A buyer (or co-buyer) can generally take a car from another co-buyer if both names are on the vehicle’s title, as both parties hold equal ownership rights and possession rights. Police will typically treat this as a civil matter rather than theft. However, if the second person is only a co-signer (on the loan, not the title), they generally have no legal right to take the vehicle.
Generally, both borrowers are listed on the car title, which might be something you want to avoid if you've split with your ex for good. If the other person is also listed on the title, they can take the car away from you and there may be little you can do about it.
A co-signer also is someone who signs a loan or lease agreement alongside the primary borrower, but this person doesn't have any ownership rights to the vehicle, whereas a co-buyer is a joint owner of the vehicle.
Get consent
If it only contains the word “and,” both parties need to agree to remove any name from the title. Therefore, you'll need to get consent from the co owner. Ideally, permission should be in writing and include information about the removal and any agreements between the co owners.
Typically, refinancing into a new loan in just one person's name is the standard way to release a co-borrower from responsibility. That said, alternatives may be available, depending on your lender's policies and your financial qualifications.
As a cosigner on an auto loan, your credit will suffer if the lender repossesses the vehicle. You may still be responsible for paying on the loan, even after repossession. To avoid repossession, work with the lender to devise a payment plan or be removed from the loan.
In California, 50% co-owners hold significant rights and responsibilities under state law. As a rule, co-owners have an equal ownership right in shared property, including the right to use and enjoy the entire property and the right to partition the property, regardless of the percentage of ownership.
Even with the co-owner, the primary borrower is still the owner of the vehicle. This arrangement is safer for the co-owner since their names are in the title. The co-owner also has equal rights to the property and must be involved in the sale of transfer of the car.
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.
The partner who is titled to the car will get to keep the car. If they decided to give the car to the other partner, the couple would need to re-title, and re-finance the car to remove the old loan. Figuring out how to handle a car after separation is difficult.
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.
To qualify for a $30,000 car loan, most lenders prefer to see a credit score of at least 660 to 700. That being said, your credit score is only one part of the equation. Lenders will also consider: Your debt-to-income ratio (how much you owe compared to how much you earn)
Both parties must agree to sell assets: Since both co-borrowers have legal rights to the property, both must agree before selling jointly owned assets.
Under California law, every co-owner has the right to seek a partition of jointly owned property. This legal remedy allows the court to divide or sell the property and allocate the proceeds, bringing finality to otherwise intractable disputes.
In short, 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 particular loan.
If the primary borrower isn't keeping up with loan payments, the cosigner cannot take possession of the auto. While a cosigner has a financial obligation to the lender, they have no legal ownership or right to take possession of the car, unless they were specifically added to the car.