How to Get Out of a Cosigned Car Loan
Most financial experts will warn against the dangers of co-signing a loan. However, many people do it anyway, because they want to help out a relative or friend. And some of those people decide later that they wish they had not co-signed the loan. It is difficult to get out of a loan you have co-signed, but it is not impossible.
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Instructions
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Call the lender to see what you need to do to be removed from a loan as a co-signer. Make a list, and get started.
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You might be able to get the loan refinanced, without you as a co-signer. In order to refinance the loan, the loan might need to be paid down significantly, or the borrower might have to accept a higher interest rate because the bank feels the loan is more risky when you are removed as a co-signer.
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You can try having the the friend or relative with whom you are a co-signer apply for refinancing on his own. You originally became a co-signer because your friend or relative could not get a favorable enough loan on his own. But time has passed, and things might have changed. He might have been working at his job long enough, or perhaps he got a raise or a promotion. He might qualify for the loan on his own now.
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If you cannot get the loan refinanced, another option is to find a new co-signer who meets the lender's criteria.
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Your final option is to pay off the entire loan balance. When the loan is paid in full, you are released from your obligation as a co-signer.
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