Auto Loan Cosigners: Can a Cosigner Become the Primary Borrower?

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Editor’s note: Lantern by SoFi seeks to provide content that is objective, independent and accurate. Writers are separate from our business operation and do not receive direct compensation from advertisers or partners. Read more about our Editorial Guidelines and How We Make Money.
What Is an Auto Loan Cosigner?
Ways a Cosigner Can Become the Primary Borrower
Can a Cosigner Take Possession of the Car?
Taking Possession of a Car You Cosigned For
Can a Cosigner Sue the Primary Borrower for the Entire Amount of a Loan?
What Happens When a Cosigner Sues the Primary Borrower?
The Rights of the Primary Borrower on a Car Loan
The Rights of the Cosigner
Can a Cosigner Be Removed from a Car Loan?
Ending a Cosigned Car Loan
Pay off the loan Loan deferment Refinance Voluntary surrender Sell the car
Pay Off the Loan
Loan Deferment
Refinance
Voluntary Surrender
Sell the Car
Auto Refinancing Options
Collect the documents you’ll need, including information about your vehicle, the current loan, auto insurance and your income and employment details. Shop for the best financial institution; if happy with the current one, also investigate current rates and terms at the same lender. Compare the interest rates and APRs; fees; application process; customer service; and so forth. You can also investigate private auto loans. Apply for the loan at your lender of choice. Once the loan is approved, the lender will pay off the old loan and future payments go to the new one under the new rate and terms.
The Takeaway
About the Author
Kelly Boyer Sagert is an Emmy Award-nominated writer with decades of professional writing experience. As she was getting her writing career off the ground, she spent several years working at a savings and loan institution, working in the following departments: savings, loans, IRAs, and auditing. She has published thousands of pieces online and in print.
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