at McGrath Acura of Westmont so we can help you drive off in your dream new vehicle today.

More From McGrath Acura of Westmont

  • 2020 Acura MDX Interior

    Naperville drivers who’ve compared the 2020 Acura MDX to the 2019 Lexus RX loved the Acura interiors’ plush sophistication equipped with state of the art technology that makes every drive to Elmhurst safe and entertaining. Like every Acura interior, the MDX interior doesn’t miss any detail, with exceptional spaciousness and comfort amenities in a variety…

  • 2020 Acura RDX Cargo Space

    While many Naperville drivers have been drawn to a luxury SUV like the 2020 Acura RDX thanks to its incredible performance capabilities and towing power, you’ll continue to be impressed by its spacious and fully loaded interior cabin. From the improved Acura RDX cargo space and passenger specs to its standard range of interior technology…

  • What is the 2020 Acura MDX Towing Capacity?

    Working a tough job around Naperville, or need a spacious and tough SUV to haul heavy equipment? The 2020 Acura MDX towing capacity enables you to take on difficult tasks with precision and efficiency. The strong Acura MDX towing capabilities are further supported by advanced safety features and a set of top performance specs. See…

Saved Vehicles


You don't have any saved vehicles!

Look for this link on your favorites:


Once you've saved some vehicles, you can view them here at any time.

Contact Us

400 East Ogden Avenue • Westmont, IL 60559

Get Directions

Today's Hours:

Open Today! Sales: 9am-8pm

Open Today! Service: 7am-6pm

Open Today! Parts: 7am-6pm

McGrath Acura of Westmont 41.810947, -87.965787.