Cosigners Are Only Responsible for the Loan In a cosigner situation, one borrow is the primary borrower. That’s usually the person who’s going to use the car, and who has the primary responsibility in paying it off.

How do I remove a primary borrower from my car loan?

Fear not, as there are two main ways to remove your name from a joint auto loan: refinancing or selling the vehicle.

1. Refinancing. If the other co-borrower wants to keep the car and you want your name removed from the loan, they can try to qualify for refinancing.
2. Sell the car.

Can a co signer take a car from the primary owner?

Even if the primary owner quit making payments on the car and the bank was threatening repossession, the co-signer is powerless to take the car. Although banks rely on co-signers to make car payments in a worst-case scenario, civil law does not give co-signers any right to take a car from the primary owner under any circumstances.

What happens when I co sign for a car loan?

When you co-sign for a car loan, you put your own credit on the line by agreeing to guarantee the primary owner’s payments. If the primary owner does not make the payments as promised, the lender will require the co-signer to pay off the balance of the car loan plus interest.

What happens if the primary owner of a car does not pay?

If the primary owner does not make the payments as promised, the lender will require the co-signer to pay off the balance of the car loan plus interest. While several pitfalls come with co-signing a car loan, one key disadvantage is that you have no rights of ownership concerning the car, only an obligation to pay if the primary owner doesn’t.

When to remove a cosigner from a car loan?

It can be challenging to remove a cosigner from a loan. To gain a better understanding of why, let’s look at why a cosigner is used at all. Essentially, a cosigner is needed when the borrowers own credit and/or income isn’t enough to qualify for the loan by himself or herself.