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Sometimes when you apply for an auto loan you need a cosigner if your credit is less than ideal or if you have no credit. After you've made progress on your car loan payments and you've improved your credit score, you may be wondering if you can remove a co-signer from your Elgin car loan. There are a few steps involved, but typically yes! You can remove a co-signer from your current car loan. Read below to see how to remove a cosigner from an auto loan with Elgin CDJR, or contact us with your questions about your current CDJR auto loan!

In this article we will cover:

Can you remove a cosigner from a car loan?

How to remove a cosigner from a car loan.

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Why Get a Cosigner?

If you have no credit or bad credit, then adding a cosigner to your car loan will help you get your application approved by the dealership. Whether you're deciding to buy or lease a vehicle for your South Elgin commute, here are the benefits to adding a cosigner to a car loan:
  • Adding a second name to your Streamwood auto loan shows that someone else trusts you to make your loan payments in full and on time. This is especially helpful if your credit is low or if you have no credit.
  • A cosigner creates a protective barrier for the lender, because the cosigner is supposed to step in and make payments in case you fall behind on your payments.
  • This process can create a financial risk to your partner, so make sure to choose your cosigner wisely! If you fail to pay your loans or miss a payment, it will show up on your record as well as your cosigners!
After you've created a relationship with the dealer, you and your cosigner may be wondering how to remove a cosigner from an auto loan so you can each focus your own projects and payment plans. Read below to see the different options you have for removing a co-signer from your auto loan.

How To Remove a Cosigner From An Auto Loan

It's almost always possible to remove a cosigner from an auto loan at a Bartlett dealership. Read below to familiarize yourself with the different ways you can remove a cosigner from a car loan, then contact your dealership or lender to begin the process.
  • Refinancing Your Loan: By refinancing your loan, you're creating new loan terms with your lender - or another lender - on how much you're paying for your vehicle and for how long. If you're able to refinance on your own, your cosigner will be removed from the loan, and you may score a better interest rate in the process. This is a good option to try if your credit has improved since you took out the initial loan.
  • Cosigner Release: Read the fine print of your lease or loan to see if there's a cosigner release option. This is also a good thing to check before you sign the original contract. If you make enough payments on-time, some lenders will allow you to remove the cosigner name from your loan.
  • Sell the Car and Pay Off Your Loan: If you're not eligible for any of the above options, you can sell your vehicle and pay off the remainder of the loan. Doing so will immediately remove the cosigner from your car loan, but it will only work if you're not underwater on your current car loan.

Learn More About Car Finance With Elgin CDJR!

Removing a cosigner from an auto loan is an easier process than you may think. Review your current loan with your local Elgin dealership and lender to determine if you can remove your cosigner! Then, read along with Elgin CDJR as we discuss whether you can lease a car with bad credit or what the best car loan rates are!