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Posted in Auto Loans
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Question By
suueebee

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can a co-signer of a car loan be taken off of the loan after 6 months?

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Helpful to 16 out of 24 people

No. The only thing that you can do is to have the primary person apply for a new loan in only their name once their credit has improved enough. It all depends on that persons credit profile, but they may have to have on time payments for at least a year before some lenders may consider refinancing the loan.

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It depends

Helpful to 7 out of 10 people

The answer depends on a few factors, most notably - why was the cosigner requested in the first place? If the primary borrower has a track record of not paying their bills, there is a good chance the financial institution will not like the risk of taking off the cosigner. Also, does the primary borrower make enough money to make the monthly payments on their own with their other obligations? 

The only way to find out is to have the primary borrower apply for a refinance, either with the same lender or a different lender in their own name. However, banks prefer to see payments over a 12 month period, not 6. Also, you can not just walk in and state you want to be taken off. Yes, dealerships will tell you otherwise, but their job is to get you to sign the papers so they can make the sale, very few of them actually understand how the financing aspect works.

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Co signing

Helpful to 5 out of 7 people

I oughyou have a credit rating that is right on the edge of disaster I wouldn't reccomend cosigning on an adult childs car.When you cosign,you are in effect the primary holder of the debt and not the person who actually drives the car.My kid was at the dealership and wanted to get started with the process while I was on my way there.Well,the dealership ran my ssn through at least a dozen loan companies before I even got there.My girl did get a nice used car,at 24% interest(ouch)while dropping my credit score into the very poor range.I took along time getting it up and one dealership screwed me.Now if my car gets totalled I wouldn't be able to get a 1000 dollar loan for the deductable.I have learned to look at financial situations at every possible angle before acting.Don't let car dealers use time pressure to get you to sign,the cars were there yesterday and will be there tommorow,take your time and tread carefully.

Reply by
MERCBOBKAT

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Enter Your Reply THIS HAPPENED TO ME AT TOYOTA IN FACT M SON ALREADY LEASED A CARWITH THEM WIT OUT ME AS COSIGHNER AND HE WAS HAVING TROUPLE WITH THAT NEW CAR WHICH HE ONLY HAD IT FOR 3MONTHS THE GAS PADLE KEPT STICKING ON IT AND THEY WOULD'NT REPLACE CAR AND FORCED HIM TO TRADE IT IN THEN THEY FORCED ME TO COSIGHN FOR NEW ONE NOW I'M STUCK WITH IT AFTER THEY ALREADY TOOK CAR BACK.H

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Sorry, no.

Helpful to 7 out of 13 people

When you co-sign a loan, you are guaranteeing that the loan originator will make all payments on time or else YOU will pay.  Until that loan is paid in full, your name will remain on it and it will affect your credit.  That is why co-signing is a bad idea.

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Only if they die.  Otherwise, you must refinance a new loan in the Signer's name only.

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car loan

can you sue the person you cosign for.

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cosign

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can you sue the person you cosign with.

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No How

Helpful to 2 out of 6 people

Once a cosigner alway's a cosigner.  That is untill the loan is paid in full, then of yeah your off the hook but a day before that event, sorry:(? 

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