Can a cosigner take the car away?

Asked by: Lorenza Kris  |  Last update: March 9, 2025
Score: 4.9/5 (15 votes)

Unfortunately, since you have no legal rights to the vehicle, the primary borrower has to take the initiative to remove someone's name from the contract. Cosigners can't take possession of the vehicle they cosign for or remove the primary borrower from the loan since their name isn't on the vehicle's title.

What rights does a cosigner have on a car?

While you won't have any legal rights to the vehicle unless granted permission, you must be prepared to cover payments, late fees and collection costs if the borrower defaults. Failing to keep up with car loan payments will negatively impact your credit score.

Can a co-signer take my car away?

Can a cosigner repossess a car? It's important to know that taking possession of the car if the primary borrower defaults, or “taking matters into your own hands,” is not a legitimate substitute for legal action.

How can I legally get out of a cosigned loan?

lenders do not remove co signers from loans. The debt has to be retired. This can be done by paying it off directly or refinancing the loan.

How do I get my car back from a cosigner?

Here are the four main ways to remove a cosigner:
  1. Release the Cosigner. Some banks and lending companies offer cosigner releases. ...
  2. Pay Off the Loan. If you have the money to pay off your loan in full, you might consider this option to remove your cosigner. ...
  3. Refinance Your Car. ...
  4. Sell the Car.

How to Take a Co-Signer Off a Car Loan

22 related questions found

Can a cosigner take their name off a car?

Fortunately, you can have your name removed, but you will have to take the appropriate steps depending on the cosigned loan type. Basically, you have two options: You can enable the main borrower to assume total control of the debt or you can get rid of the debt entirely.

How do I protect myself as a cosigner?

5 ways to protect yourself as a co-signer
  1. Serve as a co-signer only for close friends or relatives. One of loan co-signing's biggest risks is potential damage to your credit score. ...
  2. Keep copies of all the loan documents. ...
  3. Create a contract. ...
  4. Track monthly payments. ...
  5. Ensure you can afford payments.

Can I remove myself as a cosigner on a car?

A co-signer or co-borrower can request a release from a car loan, refinance the loan, pay off the loan or sell the vehicle to remove themselves from the loan agreement. It is important to communicate with the other borrower and come to an agreement on how to handle the loan before taking any action.

Can you sue someone if you cosigned a loan?

Yes, you can sue the person you co-signed for if they don't make the payments they promised to make. You may be able to get a judgment against them in court, but it could be hard to collect that money since they didn't pay the debt in the first place.

Can you remove someone from a car loan without refinancing?

But if your circumstances change over time or your credit score improves and you would like to remove the co-signer from your loan, there are three primary options. You can refinance, get a co-signer release or pay off the loan.

Can a cosigner surrender a car?

Unfortunately, since you have no legal rights to the vehicle, the primary borrower has to take the initiative to remove someone's name from the contract. Cosigners can't take possession of the vehicle they cosign for or remove the primary borrower from the loan since their name isn't on the vehicle's title.

Who owns the car with a cosigner?

Co-signing means you are responsible for covering payments if the main borrower cannot, but you do not have any legal rights to the car. Co-owning means both parties have equal ownership and financial responsibility for the car.

How bad does a repo hurt a cosigner?

Repossession is really bad news for both the borrower and the cosigner. Not only will the borrower lose their mode of transportation, but one of you will likely have to pay the remaining balance, and credit scores belonging to both of you will take a hit in the process.

Can a cosigner take your car without permission?

Unlike co-borrowers, who are on the title or have some claim to the property or funds, co-signers have no title or ownership of the property the funds are used for. For example, a co-signer for a vehicle has no legal right to the financed vehicle.

Can a co-signer have a car repossessed?

Usually, when you cosign a car loan, you agree to be responsible for the debt if the primary debtor doesn't make payments or otherwise defaults on the loan. If the primary debtor defaults on the loan, then the creditor has the right to repossess the car and sell it.

How soon can you take a cosigner off an auto loan?

Co-signers cannot remove themselves from a loan or be removed by the primary borrower. A co-signer's obligation is eliminated when the loan is paid off or refinanced without their involvement.

Can someone take their name off a cosigned car?

The short answer is yes! Removing a cosigner from a car loan is absolutely possible, but there are a few different routes you can take to achieve it. The finance team at Marietta Toyota has outlined the purpose of a cosigner along with common ways to release them from a car loan below, so read on!

Can a cosigner go to jail?

However, in certain legal circumstances, the cosigner may face jail time. For example, in a case where the co-signer helped to facilitate the defendant's flight, provided false contact information, or in any way assisted the defendant in evading prosecution.

What happens if I cosign for a car and the other person doesn't pay?

If you cosign a debt and the borrower doesn't pay, in most every case you will be responsible for the entire debt. And, the lender does not have to try to collect from the borrower. It can look to you even if it might be possible for it to collect from the borrower.

Can a cosigner get your car taken away?

If no one is making payments (either you or cosigner) the car will be taken. It is your car that will be taken because you bought it, you have the keys, you use it. The cosigner is not losing his car, he just agreed to pay for your car if you did not.

How do I get my name off a cosigned car?

Option #1: Get a Cosigner Release

If you cosigned for a loan, one of the quickest routes out is to apply to the lender for a cosigner release. This lets the cosigner off the hook, so that only the primary borrower is the one listed on the loan going forward.

How to get rid of a car loan legally?

Jump to:
  1. Sell the Car.
  2. Renegotiate the Terms of the Loan.
  3. Refinance the Loan.
  4. Pay off the Loan.
  5. Consider a Voluntary Repossession.
  6. Other Options.
  7. Getting Out of a Car Lease.

What legal action can a cosigner take?

But most states allow cosigners to take primary borrowers to court in the following situations: Cross claims: If you default on or fail to repay the loan, the lender could sue the cosigner for the money owed. The cosigner may then be able to sue you for the money that the lender is trying to recover.

How can I legally remove myself as a cosigner?

Co-signers can make a written request to the lender to be released from a loan. In certain cases, like some student loans, there may be a provision that allows a co-signer to take their name off a loan.

How much rights does a cosigner have?

No. Cosigning a loan doesn't give you any title, ownership, or other rights to the property the loan is paying for. Your only role is to repay the loan if the main borrower falls behind on the payments or defaults.